Scales (SCL) H1 2024 earnings summary

Executive summary

• Group earnings rebounded in 1H24, with underlying NPAT attributable to shareholders up 97% to $28.5 million and reported NPAT up 167% to $38.1 million, driven by horticulture recovery and stable Global Proteins performance.

• Strategic growth included acquisition of Bostock orchards, full ownership of Profruit, and increased stake in Meateor Australia to 50%.

• Financial results were in line with expectations, with directors reaffirming FY24 guidance.

• Revenue for the six months ended 30 June 2024 was $318.1m, up from $309.4m year-over-year.

• Blyth and Te Papa orchards classified as held for sale, with a post-period sale agreement for $34.0m.

Financial highlights

• Underlying EBITDA was $60.5 million, up 46% year-over-year; reported NPAT attributable to shareholders was $38.1 million, up 167%.

• Horticulture Underlying EBITDA surged 162% to $30.0 million, Global Proteins Underlying EBITDA was $29.6 million, and Logistics Underlying EBITDA rose 44% to $3.8 million.

• Net debt increased to $81.9 million as of 30 June 2024, reflecting recent acquisitions, but a return to net cash is forecast by year-end, assuming orchard sale settlements.

• EBITDA for the period was $61.5 million, up from $30.5 million year-over-year.

• Basic and diluted EPS were 19.8 cents, up from 2.7 cents year-over-year.

Outlook and guidance

• FY24 underlying NPAT attributable to shareholders is expected to be within $30.0 million to $35.0 million.

• Full-year underlying EBITDA guidance remains at $81–91 million.

• The impact of recent transactions is forecast to be a marginal net loss for FY24, with Global Proteins expected to outperform original expectations but with a weaker second half.

• Horticulture segment expected to benefit from recent orchard acquisitions and long-term supply agreements.

• Ongoing evaluation of growth opportunities, especially in Global Proteins.