11 Dec 2015

Scales upgrades profit forecast

1:07 pm on 11 December 2015

Apple producer Scales has upgraded its full year net profit forecast by as much as 77 percent on the back of a bumper harvest of apples.

The company, which listed on the New Zealand stock exchange last year, expects to make a net profit of between $34.7 million and $36.8 million, in the year ending in December, compared with the prospectus forecast of $20.8m.


Photo: 123rf

The total interim and special dividends are expected to be 10.5 cents per share, compared with three cents last year.

The Mr Apple brand had a stand-out year, attracting premium prices, particularly in South East Asia, Scales managing director Andy Borland said.

"Mr Apple started the year well with a record crop that included especially strong volumes of premium varieties," Mr Borland said.

"As the year progressed we have continued to benefit from our strong brand positioning in the markets we operate in, as well as improvements in foreign exchange rates and better than usual shipping rates."

Scales was expecting an underlying operating profit of between $60m and $63m this financial year, and is forecasting between $48m and $55m for 2016, Mr Borland said.

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