Announcement

MKTUPDTE: SCL: Market update 08:30a.m. 
SCL  
05/12/2019 08:30  
MKTUPDTE  
PRICE SENSITIVE  
REL: 0830 HRS Scales Corporation Limited  
 
MKTUPDTE: SCL: Market update  
 
5 December 2019  
 
SCALES CORPORATION DECLARES INTERIM DIVIDEND AND REAFFIRMS 2019 GUIDANCE  
 
The directors of Scales Corporation Limited (NZX:SCL) have declared a fully  
imputed interim cash dividend for the 2019 financial year of 9.5 cents per  
share, to be paid on 17 January 2020. The directors reiterate their  
commitment to paying an annual cash dividend level of no less than 19 cents  
per share whilst the company holds Net Cash.  
Directors have also reaffirmed guidance for the twelve months to 31 December  
2019 of an Underlying Net Profit of between $32.0 million and $37.0 million  
based on current forecasts.  
This past year has further reinforced our current strategy and, in  
particular, the replanting plan for the Horticulture Division. During the  
2019 winter the company has redeveloped 44 hectares into premium apple  
varieties, with a further 32 hectares scheduled for the winter of 2020.  
Managing Director Andy Borland says "For the 2019 season all premium apple  
varieties to Asia and Near Markets have experienced record sales results,  
while our traditional varieties had mixed results, particularly late season  
sales to Europe and the UK. Although the near-term forecasts for fruit  
volumes remain flat, the Group expects significant returns from the  
replanting program from the 2022 year, in line with our earlier  
announcements.  
As always, we are grateful to the tireless efforts of the entire Scales  
team".  
Looking ahead to the 2020 financial year, directors have provided full year  
guidance of Underlying Net Profit of between $30m and $36m.  
In providing Guidance for 2020, directors note:  
o As previously advised, the Horticulture division's forecast apple volumes  
will be impacted by the ongoing redevelopment work undertaken on Mr Apple's  
orchards;  
o A material increase in capital expenditure within the Horticultural  
division to address increasing domestic costs, including labour;  
o The guidance range implies an Underlying EBITDA range of between $49m and  
$55m, which is unchanged from 2019;  
o Interest income has reduced due to lower rates and the past interest  
benefit from the sale of the Storage business;  
o A further update will be provided as part of the 2019 year end announcement  
scheduled for February 2020.  
 
About Scales Corporation  
Scales Corporation is a diversified agribusiness group. It comprises three  
operating divisions: Horticulture, Food Ingredients and Logistics. The  
company's diverse spread of activities gives Scales broad exposure to New  
Zealand's agribusiness sector. Scales Corporation was founded in 1897 as a  
shipping business by George Herbert Scales. Today it has operations across  
New Zealand, Australia and the United States. Find out more at  
www.scalescorporation.co.nz.  
Contact  
Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021 975  
999, email: andy.borland@scalescorporation.co.nz  
End CA:00345440 For:SCL Type:MKTUPDTE Time:2019-12-05 08:30:26  

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