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) has announced a new 50/50 joint venture with Esro Food Group.</li><li> Esro is an animal by-product processor with factories in The Netherlands, Belgium and Spain.</li><li>Under the new joint venture, Scales will provide a €15m (NZ$27m) loan to fund capex for two European petfood ingredient processing plants. </li></ul>

Scales (SCL) has announced a new 50/50 joint venture with Esro Food Group. Esro is an animal by-product processor with factories in The Netherlands, Belgium and Spain.Under the new joint venture, Scales will provide a €15m (NZ$27m) loan to fund capex for two European petfood ingredient processing plants. 

<ul><li>Scales (SCL) has announced an agreement to expand its Global Protein division into Europe via a 50/50 joint venture with Esro Food Group (“Esro”).</li><li>Esro is an animal by-product processor with factories in The Netherlands, Belgium and Spain.</li><li>Esro’s owners are the Netherlands-based Rooijackers family, the Fayman family (who SCL partnered with on their Australian expansion), and Rabobank Investment via a minority holding.</li></ul>

Scales (SCL) has announced an agreement to expand its Global Protein division into Europe via a 50/50 joint venture with Esro Food Group (“Esro”).Esro is an animal by-product processor with factories in The Netherlands, Belgium and Spain.Esro’s owners are the Netherlands-based Rooijackers family, the Fayman family (who SCL partnered with on their Australian expansion), and Rabobank Investment via a minority holding.

Scales (SCL) - Global Proteins Expansion into Europe

<ul><li>Scales' (SCL) current share price suggests investors have a free option on horticulture recovery.</li><li>The likelihood of material permanent (Cyclone Gabrielle) damage to orchard trees has reduced relative to our previous expectations, and tailwinds in the pet industry should partially offset most margin pressures.</li><li>Operating drivers have become more complicated with new ventures and the highly discrete nature of contracts in the global proteins space, and this is likely to continue as SCL has dry powder for further acquisitions.</li></ul>

Scales' (SCL) current share price suggests investors have a free option on horticulture recovery.The likelihood of material permanent (Cyclone Gabrielle) damage to orchard trees has reduced relative to our previous expectations, and tailwinds in the pet industry should partially offset most margin pressures.Operating drivers have become more complicated with new ventures and the highly discrete nature of contracts in the global proteins space, and this is likely to continue as SCL has dry powder for further acquisitions.

<ul><li>Guidance range reinstated: SCL's updated FY23 underlying NPAT guidance range (NZ$14m–NZ$19m) represents a ~NZ$10m reduction at the mid-point from the previous guidance range (NZ$23.5m–NZ$28.5m) which was withdrawn following the cyclone</li><li>The lasting impact of Cyclone Gabrielle on SCL's apple crop doesn't appear material at this stage: SCL estimates total tree losses across all owned and leased orchards are ~5%</li><li>Near-term forecasts updated: The FY23 crop from SCL's own orchards is now estimated to reduce approximately ~25% compared to SCL's pre-Cyclone expectations</li></ul>

Guidance range reinstated: SCL's updated FY23 underlying NPAT guidance range (NZ$14m–NZ$19m) represents a ~NZ$10m reduction at the mid-point from the previous guidance range (NZ$23.5m–NZ$28.5m) which was withdrawn following the cycloneThe lasting impact of Cyclone Gabrielle on SCL's apple crop doesn't appear material at this stage: SCL estimates total tree losses across all owned and leased orchards are ~5%Near-term forecasts updated: The FY23 crop from SCL's own orchards is now estimated to reduce approximately ~25% compared to SCL's pre-Cyclone expectations

<ul><li>Scales (SCL) has provided an underlying FY23 NPAT guidance range of NZ$14m-NZ$19m after previously withdrawing guidance (NZ$23.5m-NZ$28.5m) following the impact of Cyclone Gabrielle.</li><li>This is broadly in line with our current FY23 forecast of ~NZ$18m.</li><li>The announcement appears broadly positive, with a lower than expected proportion of trees requiring replacement (~2.5% of total planted area) which should be met within the company’s existing capex budget.</li></ul>

Scales (SCL) has provided an underlying FY23 NPAT guidance range of NZ$14m-NZ$19m after previously withdrawing guidance (NZ$23.5m-NZ$28.5m) following the impact of Cyclone Gabrielle.This is broadly in line with our current FY23 forecast of ~NZ$18m.The announcement appears broadly positive, with a lower than expected proportion of trees requiring replacement (~2.5% of total planted area) which should be met within the company’s existing capex budget.

Scales (SCL): Market Update and FY23 Revised Guidance

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 - Scaling into Europe

Scales (SCL) has announced a new 50/50 joint venture with Esro Food Group. Esro is an animal by-product processor with factories in The...

Forsyth Barr

Scales (SCL) - Global Proteins Expansion into Europe

Scales (SCL) has announced an agreement to expand its Global Protein division into Europe via a 50/50 joint venture with Esro Food Group (“Esro”).

Forsyth Barr

Scales: An Ap-Peeling Option

Scales' (SCL) current share price suggests investors have a free option on horticulture recovery; SCL's track record of robust return on capital...

Forsyth Barr

Scales: Emerging From the Storm

Scales (SCL) has provided underlying FY23 NPAT guidance of NZ$14m–NZ$19m following an assessment of the impacts of Cyclone Gabrielle and trading...

Forsyth Barr

Scales (SCL): Market Update and FY23 Revised Guidance

Scales (SCL) has provided an underlying FY23 NPAT guidance range of NZ$14m-NZ$19m after previously withdrawing guidance (NZ$23.5m-NZ$28.5m)...

Forsyth Barr

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