New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>Scales Corporation (SCL) has provided an initial assessment of the impact of Cyclone Gabrielle.</li><li>Scales does not hold crop insurance for this event, and a material financial impact is expected for the Horticulture division in FY23.</li><li>Prior group FY23 NPAT guidance of NZ$23.5m – NZ$28.5m has been withdrawn, and further quantitative information has not been provided at this stage.</li></ul>

Scales Corporation (SCL) has provided an initial assessment of the impact of Cyclone Gabrielle.Scales does not hold crop insurance for this event, and a material financial impact is expected for the Horticulture division in FY23.Prior group FY23 NPAT guidance of NZ$23.5m – NZ$28.5m has been withdrawn, and further quantitative information has not been provided at this stage.

Scales Corporation (SCL): Impact of Cyclone Gabrielle

<ul><li>Scales (SCL) has reconfirmed its FY22 underlying NPAT guidance range (NZ$23.5m – NZ$28.5m), but now expects it will be “very unlikely” that the top end of the range is achieved</li><li>Delays in the apple division are the key driver of the slightly more reserved outlook, with market turbulence in Chinese and European markets</li><li>Finalisation of apple sales is likely to slip into FY23 as SCL’s financial year ends in December</li></ul>

Scales (SCL) has reconfirmed its FY22 underlying NPAT guidance range (NZ$23.5m – NZ$28.5m), but now expects it will be “very unlikely” that the top end of the range is achievedDelays in the apple division are the key driver of the slightly more reserved outlook, with market turbulence in Chinese and European marketsFinalisation of apple sales is likely to slip into FY23 as SCL’s financial year ends in December

Scales (SCL): Trading Update and FY23 Guidance

<ul><li>Scales (SCL) has reconfirmed its FY22 underlying NPAT guidance range (NZ$23.5m–NZ$28.5m), but now expects it will be “very unlikely” that the top end of the range is achieved</li><li>SCL has been unable to fully sell its 2022 harvest in FY22 (adversely impacting horticulture earnings), with some slippage into FY23. </li><li>SCL also provided first time FY23 underlying NPAT guidance, which is consistent with FY22 and an underlying EBITDA guidance range of NZ$68m–NZ$77m (we forecast ~NZ$73m)</li></ul>

Scales (SCL) has reconfirmed its FY22 underlying NPAT guidance range (NZ$23.5m–NZ$28.5m), but now expects it will be “very unlikely” that the top end of the range is achievedSCL has been unable to fully sell its 2022 harvest in FY22 (adversely impacting horticulture earnings), with some slippage into FY23. SCL also provided first time FY23 underlying NPAT guidance, which is consistent with FY22 and an underlying EBITDA guidance range of NZ$68m–NZ$77m (we forecast ~NZ$73m)

<ul><li>Scales (SCL) confirms the completion of recent Australian acquisitions Meateor Australia (a 33% stake of a new Melbourne-based petfood plant), and 50% of edible protein by-product exporter Fayman International’s Australian operations.</li><li>SCL has flagged that current export crop sales continue to be below the prior year.</li><li>We expect lower sales through the Mid-Autumn Festival may be a key factor in lower than expected sales since the 1H22 result announcement in August.</li></ul>

Scales (SCL) confirms the completion of recent Australian acquisitions Meateor Australia (a 33% stake of a new Melbourne-based petfood plant), and 50% of edible protein by-product exporter Fayman International’s Australian operations.SCL has flagged that current export crop sales continue to be below the prior year.We expect lower sales through the Mid-Autumn Festival may be a key factor in lower than expected sales since the 1H22 result announcement in August.

Scales (SCL): Acquisition Completion and FY22 Trading Update

<ul><li>Scales (SCL) has announced investments in: (1) a 33% stake (A$4m) of a new Melbourne-based petfood plant, and (2) a 50% acquisition (A$23m) of Fayman International, an edible protein by-product exporter</li><li>We view the acquisitions to be a positive outcome, supplementing SCL’s growing global proteins division by increasing petfood capacity and opening new channels for human consumption</li><li>The structure of these acquisitions closely follows the roadmap laid out by the Shelby US acquisition</li></ul>

Scales (SCL) has announced investments in: (1) a 33% stake (A$4m) of a new Melbourne-based petfood plant, and (2) a 50% acquisition (A$23m) of Fayman International, an edible protein by-product exporterWe view the acquisitions to be a positive outcome, supplementing SCL’s growing global proteins division by increasing petfood capacity and opening new channels for human consumptionThe structure of these acquisitions closely follows the roadmap laid out by the Shelby US acquisition

Scales (SCL): Australian Investments in Global Proteins Division

New Zealand

Scales Corporation Limited is a New Zealand provider of essential supply chain services for primary exporters, importers and FMCG businesses. The Company's horticulture division involves the global exporting of apples while its storage and logistics division includes nationwide cold storage coverage and a logistics business specialising in sea and air freight of primary produce.

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Scales Corp Ltd (SCL NZ)

Scales Corporation (SCL): Impact of Cyclone Gabrielle

Scales Corporation (SCL) has provided an initial assessment of the impact of Cyclone Gabrielle; across SCL’s 15 orchards, three have suffered...

Forsyth Barr

Scales (SCL): Trading Update and FY23 Guidance

Scales (SCL) has reconfirmed its FY22 underlying NPAT guidance range (NZ$23.5m – NZ$28.5m), but now expects it will be “very unlikely” that the top...

Forsyth Barr

Scales: Readjusting the Scales

Scales (SCL) has reconfirmed its FY22 underlying NPAT guidance range (NZ$23.5m–NZ$28.5m), but now expects it will be “very unlikely” that the top...

Forsyth Barr

Scales (SCL): Acquisition Completion and FY22 Trading Update

Scales (SCL) confirms the completion of recent Australian acquisitions Meateor Australia (a 33% stake of a new Melbourne-based petfood plant), and...

Forsyth Barr

Scales (SCL): Australian Investments in Global Proteins Division

Scales (SCL) has announced investments in: (1) a 33% stake (A$4m) of a new Melbourne-based petfood plant, and (2) a 50% acquisition (A$23m) of...

Forsyth Barr

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