Full Year 2025 Scales Corporation Ltd Earnings Call Transcript
Key Points
- Scales Corp Ltd (HAM:S05) delivered record results across all earnings measures for FY25, with underlying EBITDA increasing by 50% to $137.6 million.
- The horticulture division achieved an outstanding result, with increased volumes, higher average prices, and an improved variety mix, aided by the acquisition of Bostock orchards.
- Global proteins division saw solid performance, with significant contributions from Shelby, Meateor Australia, Meateor New Zealand, and Fayman International.
- Logistics division produced another record result, driven by a significant increase in volumes, particularly in air freight, which saw an 81% increase.
- The company has made strategic investments in joint ventures, increasing its shareholdings in Shelby and ANZ Exports, which are expected to contribute positively to future earnings.
- The forecast for FY26 indicates a normalization of horticulture gains, with a 5% guided fall in apple volumes due to expected yield reductions.
- There is a potential decrease in revenue per kilogram in the pet food ingredients business due to changes in business mix.
- The logistics division faces challenges with the cherry season not performing as well as the previous year.
- The European expansion for global proteins is taking longer than expected, with delays in establishing a second plant.
- Net debt levels increased significantly due to working capital requirements and joint venture investments, impacting the financial position.
Thank you for standing by and welcome to the Scales Corporation for your results call. (Operator Instructions). I would now like to hand the conference over to Mr. Andy Borland, Managing Director. Please go ahead.
Thanks everybody. I'd like to welcome you to the Scales full year results announcement for the year ended 31 December 2025. With me is Steve Kennelly, Scales CFO, and Geoff Smith, Scales Chief Operations Officer. Earlier this morning, we lodged our results with the NZX including a presentation pack that we'll base their comments on during this call.
We'll run through the slides and then we'll take questions. If you have further questions after the call, we'll be available for the rest of the day. Our agenda is shown on the slide. We'll go through the slide to the FY25 results and performance followed by our outlook for '26.
First, a summary of FY25's results. I'm pleased to announce that the group delivered record results across all earnings measures.
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