In This Article:
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Underlying EBITDA: $91.7 million, a record group performance.
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Underlying NPAT: $53.6 million.
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Underlying NPAT Attributable to Shareholders: $34.3 million, towards the top end of guidance.
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Reported NPAT Attributable to Shareholders: $30.7 million, up almost 500% from last year's $5.2 million.
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Group Revenue: Up 3% to almost $585 million.
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Global Proteins Underlying EBITDA: $55.4 million.
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Horticulture Underlying EBITDA: $37.7 million.
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Logistics Underlying EBITDA: $6.9 million, a record result.
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Net Cash Position: In line with last year despite M&A transactions.
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Apple Export Volumes: 11% increase in Mr. Apple's own grown export volumes.
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Premium Apple Volumes: Increased from 64% to 72% of total apple volumes.
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Juice Concentrate Sales: Record volume, up 35% compared to last year.
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Logistics Volume Growth: Ocean freight up 16%, airfreight up 71%.
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Group ROCE: 14.5%, above the target of 12.5%.
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Dividend Payments: Expected to be between 50% and 75% of underlying NPAT attributable to shareholders.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Scales Corp Ltd (FRA:S05) reported a record group performance with an underlying EBITDA of $91.7 million and an underlying NPAT of $53.6 million for 2024.
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The company achieved a significant increase in reported NPAT attributable to shareholders, up almost 500% compared to last year, reaching $30.7 million.
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Global Proteins division delivered a strong underlying EBITDA of $55.4 million, with Meateor Australia and Esro Petfood progressing well in their start-up phases.
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Horticulture division saw improved apple volumes, quality, and average prices, with a focus on premium varieties leading to increased margins.
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Logistics division achieved a record underlying EBITDA of $6.9 million, supported by higher volumes of ocean and airfreight.
Negative Points
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Revenue from Global Proteins saw an 11% drop, partly due to the winding down of Meateor International.
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The transition of Esro Petfood to profitability has been delayed, impacting expected earnings growth.
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Corporate costs saw a significant increase in the second half due to STI bonuses, which may not be sustainable.
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The logistics division's performance included a one-off impact from airfreight volumes, which is not expected to recur in 2025.
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The acquisition of Bostock orchards is expected to have a phased impact, with full benefits not realized immediately in 2025.
Q & A Highlights
Q: On the horticulture side, is the 15% margin target still sustainable given the changes in underlying orchards? A: Andrew Borland, Managing Director, stated that they are moving in that direction, with a focus on higher volumes of premium apples like Dazzle and Posy. While not committing to 15% immediately, they expect the overall return on capital employed (ROCE) to reach double figures soon.