Market update

Distribution Notice




Section 1: Issuer information
Name of issuer SCALES CORPORATION LIMITED
Financial product name/description ORDINARY SHARES
NZX ticker code SCL
ISIN (If unknown, check on NZX
website)
NZSCLE0002S8
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 05/01/2022
Ex-Date (one business day before the
Record Date)
31/12/2021
Payment date (and allotment date for
DRP)
14/01/2022
Total monies associated with the
distribution
$13,527,509.52
Source of distribution (for example,
retained earnings)
RETAINED EARNINGS
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.13194444
Total cash distribution $0.09500000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.01676471
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
100%
Imputation tax credits per financial
product
$0.03694444
Resident Withholding Tax per financial
product
$0.00659722
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
STEVE KENNELLY
Contact person for this announcement STEVE KENNELLY
Contact phone number 03 371-2263
Contact email address steve.kennelly@scalescorporation.co.nz
Date of release through MAP

08/12/2021

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Scales Corporation Limited
Head Office: 52 Cashel Street | Christchurch 8013 | New Zealand
Postal: PO Box 1590 | Christchurch 8140 | New Zealand
Phone: +64 3 379 7720
scalescorporation.co.nz






8 December 2021


SCALES CORPORATION DECLARES INTERIM DIVIDEND AND UPDATES 2021 GUIDANCE

The directors of Scales Corporation Limited (NZX:SCL) have declared a fully imputed interim cash
dividend for the 2021 financial year of 9.5 cents per share, to be paid on 14 January 2022. 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, although at a level no greater than actual Underlying
Net Profit Attributable to Shareholders for each year.
With regard to Guidance for the twelve months to 31 December 2021, directors advise that Underlying
Net Profit is now expected to be at the upper end of the previously advised range, of $32.0 million to
$37.0 million (which implied an Underlying Net Profit Attributable to Shareholders range of $23.5
million to $28.5 million). This is mainly due to the continued strong performance of the Food
Ingredients division.
Managing Director Andy Borland says “The 2021 year has been another challenging one across the
Group. Consequently, it is very pleasing to positively update our forecast financial result for the year.
Scales continues to benefit from our diversified nature and, in particular this year, from the strategic
advantage that Scales Logistics brings to the Group”.
“Whilst 2021 has seen the continuation of disruption to domestic and international operations, Scales’
diversification has helped mitigate this disruption. We have also continued our dual focus on
stabilising margins in Mr Apple and the wide-ranging growth initiatives within Food Ingredients. At
Mr Apple, the latest phase of orchard redevelopment, predominantly into the Dazzle variety, was
completed, and the new cool store adjacent to the Whakatu packhouse was fully operational. The
multi-year automation project also commenced. For Food Ingredients, a number of initiatives to
further extend our range of services and products are being pursued. Other investment opportunities,
both within our existing business sectors and externally, continue to be reviewed.

Looking ahead to the 2022 financial year, directors will now provide full year Guidance based on
Underlying Net Profit Attributable to Shareholders, ensuring consistent earnings per share
comparisons for each year. The Underlying Net Profit Attributable to Shareholders Guidance range for
2022 of $23.5 million to $28.5 million is at the same level as 2021 initial Guidance.
In providing Guidance for 2022, directors note:
• Selling prices within the horticultural division are forecast to be generally consistent with 2021;
• In addition to the increased costs for logistics incurred during 2021, the Group will incur
further significant shipping cost increases. Whilst some of these increases will abate over
time, there will be an additional negative impact for 2022;
• The on-going shortage of labour across the agri sector, reiterating the importance of
Mr Apple’s automation project;
• The Group has again assumed that the current initiatives within the horticulture industry to
source seasonal labour will be sufficient to meet requirements;
• It is also assumed that businesses will continue to operate on a business-as-usual basis,
considering the current COVID-19 settings in New Zealand;
• The Group will continue to focus a material level of capital expenditure on gross margin
improvement initiatives within Mr Apple for the 2022 year;
• The Guidance range implies:
i. an Underlying Net Profit range of between $30.5 million and $35.5 million; and
ii. an Underlying EBITDA range of between $62.0 million and $67.0 million.
Both ranges are in line with initial Guidance for 2021.
• A further update will be provided as part of the 2021 year-end announcement, scheduled for
February 2022.


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