Scales (SCL) H1 2026 earnings summary

Executive summary

• Achieved record first-half results for the six months ended 30 June 2026, with revenue more than doubling year-over-year to $762.1 million, driven by organic growth, M&A, and strong contributions from Global Proteins, Horticulture, and Logistics.

• Underlying EBITDA rose 18% to $102.2 million, and underlying NPATAS increased 7% to $52.0 million, reflecting robust divisional performance and increased shareholding in key businesses.

• All divisions reported top-line revenue growth, with Horticulture and Logistics showing resilience despite geopolitical challenges.

• Net profit attributable to equity holders was $30.1 million, down from $48.4 million year-over-year, impacted by impairments and Esro Petfood B.V. losses.

Financial highlights

• Revenue reached $762.1 million, up 105% year-over-year; underlying EBITDA was $102.2 million, up 18%; underlying NPATAS rose 7% to $52.0 million.

• Gross margin improved to 18.9% from 18.2% year-over-year; operating expenses increased 42% due to expansion and M&A.

• Net debt increased to $106.7 million, leverage ratio at 0.7x rolling 12-month EBITDA.

• Operating cash flow was $20.0 million, a significant improvement from negative $9.2 million in the prior year period.

• Interim and final dividends of 12.5 cents per share each were declared and paid, with $5.0 million reinvested and $13.5 million paid in cash.

Outlook and guidance

• FY26 guidance for underlying NPATAS raised to $55–$60 million; underlying EBITDA expected between $135 million and $142 million.

• Directors note higher Mr Apple sales run rate and ongoing risks from geopolitical tensions and final pricing.

• Expect net debt to reduce in the second half as horticulture receivables are collected.

• Global Proteins outlook remains cautious due to tight supply and geopolitical uncertainty, but medium-term confidence is maintained.