Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Scales' 2013 earnings rise 50% on Asian demand for apples

Scales Corp 2013 earnings rise 50% on Asian demand for apples

By Suze Metherell

May 6 (BusinessDesk) - Scales Corp, the fruit and vegetable logistics group controlled by private equity firm Direct Capital, lifted 2013 profit by 50 percent as rising Asian demand for apples helped mitigate the impact of a stronger kiwi dollar.

Net profit rose to $20.4 million in calendar 2013, from $13.6 million a year earlier, the Christchurch-based company said in a statement. Sales rose 17 percent to $278 million. The Mr Apple unit exported 4 million cartons, of which 2.82 million cartons were grown at its own orchards. Scales didn’t break down earnings for its horticulture, storage and logistics, and food ingredients units.

“We are increasing apple volumes targeted at premium Asian markets,” said Andy Borland, managing director. “Apple prices were strong in most of the company’s key markets which more than offset the impact of a persistently high New Zealand dollar.”

Apples made up a third of New Zealand’s $1.55 billion in fruit exports in the year ended March 31, with Thailand the biggest destination in Asia with $46 million in annual sales.

Direct Capital, with the New Zealand Superannuation Fund and Accident Compensation Corp as co-investors, acquired a 79 percent stake in Scales for $44 million in 2011 from Allan Hubbard’s failed finance group, South Canterbury Finance. The holding now sits at 84 percent and Direct Capital’s Anthony Batterton and Mark Hutton are two of the four Scales directors.

Scales launched a new air freight service, Balance Cargo, in the period which it said secured new clients. Sea freight operations benefited from increased volumes of apples, passing on savings to Mr Apple through its competitive rates.

Polarcold, its South Island cold storage operation, and its North Island Whakatu Coldstores unit met expectations and are securing longer term contracts, the company said. It expanded capacity for bulk liquid storage with a new 2,000 tonne tank at Port of Napier.

Its fruit juice concentrate business Pro Fruit and Scales Meateor pet food unit had a good performance, it said, without being specific.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news