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) 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

<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.

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 - 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

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

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