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' (SCL) FY23 result did little to fundamentally change our view on the company's positioning and outlook.</li><li>We walk away comfortable that: (1) Horticulture earnings will recover to near pre-COVID levels in FY25, (2) customer de-stocking impacts within Global Proteins should be largely complete in the next six months, and (3) the medium-term outlook for Global Proteins earnings remains robust.</li><li>We continue to see SCL as well positioned to capture solid earnings growth from ongoing constructive animal care trends, while near-term earnings are also supported by a Horticulture recovery. </li></ul>

Scales' (SCL) FY23 result did little to fundamentally change our view on the company's positioning and outlook.We walk away comfortable that: (1) Horticulture earnings will recover to near pre-COVID levels in FY25, (2) customer de-stocking impacts within Global Proteins should be largely complete in the next six months, and (3) the medium-term outlook for Global Proteins earnings remains robust.We continue to see SCL as well positioned to capture solid earnings growth from ongoing constructive animal care trends, while near-term earnings are also supported by a Horticulture recovery. 

<ul><li>We expect Scales (SCL) to round out a challenging FY23 with a result at the top end of its underlying NPAT guidance range of NZ$14.0m–NZ$19.0m.</li><li>Investor areas of focus will be: (1) insights into the recovery pathway for the horticulture division particularly with the 2024 crop shaping up to be strong;</li><li>(2) global proteins outlook as demand/inventory levels begin to normalise (where we expect commentary to be cautiously optimistic); </li></ul>

We expect Scales (SCL) to round out a challenging FY23 with a result at the top end of its underlying NPAT guidance range of NZ$14.0m–NZ$19.0m.Investor areas of focus will be: (1) insights into the recovery pathway for the horticulture division particularly with the 2024 crop shaping up to be strong;(2) global proteins outlook as demand/inventory levels begin to normalise (where we expect commentary to be cautiously optimistic); 

<ul><li>Scales (SCL) provided a reassuring FY23 trading update which addressed investors' key concerns around long-term horticulture impacts and the timing of an earnings recovery.</li><li>SCL confirmed: (1) there are no signs of further tree losses or long-term damage from Cyclone Gabrielle, (2) no changes to the FY23 NPAT guidance range of NZ$14m to NZ$19m, and (3) first time FY24 NPAT guidance of NZ$30m to NZ$35m: the upper end reflects a return to pre-COVID profitability. </li><li>SCL is typically conservative in issuing guidance, and we believe this update meaningfully reduces near-term uncertainty. </li></ul>

Scales (SCL) provided a reassuring FY23 trading update which addressed investors' key concerns around long-term horticulture impacts and the timing of an earnings recovery.SCL confirmed: (1) there are no signs of further tree losses or long-term damage from Cyclone Gabrielle, (2) no changes to the FY23 NPAT guidance range of NZ$14m to NZ$19m, and (3) first time FY24 NPAT guidance of NZ$30m to NZ$35m: the upper end reflects a return to pre-COVID profitability. SCL is typically conservative in issuing guidance, and we believe this update meaningfully reduces near-term uncertainty. 

<ul><li>Scales (SCL) reported a robust 1H23 result largely in line with our expectations.</li><li>While revenue and earnings in Horticulture and Logistics surprised to the upside, we expect this is largely due to a return to normalised levels of seasonality and a weaker 2H23 is expected.</li><li>Our FY23 underlying NPAT forecast remains NZ$18m, at the upper end of management's guidance range of NZ$14m to NZ$19m. </li></ul>

Scales (SCL) reported a robust 1H23 result largely in line with our expectations.While revenue and earnings in Horticulture and Logistics surprised to the upside, we expect this is largely due to a return to normalised levels of seasonality and a weaker 2H23 is expected.Our FY23 underlying NPAT forecast remains NZ$18m, at the upper end of management's guidance range of NZ$14m to NZ$19m. 

Scales - 1H23 Result —Barking Up the Right Tree

<ul><li>We expect Scales (SCL) to report a challenged 1H23 result on Wednesday, 23 August.</li><li>The impact of Cyclone Gabrielle in February is expected to weigh significantly on the horticulture division.</li><li>Current full year NPAT guidance is NZ$14m to NZ$19m (FB; ~NZ$18m).</li></ul>

We expect Scales (SCL) to report a challenged 1H23 result on Wednesday, 23 August.The impact of Cyclone Gabrielle in February is expected to weigh significantly on the horticulture division.Current full year NPAT guidance is NZ$14m to NZ$19m (FB; ~NZ$18m).

Scales - 1H23 Preview — Too Early to Dazzle

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Scales Corp Ltd (SCL NZ)

Scales - FY23 Result — Set to Dazzle

We continue to see SCL as well positioned to capture solid earnings growth from ongoing constructive animal care trends, while near-term earnings...

Forsyth Barr

Scales - FY23 Preview — Bearing Fruit?

We expect Scales (SCL) to round out a challenging FY23 with a result at the top end of its underlying NPAT guidance range of...

Forsyth Barr

Scales - Over the Core Issue

Scales (SCL) provided a reassuring FY23 trading update which addressed investors' key concerns around long-term horticulture impacts and the timing...

Forsyth Barr

Scales - 1H23 Result —Barking Up the Right Tree

While revenue and earnings in Horticulture and Logistics surprised to the upside, we expect this is largely due to a return to normalised levels of...

Forsyth Barr

Scales - 1H23 Preview — Too Early to Dazzle

We expect Scales (SCL) to report a challenged 1H23 result on Wednesday, 23 August. The impact of Cyclone Gabrielle in February is expected to weigh...

Forsyth Barr

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)