7 May 2014

Profit jump due to apple business

7:07 am on 7 May 2014

Scales Corporation has reported a 50 percent jump in annual net profit to $20.4 million, largely driven by its apple business.

apples

Photo: PHOTO NZ (file)

The Christchurch-based agribusiness is majority-owned by Direct Capital Investments, of which the Superannuation Fund and the Accident Compensation Corporation, are co-investors.

Direct Capital acquired the interest in Scales through the receivership of South Canterbury Finance.

Scales revenue increased 17.2 percent to more than $278.1 million in calendar 2013 compared with the previous year.

Operating profit was up more than 34.4 percent to $44.4 million.

Scales operates three divisions: horticulture, storage and logistics, and food ingredients.

Managing director Andy Borland said all three divisions had a strong year, but its horticulture business, which is predominantly the Mr Apple business in Hawke's Bay, was a stand-out and will drive the business this year.

Mr Apple makes up more than half of the Scales business, and Mr Borland said it was the largest integrated grower, packer and exporter in New Zealand.

Almost 50 percent of the apples are exported to Asia, the Middle East and India, and the remainder is sent to Britain, Europe, America and Canada.

Mr Borland said the company exported a record 4.2 million cartons last year, and Scales was increasing apple volumes targeted at premium Asian markets.

Scales is majority owned by Direct Capital Investments, of which the Superannuation Fund and the Accident Compensation Corporation, are co-investors.

Direct Capital acquired the interest in Scales through the receivership of South Canterbury Finance.