Scales sees profit at top of range, driven by ingredients

Apple grower Scales expects its profit to come in at the top of the range this year. Photo / Hawke's Bay Today

NZX-listed Scales said its annual underlying net profit is now expected to be at the upper end of its previously advised range of $32 million to $37m due to a strong performance by its food ingredients division.

Scales' business comprises three operating divisions - horticulture, food ingredients and logistics.

Managing director Andy Borland said it had been another challenging year for the group.

"Scales continues to benefit from our diversified nature and, in particular this year, from the strategic advantage that Scales Logistics brings to the group," he said in a statement.

While 2021 had seen the continuation of disruption to domestic and international operations, Scales' diversification had helped mitigate the disruption.

"We have also continued our dual focus on stabilising margins in Mr Apple and the wide-ranging growth initiatives within food ingredients," he said.

Looking to the 2022 financial year, Scales set a guidance of an underlying net profit attributable to shareholders of $23.5m to $28.5m - the same level as 2021 initial guidance.

This guidance range implied an underlying net profit range of between $30.5m and $35.5m and underlying ebitda range of between $62m and $67m.

The company has declared a fully imputed interim cash dividend for the 2021 financial year of 9.5 cents per share, to be paid on January 14.

Scales said it remained committed to paying an annual cash dividend level of no less than 19 cents per share.

The company's shares last traded at $5.42, having gained 13.4 per cent over the last 12 months.