2023 Annual Report

Scales Corporation Limited
Annual Report 2023

Scales delivered a commendable Group 2023
performance in what was a very disruptive year. Once
again, our diversified strategy, combined with the ability
of each of our divisions to execute their individual
strategies during testing times, proved to be important
factors in our success. However, this was only made
possible by our dedicated team of staff, who worked hard
in difficult physical, mental and economic conditions.
It is difficult to believe that this time last year the Hawke’s
Bay community was reeling from the devastating effects
of Cyclone Gabrielle. One year on, unfortunately many
parts of the community and its people continue to be
affected. And whilst Mr Apple is not quite yet back to its
pre-Cyclone capacity, the hard work and dedication of
our team has resulted in an amazing transformation of
our facilities, from silt and debris to orchards that have
been remediated and are being harvested.
Global Proteins continued on its growth path, investing in
Esro Petfood in August 2023. Esro Petfood is a 50 / 50 joint
venture with Esro Food Group, and it provides us with a
strategically important location in Europe. We are extremely
pleased that Esro Food Group has chosen to partner with
Scales, and we believe there will be significant long-term
opportunities from, and benefits to, working together.
Sustainability was to the forefront of our minds whilst we
remediated our orchards, and we made progress on a
number of water and decarbonisation initiatives. We also
look forward to sharing our first standalone Climate-
Related Disclosures (CRD) report, which will be released
this year.
More than ever, the standout performers of Scales this year
were our staff. We are immensely proud of the efforts of all our
people around the world, who have worked extremely hard in
difficult circumstances. To them, we say a sincere “thank you”.
Welcome to our Annual Report for our 112th year of trading.
Weathering the Storm
At the heart of Scales is resilience and tenacity. Cyclone Gabrielle may have wreaked havoc
on Hawke’s Bay, but it did not suppress the ability of our people to recover from adversity.
BeforeAfter
Introduction
Scales Corporation Limited

Australia
USA
Belgium
New Zealand
Contents
02
Introduction
04
Key 2023 Highlights
06
Managing Director and Chair’s Report
16
Sustainability Report
22
Divisional Overview
40
Leadership Profiles
44
Financial Statements
90
Independent Auditor’s Report
94
Corporate Governance
113
Director Disclosures
117
Glossary
119
Directory
Horticulture
Juice manufacturer
Vertically integrated
apple grower,
packer & marketer
Apple marketer
Logistics
Air & sea freight
Global Proteins
Petfood ingredient
procurers, processors
& marketers
Edible protein exporter
Operational Locations
Introduction
Annual Report - Year Ended 31 December 2023Annual Report - Year Ended 31 December 2023

Our Numbers
Revenue
$565.4m
(2022: $619.2m)
Key Highlights
Scales Corporation Limited

3.92m
TCEs of all apples exported
(2022: 4.58m)
2.73m
TCEs of own-grown
apples exported
(2022: 3.32m)
$38.4m
Underlying NPAT
(2022: $46.4m)
$24.7m
N PAT
(2022: $38.2m)
$19.0m
Underlying NPAT attributable
to shareholders
(2022: $27.6m)
$5.2m
NPAT attributable
to shareholders
(2022: $19.4m)
10.8%
Return on capital employed
(2022: 13.5%)
$67.5m
Underlying EBITDA
(2022: $77.9m)
13.4c
Underlying earnings per share
(2022: 19.5c)
3.7c
Earnings per share
(2022: 13.7c)
$12.0m
Net cash
(2022: $27.0m)
19.0c
per share
Dividends paid
(2022: 19.0c)
5.8m
litres of juice sold
(2022: 5.7m litres)
1 3 7,47 7 MT
of petfood ingredients sold
1

(2022: 158,595 MT)
1
Includes 100 per cent of volumes from
relevant businesses, i.e. total volumes
controlled directly and indirectly by Global
Proteins, but excludes volumes sold by
Meateor Australia and Esro Petfood.
26,010
TEUs of ocean freight managed
(2022: 27,580 TEUs)
Key Highlights
Annual Report - Year Ended 31 December 2023

Managing
Director and
Chair’s Report
Managing Director and Chair's Report
Scales Corporation Limited

On behalf of the Board, we are delighted to
present Scales’ Annual Report for the year ended
31 December 2023 with Net Profit After Tax (NPAT)
of $24.7 million. This was a very commendable
Group performance in a disrupted year,
underpinned by strong Global Proteins earnings.
The Group generated revenue of $565.4 million,
down 9 per cent on the record revenue of the
previous year (2022: $619.2 million).
NPAT Attributable to Shareholders was $5.2 million,
also down on last year (2022: $19.4 million) partly
due to NZ IFRS goodwill impairment and asset
write-downs at Mr Apple of $13.2 million. These
adjustments were due to the impact of Cyclone
Gabrielle together with general market conditions.
Our Underlying results were positive, with
Underlying NPAT Attributable to Shareholders
of $19.0 million, Underlying NPAT of $38.4 million
and Underlying EBITDA of $67.5 million.
We continued to benefit from our diversified
agribusiness strategy, with the strengths of
each division being leveraged to improve the
performance of the Group.
1
Directors and management use non-GAAP (Underlying) profit measures
when discussing financial performance in this document. The Directors
and management believe that these profit measures provide meaningful
information that is helpful to investors and gives them a better understanding
of a company’s financial performance when presented in addition to GAAP (NZ
IFRS) information. Underlying profit measures are used internally to evaluate
performance of our divisions, establish operational goals and to allocate
resources. They also represent some of the profit measures required by Scales’
debt providers. Non-GAAP (Underlying) profit measures are not prepared in
accordance with NZ IFRS and are not uniformly defined, therefore the non-GAAP
profit measures reported in this document may not be comparable with those
that other entities report and should not be viewed in isolation or considered as
a substitute for GAAP (NZ IFRS) measures reported by Scales. Underlying profit
measures were not subject to an audit or review. Underlying NPAT and Underlying
EBITDA are shown before the deduction of share of Non-Controlling Interests.
A full reconciliation between Underlying and NZ IFRS measures is provided on
pages 36 to 39.
Underlying NPAT Attributable to Shareholders
$19.0m
$27.5m
$29.8m
$27.6m
$31.8m
20232019202020212022
Underlying EBITDA
$64.1m
$73.8m
$7 7. 9 m
$67.5m
$62.2m
20192020202120222023
2023
$000's
2022
$000’sVariance
Revenue565,356 619,173 -9%
EBITDA53,675 68,516 -22%
Underlying EBITDA67,5 1 4 77,893 -13%
N PAT24 ,6 74 38,231 -35%
Underlying NPAT38,422 46,396 -17%
NPAT Attributable
to Shareholders
5,235 19,412 -7 3 %
Underlying NPAT
Attributable to
Shareholders
18,982 27,57 7 -31%
Andy Borland (L) and Mike Petersen (R)
The graphs below show the Underlying
EBITDA and Underlying NPAT Attributable
to Shareholders trend for a 5-year period.
Overview – Positive Results in a Testing Year
Annual Report - Year Ended 31 December 2023
Managing Director and Chair's Report

1
Calculated as the difference between the closing share price on 29 February 2024 plus all net dividends paid (a total of $1.62 per share) and the IPO listing price of $1.60.
Esro Petfood
On 10 August 2023, Scales announced it had finalised
an agreement to expand the Global Proteins division
through the subscription for a 50 per cent shareholding
in a newly established petfood ingredient processing
operation, Esro Petfood. Our joint venture partner in the
business is Esro Food Group, a key operator in Europe’s
animal by-product processing with factories in the
Netherlands, Belgium and Spain. Esro Food Group is
owned by the Netherlands-based Rooijackers family,
the Fayman family (who Scales invested alongside
last year in their Australian business) and Rabobank
Investment, the investment franchise of Rabobank.
Esro Petfood is headquartered in the Netherlands, with
its first plant based in Belgium. The site was an existing
processing facility that was previously used by Esro
Food Group for edible by-product processing and has
been converted to a dedicated petfood ingredient
plant. The first processing line was commissioned in the
last quarter of 2023, with the plant commencing salmon
and beef processing sourced from the Netherlands.
This investment complements our existing petfood
ingredients businesses in the USA, New Zealand
and Australia and continues to demonstrate our
commitment to Global Proteins, in terms of both
expanding our geographical reach as well as the range
of products that we are able to supply.
We are delighted to welcome Esro Food Group
to the Scales Group.
Shareholder Returns
We continue to be conscious of the long-term return to our
shareholders. Shareholders who invested in our IPO in July
2014 will have achieved a 198 per cent return
1
on funds
invested to the end of February 2024. By comparison, an
investment in the S&P NZX50 would have delivered a 126
per cent return on funds invested over the same period.
Strategy
Scales’ Mission
To be the foremost investor in, and grower of, global
agribusinesses by leveraging its unique insights,
experience and access to collaborative synergies.
Scales’ Long-term Goal
To generate a long-run average 12.5 per cent ROCE across
the portfolio.
Corporate and Competitive
Strategies
Our investment pillars determine our portfolio & capital
allocation across 3 key divisions. While all divisions have
different business models, we are able to leverage our
knowledge, partnerships, and Group synergies to create
competitive advantages and generate sustainable value
for our stakeholders.
Managing Director and Chair's Report
Scales Corporation Limited

Strategic Update
We continued to proactively search for and review potential investment opportunities, both internal and external during 2023.
Our strategy is outlined below.
We have committed to refresh our Group strategy to integrate our climate assessment process, after we have set our greenhouse
gas emissions assurance base year in 2024. Embedding climate assessment into our strategic framework will allow us to test the
resilience of our existing strategy and also allows us to review our targets and reset them accordingly.
We were delighted to be nominated as a finalist in the Best Growth Strategy category for the Deloitte Top 200 awards in 2023. This
award recognises an organisation’s outstanding growth performance. Criteria include:
• Revenue and profit growth of the previous year
• Whether the growth appears to be sustainable
• Whether the growth is based on international business expansion
• The short and long-term advantages of growth for the organisation
This nomination provided us with positive recognition of the strategic direction being undertaken by the Group and we were proud to
be one of only 3 finalists.
Mission
To be the foremost investor in, and grower of, global agribusinesses by leveraging our unique insights,
experience and access to collaborative synergies
Goal
12.5% ROCE
Portfolio & Capital Allocation
Horticulture
LogisticsGlobal Proteins
Investment Pillars
People and
Partnerships
–People first approach
–Strong partnerships
across the value chain
–Leverage our internal
capability and skills
Sustainable Growth
–Sectors/businesses that
align to long term trends
–Businesses that
are protecting and
preserving their
resources
–Diversification of
customers/markets/
products
Operational Excellence
–Ability to add value
through innovation
and efficiency
–Consistent quality
and service delivery
through knowledge,
location and technology
Customer Focused
Innovation
–Product leadership -
development of
new products
–Customer intimacy -
integrated business
planning and
customisation to their
specific needs
Competitive Strategy
Product
–Investment in new petfood
ingredient products
–Develop broader species
mix in petfood ingredients
–Investment in new plant
varieties
–Redevelopment to
position variety mix
towards growth markets
Market/Channel
–Develop integrated
channels and business
plans with our petfood
customers
–Enter new markets for
our petfood ingredients
–Continue to develop
Mr Apple’s brand/sales
channels across Asia
markets
Infrastructure/Systems
–Investment in new
ERP systems across
Global Proteins
–Continual assessment
of orchard/post-
harvest location and
infrastructure
–Investment in new
processing technology/
automation (all divisions)
Resources
–Decarbonisation
roadmaps (all divisions)
–Improve water
efficiencies (all divisions)
–Improve orchard
practices to reduce
inputs (Mr Apple)
–Develop a Group-wide
people strategy
Annual Report - Year Ended 31 December 2023
Managing Director and Chair's Report

Specific Strategic Targets
TargetStatus
Group
Financial and operational
• Maintain financial returns in line with, or above,
industry returns
• Continue to seek acquisitive and organic growth
opportunities to expand the business
Excellent Progress
• Investment made in Esro Petfood
• Other acquisition and internal growth opportunities
regularly reviewed
Shareholder returns
• Continue to provide shareholders with an attractive
yield on dividends
• Deliver capital gains and shareholder liquidity
through careful strategic execution
Ongoing
• Interim dividend of 4.25 cents per share paid in January
2024, with second instalment to be reviewed and
advised on in early May 2024
• Group ROCE of 10.8 per cent
Sustainability
• Develop Group and divisional sustainability
strategies, including clear goals and targets
• Further develop and evolve our reporting and
measuring of key sustainability aspects affecting
Scales’ businesses
Good Progress
• First standalone CRD report to be released in 2024
• Positive progress on people strategy, particularly at
Mr Apple
• Progress on our water and decarbonisation initiatives
Global Proteins
Increase scale and expand offering
• Review strategic initiatives and consider organic and
acquisition opportunities to increase divisional scale
Excellent Progress
• Continued to benefit from diversified geographies and
proteins provided by divisional businesses
• Established the Esro Petfood joint venture
• Commissioned the Meateor Australia plant, with first
sales made towards the end of 2023
• Commissioned the first processing line at Esro Petfood
• Introduced new blending capability in New Zealand and
the USA
• Ongoing global growth opportunities being actively
investigated
Horticulture
Operational and branding
• Reach 4 million TCEs of our own-grown apples
• Continue to increase market penetration into Asia
• Continue to develop the Mr Apple brand, particularly
within our key markets of Asia and the Middle East
• Acquire new Plant Variety Rights (PVRs) to meet
emerging needs
• Redevelop lower-performing orchards and varieties
into higher value crops
Ongoing
• 2.73 million TCEs exported
• Significant proportion of sales made to the Asia and
Middle East markets
• A wide variety of marketing and branding initiatives
undertaken, particularly across the Asia and the
Middle East region
• Continued growth in sales of PVRs such as Dazzle™
and Posy™
• Development of Dazzle™ and Posy™ accelerated
during 2023
Logistics
Expand logistics offerings
• Develop scale to utilise the expertise and capacity
within the team
Ongoing
• Strategic benefit of in-house logistics provider reiterated
during period of geopolitical tensions in key trade routes
Scales Corporation Limited
Managing Director and Chair's Report

Sustainability
Scales is focused on:
• Our broader obligations as a responsible corporate citizen
• The desire of our stakeholders to receive clear reporting
on our environmental footprint and sustainability
improvements
• Our ability to better identify and manage all risks (as well
as opportunities) facing the business and align our future
strategic plans
The effects of Cyclone Gabrielle reinforced the commitment
and resilience of our teams. Whilst we were thankful that
all our team members were safe and well following the
Cyclone, there were many within the Hawke’s Bay community
that were not as lucky. We supported our staff, including
our Recognised Seasonal Employer (RSE) workers, in the
weeks and months following Cyclone Gabrielle with tailored
assistance, counselling, well-being workshops, replacement of
possessions and medical health checks. At Mr Apple, this has
been accompanied by progress made on its people strategy,
including annual leadership programmes and new digital
systems.
Progress across the environment categories has focussed
on water and decarbonisation initiatives, including upgrade
of the boiler at Shelby’s Amarillo plant, refrigeration upgrades
at Meateor NZ and new electric forklifts, installation of a new
condensing boiler unit and CO
2
refrigeration at Meateor
Australia. We have also implemented water efficiency
initiatives, including commissioning a new water reticulation
system at Mr Apple. The latter system is reducing water usage
at the Whakatu packhouse.
Our summary Sustainability Report is provided in the next
section, and we will be publishing our inaugural standalone CRD
report this year. We hope that you will take the time to read both
of these reports.
Scales’ Team
Our people are the lifeblood of our operations and our
success is largely down to the skill and ability of our staff and
management teams. We believe that we have a strong and
unique culture and it is important to us that we nurture highly
inclusive workplaces where our people can excel personally
and professionally, whilst contributing to the Group’s success.
Health and safety continues to be a primary focus for us
and we are proud of our health and safety programmes.
We welcome feedback on this as well as any other human
resource matters, and we will continue to make improvements
as our people are our number one priority.
It has been inspiring to see the results of the hard work of
everyone this year despite the adversity that they faced. The
tenacity and resilience of everyone has been impressive.
Accordingly, on behalf of the Board, we would like to say thank
you to each and every Scales team member for their hard
work. Without them, we would not be in the positive position
that we are in.
Appropriately Incentivising
our Team
Compensation of the Scales’ management team continues to
link remuneration with the delivery of the strategies as directed
by the Board, drive a performance-led culture and connect the
long-term sustainable success of the business with our values.
It also aligns to retaining and developing high-performing team
members as well as promoting positive personal performance.
We have therefore maintained a strong incentive-based
remuneration scheme, with shorter term incentives being
balanced alongside long-term business and shareholder
interests. Our remuneration philosophy and analysis of
executive remuneration is detailed more fully in the Corporate
Governance Statement on pages 94 to 112.
Board Succession – Mike Petersen
As announced last year, Mike Petersen was appointed as the 10
th
Chair of Scales at the
2023 Annual Shareholders’ Meeting (ASM), taking over from Tim Goodacre.
Mike has over 30 years’ management and governance experience in the agribusiness
sector, including as New Zealand’s Special Agricultural Trade Envoy for 6 years. In this
role he advocated for New Zealand’s agriculture trade and market access interests and
identified opportunities for New Zealand to commercialise its agricultural expertise
offshore. Mike also has advisory roles with a number of other privately-owned companies.
We are delighted to welcome Mike to the Board and to be able to benefit from his
knowledge. Additional background on Mike is provided in our Leadership Profiles section.
Mike Petersen
Annual Report - Year Ended 31 December 2023
Managing Director and Chair's Report

Income Statement
2023
$000’s
2022
$000’s
Revenue565,356 619,173
Underlying EBITDA6 7, 5 1 4 77,893
Underlying EBIT48,061 58,207
Underlying NPAT38,422 46,396
After tax impact of:
Non-cash, NZ IFRS and other adjustments(13,748)(8,165)
N PAT24,674 38,231
Underlying NPAT Attributable to Shareholders18,982 2 7, 5 7 7
NPAT Attributable to Shareholders5,235 19,412
Capital employed440,958 445,670
Return on capital employed10.8%13.5%
Group Financials
Summary
In a unique and testing year, Scales delivered admirable results for the year ended 31 December 2023.
Underlying NPAT Attributable to Shareholders was $19.0 million and Reported NPAT Attributable to
Shareholders was $5.2 million. Revenue was $565.4 million and Underlying EBITDA was $67.5 million.
Additional detail of the performance of each division is provided in the Divisional Overview section.
Scales Corporation Limited
Managing Director and Chair's Report

Capital Management
ROCE is a measure of how efficiently we are generating a return on our assets. It continues to be an important performance metric
for each division and the Group and is at the heart of how we monitor the performance of the portfolio and make decisions around
capital expenditure. Prior to committing to an investment in assets, we need to be confident that we will generate a return that meets
or exceeds our targets.
The ROCE targets vary by division, given each division’s specific asset and risk profiles. In 2023, ROCE was affected by lower earnings.
20232022
ROCE
Global Proteins46.8%67.4%
Horticulture-1.0%-0.4%
Logistics39.4%61.1%
Group10.8%13.5%
Target12 .5%12 .5%
Group capital employed decreased by $4.7 million in 2023, primarily as a result of goodwill impairment and asset write-downs in the
Horticulture division.
Scales’ Reported basic earnings per share for the year ended 31 December 2023 was 3.7 cents per share (2022: 13.7 cents per
share)
1
. Scales’ Underlying basic earnings per share for the year ended 31 December 2023 was 13.4 cents per share (2022: 19.5 cents
per share.
Financing
Average Net Debt for the year was $8.9 million (2022: Net Cash $21.9 million), a reduction of $30.8 million, with the movement
primarily relating to investments in Fayman, Meateor Australia and Esro Petfood as well as Cyclone-related capital expenditure.
Hedging Strategy
As an exporter, we continue to have significant exposure to foreign exchange movements. This is most prevalent in Mr Apple, with
our Global Proteins and Logistics divisions also affected. We also have exposure to movements in interest rates, both on borrowings
and deposits.
Scales has a Board approved Treasury Management Policy, which governs how all foreign exchange, interest rate and related
activities are conducted. This policy is reviewed biennially.
Under this policy we may take foreign exchange cover for Mr Apple for up to 60 months forward using a variety of foreign exchange
instruments (including options and forward contracts). Scales maintains a blend of instruments. In addition, Scales manages the
cover levels for seasonal and market variations for future years.
We continue to have a natural hedge covering some of our US dollar exposure as international shipping is payable in US dollars. We
take cover on the remaining expected net US dollar, Euro, British pound and Canadian dollar exposures.
In general, Global Proteins and Logistics take foreign currency cover once exposures have been confirmed.
The average conversion rate of Mr Apple’s main foreign
currency exposures since 2020 were as noted below.
2023202220212020
USD.6515.6588.6697.6424
EUR.5452.5449.5455.5671
GBP.4912.4962.5027.5101
CAD.8407.8597.8651.8657
1
Based on the weighted average number of ordinary shares
Foreign currency
In 2023, Mr Apple’s net foreign currency
exposures were as shown below.
Euros 12%
Canadian dollars 2%
US dollars 79%
British pounds 7%
Annual Report - Year Ended 31 December 2023
Managing Director and Chair's Report

The hedging position for Mr Apple’s main foreign currency exposures, as at 29 February 2024, was:
20242025202620272028
USD
% cover of expected exposure100%85%74%51%39%
Average rate of cover.6358.6307.6110.5949.5941
EUR
% cover of expected exposure86%81%67%39%18%
Average rate of cover.5475.5449.5347.5419.5130
Interest rates
In addition, we take out interest rate swaps and forward rate agreements, which provide some certainty on interest costs on
Scales’ long-term and short-term borrowings. We funded the US dollar investment in Shelby via a US dollar term loan to provide
a hedge on the investment. Similarly, we funded the Fayman and Meateor Australia investments via an AUD term loan. As at
31 December 2023 our US dollar term debt was 47 per cent hedged by interest rate swaps.
Dividend
A final 2022 fully imputed cash dividend of 9.5 cents per share (a gross amount of 13.2 cents per share) was paid on 7 July 2023.
Together with 2022 interim dividends of 6.0 cents per share (a gross amount of 8.3 cents per share) that was paid on 16 January
2023 and 3.5 cents per share (a gross amount of 4.9 cents per share) that was paid on 31 March 2023, this brought the annual
dividends for 2022 to a total of 19.0 cents per share (a gross amount of 26.4 cents per share).
A fully imputed initial interim 2023 cash dividend of 4.3 cents per share (a gross amount of 5.9 cents per share) was declared
on 8 December 2023 and paid on 18 January 2024. We will review, and advise on, a final dividend for 2023 in early May 2024.
As always, any dividend is subject to Board approval. It is standard practice for the Directors to consider all aspects of the
Group’s performance and financial position prior to declaring any dividend. Total dividends are expected to be between
50 per cent and 75 per cent of Underlying NPAT Attributable to Shareholders.
Capital Expenditure
Capital expenditure in 2023 was $17.1 million, an increase of $1.5 million on the prior year (2022: $15.6 million).
A significant proportion of 2023 capital expenditure was Cyclone-related, principally in respect of the replanting and grafting
of trees. Other material capital expenditure related to capital work-in-progress at Shelby, more details of which will be provided
once complete.
2023
$000’s
2022
$000's
Operational capital expenditure
Global Proteins2 ,622 1,631
Horticulture2,291 2 ,607
Logistics234 168
Other137 26
Total operational capital expenditure5,284 4,431
Margin sustainability capital expenditure
Horticulture944 6,564
Total margin sustainability capital expenditure944 6,564
Growth capital expenditure
Global Proteins3,535 1,860
Horticulture210 2 ,730
Total growth capital expenditure3 ,74 5 4,590
Cyclone capital expenditure
Horticulture7,162 -
Total Cyclone expenditure7,162 -
Total capital expenditure1 7,1 3 5 15,585
Scales Corporation Limited
Managing Director and Chair's Report

Outlook
Whilst the start of 2023 presented us with some challenges, we finished the year positively, with earnings at the top end of
our market guidance. Our balance sheet remains strong and our divisions did an admirable job of executing their respective
strategies during testing times.
Within the Global Proteins division, we anticipate that our petfood customers will continue to rebalance their inventory levels
to pre-COVID levels. Meateor Australia and Esro Petfood continue to progress through their transitional and start-up phases
respectively, and we look forward to realising exciting opportunities from these key markets in the long-term. We also continue
to investigate both internal and external expansion opportunities globally.
For Horticulture, the 2024 apple harvest has commenced with picking and packing operations underway. Current crop
indications are positive and there is strong initial demand for our early fruit.
Cyclone Gabrielle touched the lives of a significant number of our staff members, and many more people within our Hawke’s Bay
community. Their hard work in the face of adversity, and the willingness to go above and beyond, was testament to the ‘Stronger
Together’ culture that exists within the Group as a whole.
We are also delighted to advise that the Board has reappointed Andy Borland for a further 5-year term as Managing Director.
Andy’s contribution to the Group has been significant and we look forward to a continuation of this work over the following years.
On behalf of the Board, we would like to thank all our management and staff, fellow Directors, suppliers, customers and other
stakeholders for their hard work, support and commitment in our 112
th
year of trading.
Mike Petersen
Chair
18 March 2024
Andy Borland
Managing Director
Annual Report - Year Ended 31 December 2023
Managing Director and Chair's Report

Forward
Together
Sustainability Report
Sustrainability Report
Scales Corporation Limited

Introduction
2023 was a disruptive year for Scales with Cyclone
Gabrielle creating devastating impacts in Hawke’s Bay.
Whilst the focus has been on the recovery and supporting
our community, we have made good progress on our
sustainability agenda by preparing our first Climate-Related
Disclosures (CRD) report, which will be published by 30 April
2024 (https://scalescorporation.co.nz/sustainability), hiring
our first Group Sustainability Manager and working to develop
a more thorough greenhouse gas emissions inventory.
2023 sustainability snapshot:
• Prepared our first mandatory CRD report
• Developed our first Sustainability Policy and Emissions Inventory Policy
• Mr Apple’s sixth year in the Toitū Carbon reduce programme
• Donated $250,000 to the Cyclone Gabrielle recovery in Hawke’s Bay
• Reinstated our regenerative trial on 2 Mr Apple orchards
• Mr Apple reduced its Lost Time Injury (LTI) rate by 43 per cent since 2022
• Increased female leaders / management by 15 per cent since 2022
• Completed several decarbonisation and water reduction initiatives
Materiality
Considering the views and perspectives of Scales’ internal and external stakeholders is important to us, which is why Scales
has committed to periodically conduct materiality assessments. We define materiality through the Global Reporting Initiative
(GRI) framework of double materiality, which considers both financial and non-financial impacts to a wider stakeholder group.
Our last assessment was in 2021, conducted by thinkstep-anz. This assessment gave us an extensive list of material topics,
which we then narrowed down to key areas (see below). We will be updating our materiality assessment prior to our strategic
refresh in 2025.
>1,200
RSE workers
43%
Female senior leadership /
management staff
36%
Permanent female
staff Scales-wide
~600
Permanent staff members
47 years
Longest serving employee
39
Operational sites
1
1
Owned or leased.
People
People affordability
Labour security
Health, safety &
labour practice
Marketplace
Market access
Consumer preferences
Innovation
Regulation
Environment
Water management
Carbon emissions
Climate conditions
& weather events
Biodiversity
Corporate
Brand reputation
Annual Report - Year Ended 31 December 2023
Sustrainability Report

People
Mr Apple People Strategy and Initiatives
As the largest employer across Scales group with over 2,000 staff at peak season, it is important for Mr Apple to attract,
retain, create a positive work culture and drive high performance. To best support their employees, Mr Apple formalised its
5-year people strategy at the end of 2021, making great progress since then.
2023 Mr Apple initiatives and 2024 goals are outlined below:
PillarPurpose2023 initiatives 2024 goals
People and
culture
digitalisation
Automation of
people processes
and transactional
people activity
Implementation of two modules
(remuneration and engagement surveys)
of the new Human Resource Information
System (HRIS) and full roll out of the
Applicant Tracking System (ATS)
RSE recruitment integrated
into the ATS system
(centralised recruitment
across the 2,000+ staff)
Attraction
and retention
Create and launch a
brand narrative that
aligns to our Employee
Value Proposition
(EVP) and connects to
talent by engaging with
schools, polytechnics and
universities
Embedding our domestic brand,
which is built around our EVP
Increased online presence across
multiple channels (LinkedIn,
Facebook, Instagram, etc)
Market review of ATS providers
Programmes run in partnership
with industry bodies
Widening our visibility within
the community both inside
and outside the industry and
leveraging our partnerships
Leadership
development
Identify and develop the
skills of current and future
leaders to ensure there is
a strong pipeline of talent
and a positive culture
Programmes rolled out to business
support services personnel, with
improved content for our second
year course for our orchards and
post-harvest staff
Continue to embed the Mr Apple
Leadership Programme in the
business and measure success
Build and deliver bite-size
training to provide ‘just in time’
upskilling in people skills (e.g.
respect & dignity, recruitment)
Succession
planning
and talent
development
To ensure that Mr Apple
continues to run smoothly
and without interruption
after critical talent move
on to new opportunities,
retire or other
Mapping talent across orchards for
succession planning
Mapping talent across post-
harvest and business support
services (IT, People & Culture,
Finance, Sales, Marketing,
Logistics and Operations, and
identify successors)
Performance
and reward
management
Develop a framework to
improve performance
measurement and
monitoring, and drive a
high-performance culture
Introduced a pay-for-performance
model, implemented pay principles
and automated the end of year
remuneration process
Implementation of the
performance and reward
management framework via
our HRIS (connected to our
pillar of Digitisation)
Career pathways
and personal
development
Help employees to grow
and shape their careers
on their competencies
and interests
Since 2021, Mr Apple has
implemented a job-sizing
methodology
Develop career pathways via
the ‘My Career’ hub on Mr
Apple’s intranet
Scales Corporation Limited
Sustrainability Report

Other initiatives implemented in 2023 include:
• Internal communications: built Mr Apple’s first intranet
platform, The Crunch, in 2022. In 2023, Mr Apple made
this accessible to all permanent, seasonal and RSE staff,
to connect and inform them on key company initiatives,
updates, celebrations and safety information
• Sow the Seed: a 6-month pilot program giving 2 year-12
students the opportunity to understand the horticulture
industry. They will gain exposure to career paths on-
orchard, post-harvest and within our business support roles
Cyclone Gabrielle
Hawke’s Bay suffered significant loss and disruption as a result of
Cyclone Gabrielle in February 2023. Three of Mr Apple’s orchards
suffered extensive damage and a 4th orchard was moderately
affected. The recovery effort required was larger than predicted
and extensive orchard remediation was undertaken by our teams.
The primary focus has been on supporting our people and
community, with initiatives including:
• Committing $250,000 in donations to the recovery, with
donations being distributed to the Evergreen Foundation and
the Rural Support Trust, which provide a wide range of support
services for Cyclone-affected families and communities
• Providing tailored assistance to staff members who were
particularly affected
• Offering third-party facilitated wellbeing workshops to all staff,
providing specialist trauma advice and tools
• Providing financial contributions towards replacing lost
belongings and offering free legal services for insurance
issues
• Supporting our RSE teams post-cyclone by providing
counselling from Vitae (an Employee Assistance Programme
provider)
• Immediately housing displaced RSE workers at our
Hastings accommodation centres and providing them
with new personal possessions
• Partnering with the District Health Board to undertake
medical health checks for our RSE workers, particularly
those involved in evacuations
• Providing laundry services to the community, keeping
our facility operating for 6 days a week with the help
of volunteers who delivered ~500 loads a month to affected
families
• Assisting other growers with their harvest by lending machinery
and helping with their remediation works where possible
Health & Safety
For Scales, health, safety and wellbeing is one our top priorities
and continues to be a focus for our everyday operations.
Improvements continued to be made across the Group, with
Mr Apple shifting to a Health, Safety and Wellbeing Partnership
model, which meant more on-site support and proactive action,
leading to a reduction in its LTI rate of 43 per cent since 2022.
This was supported by the ongoing use of an in-house Injury
Management Specialist (physiotherapist) to work with on-
orchard and post-harvest teams on injury prevention while also
supporting injured staff on a quicker recovery.
Community
Mr Apple and Napier Port joined together in 2023 to help
support the health of the waterway that runs along the back of
Mr Apple’s Whakatu property, Graeme’s Drain. Native plants
were donated by Mr Apple, which now line the strip and will
improve the stream health and water quality. The plants will
help filter out sediment and unnecessary nutrients before
they go into the water, stabilise the bank to reduce erosion and
provide shade to keep the water temperature healthy.
Mr Apple continues to support the community through the
following initiatives:
• Donating non-export apples to food banks throughout the
country
• Providing apples to sporting events including the Peak
Trail Blazer
• Hosting a yearly planting day, with RSEs volunteering
their time
Additionally, Mr Apple continues to offer ongoing
assistance to staff members who were impacted by
Cyclone Gabrielle. We hosted an end of year function with
around 350 permanent staff who gave donations, which
were distributed to individuals and families in need.
RSE Spotlight
Mr Apple’s RSE strategy is built around partnering with
Pacific Island governments to develop recruitment plans
that can meet the goals of their respective communities
and Mr Apple. Mr Apple develops and maintains strong
bilateral links with the governments from the 8 Pacific
Island countries it employs from and is exploring ways to
enhance the strength of these partnerships.
One example has been our partnership with the Fijian
Government to select workers from communities in need.
One of these communities is Kia Island in the very north of
Fiji, which was struck by category 5 Cyclone Yasa. Mr Apple
was able to offer employment to a team from the island,
which will support the rebuild of their community.
Supporting the Hastings –
Falealili Partnership
Mr Apple has employed Samoan workers since the
beginning of its participation in the RSE scheme. Over
this time we have developed a strong relationship with the
communities of Falealili District, with both communities
having benefited from this arrangement. The Mayor of
Hastings, To’asavili Sandra Hazlehurst, has received a
chiefly title and signed a sister city agreement with the
district of Falealili, further strengthening the relationship
with this community.
Annual Report - Year Ended 31 December 2023
Sustrainability Report

Having a global market presence across multiple sectors means Scales needs to adapt to
changing market requirements and customer demands. Scales will continue to invest in
infrastructure, people, systems and processes to produce safe and sustainable products.
Marketplace
Certifications and Audits
Completing sustainability audits is essential for promoting transparency, accountability and continuous improvement in
an organisation’s sustainability performance. Accordingly, our business units are engaged in the following programmes:
• Meateor New Zealand and Meateor Australia complete regular Sedex Members Ethical Trade Audit (SMETA) and
Ecovadis audits, measuring their environmental, social and ethical performance
• Mr Apple completes regular audits from Brand Reputation through Compliance (BRC) and GLOBALG.A.P. (GG):
–Updated versions of the Global Food Safety Initiative audits (BRC and GG) have shown increased interest in both the
ethical and environmental aspects of the audits, along with an increased focus in the food safety culture of the business
–Customer and market audits have increased following the removal of COVID restrictions
Scales Corporation Limited
Sustrainability Report

Environment
In 2023 Scales has focused on building our processes and upskilling our business
units on the requirements of the new mandatory CRDs. We have now built this into our
annual processes, which will result in climate assessments being integrated into our
group strategic frameworks.
Looking to 2024, Scales will be focusing its efforts on
completing a Scope 3 screening exercise as we establish our
emissions base year. Following this, we will refresh our Group
strategy, aligning appropriate targets. This work will build
on the decarbonisation roadmaps and water footprints we
developed in 2022. While targets will not be set until 2025,
after our assurance base year, the business units have been
using the roadmaps to begin their decarbonisation journey.
Meateor New Zealand has completed a number of initiatives
contributing to a reduction in emissions and leading to more
efficient factories:
• Installed LED lights in the Dunedin plant, replacing neon units
• Installed a new refrigeration plant in Hastings for its plate
freezers. This has the potential for heat recovery, reducing
gas usage in the future
• Moving to a lower Global Warming Potential (GWP)
refrigerant for its chiller unit
Scales Logistics is trialling a partnership with Future Post,
a company that recycles domestic and commercial waste
plastic into premium products, to take a portion of its plastic
packaging for recycling. Future Post partners with Kilmarnock
Enterprises, a social enterprise creating employment and
development opportunities for people with intellectual
disabilities in Christchurch. Kilmarnock Enterprises accepts
plastic from Scales Logistics, which is baled before delivery
to Future Post, who recycle it into premium fencing. The
fencing is designed to have a range of performance and
environmental benefits and can be used across operations
from marine to agriculture. Scales is investigating how we
can expand this relationship to other business units to divert
more plastic waste from landfill.
Shelby installed a new boiler at Amarillo, completed in August
2023, which increased the fuel utilisation efficiency of the
boiler by 18 per cent. In addition, Meateor Australia’s newly
commissioned plant in Melbourne included initiatives such as
electric forklifts, the installation of a condensing boiler unit to
reduce the water heating requirement and a CO
2
refrigeration
system for the plate freezers.
Regenerative Trial
Mr Apple continues to focus on its pest and disease
strategy with a regenerative planting trial. The trial began
on Kinross Orchard in 2022 although this was unfortunately
damaged by Cyclone Gabrielle. However, Mr Apple
restarted the trial in December 2023, reinstating Kinross
and establishing Blyth Orchard with 4 inter-row treatments.
The potential benefits we are seeking to prove include
increased soil organic matter together with improved
nutrient and water holding capacity. This will hopefully
improve drainage, the overall health of the trees and
reduce required orchard inputs.
Testing in December 2023 and February 2024 will give us
baseline data for comparison of soil characteristics. Fruit
quality will then be tested in May 2024.
Water efficiencies
Mr Apple is Scales’ largest water consumer, accounting for
96 per cent of water usage across the Group. Mr Apple has
already made water reductions, largely from the installation
of its water reticulation system at its Whakatu packhouse,
which was fully operational in 2023. This recycles water
from the processing line, filtering it through five tanks.
Additionally, further water metering was installed on-
orchard to continually improve our data.
We continue to investigate ways we can reduce our
freshwater consumption, improve water quality and recycle
water where possible.
Annual Report - Year Ended 31 December 2023
Sustrainability Report

Structure
builds
confidence
Divisional Overview
Divisional Overview
Scales Corporation Limited

Global Proteins
Overview
Our Global Proteins division converts agricultural by-
products into valuable food commodities. The division
comprises 6 business operations:
• Meateor NZ – 50 per cent ownership of a processor and
marketer of petfood ingredients for the global petfood
industry with processing plants in Whakatu and Dunedin
• Meateor International – 100 per cent ownership of a
supplier and marketer of petfood ingredients from
Australia and other markets
• Shelby – 60 per cent ownership of a US procurer, processor and
marketer of ingredients for the petfood industry
• Fayman – 50 per cent ownership of the Australian operations of
Fayman International and 42.5 per cent ownership of ANZ Exports, a
global exporter of edible proteins sourced principally from Australia
• Meateor Australia – 33.33 per cent ownership of a new petfood
protein manufacturing facility in Melbourne
• Esro Petfood – 50 per cent ownership of a newly established
petfood ingredient processing operation in Europe
This section provides a summary of each of our 3 operating divisions, including
their performance and key operating statistics. In line with our Group results,
we focus on the Underlying financial performance of our business divisions,
excluding certain non-cash NZ IFRS and other adjustments.
Meateor NZ*
Petfood ingredient
processor and marketer,
New Zealand
(50%)
Shelby Foods**
Petfood ingredient
procurer, processor
and marketer, USA
(60%)
Fayman*
Edible by-products
exporter, Australia
(50% Fayman International /
42.5% ANZ Exports)
Esro Petfood*
Petfood ingredient procurer,
processor and marketer.
Europe
(50%)
Meateor
International**
Petfood ingredient supplier,
Australia & other markets
(100%)
Meateor Australia*
Petfood protein
manufacturer, Australia
(33.33%)
*Equity accounted.
** Fully consolidated into Scales’ financial results, with Shelby non-controlling interest of $19.4 million deducted from NPAT (2022: $18.8 million)
Annual Report - Year Ended 31 December 2023
Divisional Overview - Global Proteins

20232022
Key Operational Metrics
Petfood ingredients volume soldMT1 3 7,47 7 158,595
Edible proteins volume sold*MT85,900 9,047
Financial Performance$000's$000's
Global Proteins revenue298,547 319,923
Underlying Global Proteins EBITDA 54,520 60,158
Depreciation and amortisation(791)(747)
Depreciation of right-of-use assets(66)(64)
Underlying Global Proteins EBIT53,662 59,347
Global Proteins EBITDA 52,245 58,913
Global Proteins EBIT51,388 58,102
Capital employed120,848 106,605
ROCE46.8%67.4%
*2022 - 2 months only
NB: A reconciliation of Underlying to Reported profit measures follows this Divisional Overview section.
Operational Summary
Global Proteins produced a solid performance in a year
when its petfood ingredient customers were rebalancing
their inventories to lower, pre-COVID levels and we were
undergoing the first year of our Australian transition.
This resulted in a 13 per cent decrease of petfood
ingredient volumes sold, from 158,595 MT to 137,477 MT.
We are also pleased to provide details of the edible
proteins volumes sold by Fayman, with its volumes for
its first full year of trading with us being 85,900 MT.
Operational and Financial Performance
The table below outlines key operational metrics and the summarised financial performance for Global Proteins.
Volumes Sold (MT 000s)
2019202020212022*2023**
111.0
115.7
149.2
158.6
9.0
1 3 7. 5
85.9
Edible ProteinsPetfood Ingredients
* 2022 edible proteins volumes are for a 2 month period.
** 2023 petfood ingredient volumes exclude those sold at Meateor Australia and Esro Petfood, both of which were operational by the end of 2023.
Scales Corporation Limited
Divisional Overview - Global Proteins

Financial Summary
Despite the market conditions, the division performed well,
adjusting its operations accordingly. Revenue was $298.5
million, a 7 per cent decrease on prior year (2022: $319.9
million), whilst Underlying EBITDA was $54.5 million, a 9 per
cent decrease (2022: $60.2 million). The division’s profit
margins remained in line with last year.
Fayman produced a pleasing first full year result and we believe
that, as an edible protein exporter, it complements our petfood
ingredients operations well.
We also continued to invest in our 2 newer joint ventures,
Meateor Australia and Esro Petfood. Whilst these are currently
in a start-up stage, we believe these investments will be
extremely strategically important for the long-term.
Margin Performance
The graph below shows the growth in unit revenue and
Underlying EBITDA for petfood ingredients over the last 5 years.
The key drivers of this positive performance have been:
• An increase in the percentage of processed product versus
traded product, which drives greater margin
• A change in species mix to higher margin products (e.g. beef)
• The introduction of blending and new product development
at key US facilities, leading to improved product mix,
increased yields and higher margins
• Leveraging of our supply chain excellence and reliability
during COVID to drive overall division performance
• The ability to manage supply / demand dynamics
maintaining margin despite lower volumes in 2023
EBITDA / kg (rhs)Revenue / kg (lhs)
Petfood Ingredients Revenue and Underlying EBITDA / kg
20232019202020212022
$2.56
$1.83
$ 1.79
$2.35
$1.69
$0.00$0.00
$0.50
$0.05
$1.00
$0.10
$1.50
$0.15
$2.00
$0.20
$2.50
$0.30
$0.25
$3.00$0.40
$0.35
Industry and Strategy Update
The petfood market is large, growing and underpinned by
influential global trends:
• There is a large and growing pet population linked to socio-
demographics changes and growth in emerging markets
• There is increasing premiumisation driven by rising
incomes and humanisation of pets
• It has proven to be resilient to recessions and downturns
• The US has become the largest exporter of petfood
products to China
This growth, and related downstream investment in
capacity, has led to concerns around supply chain reliability
and supply capacity.
As a result, we believe that Scales is uniquely positioned to
capture this opportunity due to our track record, investment
strategy, supply chain excellence and business model.
Annual Report - Year Ended 31 December 2023
Divisional Overview - Global Proteins

Strategic Milestones Achieved During 2023
During 2023, the Global Proteins division made significant progress towards it strategic goals. These included:
• Commissioning the Meateor Australia plant, with first sales being made in the last quarter of 2023
• Establishing the Esro Petfood joint venture and commissioning the first processing line in Belgium in the last quarter of 2023:
• The plant has already commenced salmon and beef processing, sourced from the Netherlands
• Other locations and site optimisation will be investigated throughout 2024
• Introducing new blending capability:
• A blending project in Hastings was completed
• A new blending line in the Dodge City toll processing plant was commissioned
We look forward to updating you on our progress in 2024.
Salmon processing at Esro Petfood
Esro Petfood
Meator Australia
2024 Outlook
The outlook for Global Proteins is positive with 2024 starting well. However, we anticipate there will be some
further re-balancing of inventories amongst petfood manufacturing customers in the first half of 2024.
Whilst Meateor Australia and Esro Petfood made significant progress in 2023, both these operations have some
headway to make before they complete their start-up phases. However, once concluded, we believe there will be a
number of exciting opportunities to be realised, and we will work closely with our partners on these.
We look forward to providing further updates on the division’s strategic, operational and financial progress in 2024.
Scales Corporation Limited
Divisional Overview - Global Proteins

Horticulture
Overview
Our Horticulture division comprises:
• Mr Apple – New Zealand’s largest fully vertically integrated apple business, based in Hawke’s Bay
• Fern Ridge – a fresh produce exporter in Hawke’s Bay
• Profruit – 50 per cent ownership of a manufacturer of high-quality apple, kiwifruit and pear juice
concentrates, located in Hawke’s Bay
During 2023, we operated 3 packhouses. Each of our packhouses is equipped with high-speed
optical grading machines. Mr Apple also operates 6 coolstores.
Cyclone Gabrielle – Remediation of our Damaged Orchards
Many images have been publicised showing the effect of Cyclone Gabrielle on Hawke’s Bay, and the following are
just a couple of the photos that capture the condition of our orchards immediately following Cyclone Gabrielle and
their current condition, post-remediation.
The ’before’ photo is an example of how the land and trees were devastated, which was upsetting and distressing
to everyone involved.
Thanks to the incredible hard work and tenacity of our Horticulture team, together with support from local and
national governments, most of our orchards have now been remediated and, looking at the ‘after’ photo, it could
be hard to believe that the Cyclone had such a devastating effect. Encouragingly, only around 5 per cent of the
land that we have retained is not currently useable.
Fortunately, the impact of Cyclone Gabrielle is largely expected to be limited to the 2023 season, with volumes
and performance in 2024 anticipated to return to more normal levels.
BeforeAfter
Annual Report - Year Ended 31 December 2023
Divisional Overview - Horticulture

Mr Apple - Sales by Region (TCEs)
Asia & Middle EastEuropeNorth AmericaUK
2022
3
3
8
7
77
75
12
15
2023
Markets
Our apples are sought after around the world, with Mr Apple selling to approximately 115 customers in around 28 countries.
Asia and the Middle East continue to be our largest markets, accounting for approximately 77 per cent of export sales
volumes (2022: 75 per cent).
In 2023, our sales were supported by targeted marketing
activities across the Asia and Middle East regions, but with a
specific focus on China and Vietnam.
In addition to development of the Mr Apple brand, our
emphasis is on the development of high value variety brands
such as Dazzle™, Posy™ and Diva™, which achieve significantly
higher NZD FOB prices than traditional apples. Development
of these varieties was accelerated during 2023 following the
Cyclone, and we anticipate ongoing increases in average
prices as the plantings mature.
Our marketing activities included:
• Retail customers supported with instore sampling activity,
branded point-of-sale displays and packaging material
• Market launches with wholesale customers for key apple
varieties
• Growing our digital and social media presence in key markets,
using data to drive efficiency
• Season launch events undertaken to complement brand
advertising
• Partnerships with social media influencers
• Activities with key opinion leaders and social media influencers,
providing e.g. apple and merchandise as prizes and gifts
Marketing and Branding Developments
Scales Corporation Limited
Divisional Overview - Horticulture

Sampling of 12 varieties of apples at iconic locations in Hanoi, Vietnam
A 5km run held in conjunction with KEEP, a running app in China, which has over 200 million users
Gift packs sent to key opinion leaders, Vietnam
Annual Report - Year Ended 31 December 2023
Divisional Overview - Horticulture

Financial Performance and Key Operating Statistics
Summary Performance
The table below shows the financial performance of our Horticulture division for 2023 and 2022.
2023
$000's
2022
$000's
Horticulture revenue209,939 228,854
Underlying EBITDA
Mr Apple11,286 14,649
Fern Ridge1,786 1,263
Profruit1,762 1,069
Underlying Horticulture EBITDA14,834 16,980
Depreciation and amortisation(9,687)(9,645)
Depreciation of right-of-use assets(8,071)(8,393)
Underlying Horticulture EBIT(2,923)(1,058)
Horticulture EBITDA4,493 10,332
Horticulture EBIT(13,265)(7,707)
Capital employed292,615299,837
ROCE-1.0%-0.4%
NB: A reconciliation of Underlying to Reported profit measures follows this Divisional Overview section.
The Horticulture division generated a very commendable result given the physical, financial and volumetric impacts of
Cyclone Gabrielle. Volumes were lower due to the Cyclone, resulting in a decline in revenue and Underlying EBITDA.
However, stronger sales in the second half of the year together with higher in-market prices helped to offset the lower
volumes. Margins remained in line with 2022.
Both Profruit’s volumes and profitability were steady, with our share of earnings being $1.8 million (2022: $1.1 million).
Divisional Overview - Horticulture
Scales Corporation Limited

Divisional Overview - Horticulture
Annual Report - Year Ended 31 December 2023

20232022202120202019
Orchard
Total planted orchard (at time of harvest)
1
Ha.1,150 1,167 1,201 1,186 1,158
Fully mature equivalent planted orchardHa.1,050 1,024 1,050 1,028 1,023
Apples picked (Mr Apple orchards)TCE 000s3,872 4,281 4,757 5,119 4,841
Apples packed (Mr Apple + external growers
(Hawke's Bay))
TCE 000s3,330 3,960 4,430 4,858 4 ,747
Exported volume
Mr AppleTCE 000s2 ,733 3,324 3,651 3,915 3,822
External growersTCE 000s1,187 1,256 1,332 1,824 2 ,132
TotalTCE 000s3,920 4,580 4,983 5,73 9 5,953
Mr Apple packout %%71%78%77%76%79%
Total NZ productionTCE 000s1 7, 2 6 4 18,777 19,666 22,199 2 1,755
Mr Apple own-grown volume share of NZ production%15.8%1 7.7 %18.6%1 7.6 %1 7.6 %
Profruit
Juice concentrate sold
litres
000s
5,783 5,74 8 6,497 6,544 6,170
As previously mentioned, volumes in 2023 were affected by Cyclone Gabrielle:
• Gross production was down 10 per cent to 3.87 million TCEs (2022: 4.28 million TCEs)
• Own-grown export volumes were down 18 per cent to 2.73 million TCEs (2022: 3.32 million TCEs)
• Total exported volumes, were down 14 per cent to 3.92 million TCEs (2022: 4.58 million TCEs)
Unsurprisingly, the national apple crop was down on the prior year, with a decrease of 8 per cent compared to 2022. As a result,
we continued to contribute significantly to the national apple crop in 2023, with production from our owned and leased orchards
accounting for 15.8 per cent of New Zealand’s apple exports (2022: 17.7 per cent).
Orchard Statistics
We continue to monitor and report against various operating statistics, a selection of which are noted below:
1
Planted orchard at the end of the year was 1,095 hectares (2022: 1,149 hectares).
Scales Corporation Limited
Divisional Overview - Horticulture

Volumes and Prices
Volumes and prices (on a NZD FOB basis) for 2023 and 2022 are noted below.
Volumes by Variety (TCE 000s)20232022
Premium Varieties
NZ QueenTCE 000s337 439
Pink LadyTCE 000s249 305
Red Sports (Fuji and Royal Gala)TCE 000s820 1,056
Dazzle™ & Posy™TCE 000s269 215
OtherTCE 000s68 181
TotalTCE 000s1 ,74 2 2,196
Growth%(21%)(7%)
% premium64%66%
Traditional varieties
BraeburnTCE 000s263 338
Royal GalaTCE 000s265 298
OtherTCE 000s463 492
TotalTCE 000s991 1 ,1 2 8
Growth%(12%)(12%)
Total Mr Apple owned and leased orchardsTCE 000s2 ,73 3 3,324
Growth%(18%)(9%)
Prices by Variety (NZD / TCE (FOB))
Weighted average price for premium varietiesNZD / TCE 4 4.1 40.6
Weighted average price for traditional varietiesNZD / TCE 33.5 27.3
Total weighted average priceNZD / TCE 40.3 36.1
Volumes of Premium and Traditional varieties were down 21 per cent and 12 per cent respectively in 2023 although Dazzle™ and
Posy™ volumes grew by a pleasing 25 per cent. Premium volumes accounted for around 64 per cent of all exports in 2023, in line
with 2022 (66 per cent).
Mr Apple experienced a strong finish to its 2023 season which was, in part, due to limited supply of fruit in key markets. This
in turn contributed to higher in-market pricing and an overall increase in the weighted average pricing for both Premium and
Traditional varieties.
Divisional Overview - Horticulture
Annual Report - Year Ended 31 December 2023
Divisional Overview - Horticulture

2024 Outlook
The Horticulture season has commenced well, with picking and packing of the 2024 harvest in progress at Mr Apple.
As previously noted, we believe that the effects of Cyclone Gabrielle will largely be limited to the 2023 season and
current volume indications suggest Mr Apple own export volumes of 3.4 million TCEs in 2024. There is strong initial
demand from the Asia and Middle East markets, and our first shipment of Posy™ departed for China in mid-February.
Volumes by Variety (TCE 000s)
Other PremiumDazzle™ & Posy™
Red Sports
(Fuji and Royal Gala)
Pink Lady
NZ QueenOther TraditionalRoyal GalaBraeburn
3,500
3,000
2,500
2,000
1,500
1,000
500
0
4,000
2,752
3,155
3,546
3,545
3,867
3,822
3,915
3,651
3.324
2,733
2014201520162017201820192020202120222023
Mr Apple Own Export Volume (TCE 000s)
2014201520162017201820192020202120222023
2,752
3,155
3,546
3,545
3,867
3,822
3,915
3,651
3,324
2,733
Premium VarietiesTraditional VarietiesPremium volumes as % of total
Scales Corporation Limited
Divisional Overview - Horticulture

Logistics
Operational and Financial Performance
The key operational metrics and the summarised financial performance for the Logistics division for 2023 and 2022 are shown below.
20232022
Key Operational Metrics
Ocean freight volumeTEUs26,010 27,580
Airfreight volumeMT4,464 5,553
Financial Performance$000's$000's
Logistics Revenue92,568 123,338
Underlying Logistics EBITDA 4,281 6,595
Depreciation and amortisation(234)(194)
Depreciation of right-of-use assets(493)(572)
Underlying Logistics EBIT3,555 5,829
Logistics EBITDA 4,281 6,595
Logistics EBIT3,555 5,829
Capital employed10,499 7,556
ROCE39.4%61.1%
The Logistics division produced a steady result despite the impact of reduced produce volumes and the need to navigate geopolitical
difficulties in key trade routes. Airfreight volumes were also, in part, affected by a slow start to the 2023 stone fruit season.
Revenue was down 25 per cent to $92.6 million (2022: $123.3 million) and Underlying EBITDA was down 35 per cent to $4.3 million
(2022: $6.6 million). Underlying earnings were in line with the results of 2019 to 2021.
The strategic benefits that this division brings to the Group is not solely measured in key performance indicators, but also the
extremely important strategic value that it brings to the Group.
2024 Outlook
The outlook for the global supply chain market suggests that disruptions to key trade routes will remain in place during 2024.
In addition, suppliers and manufacturers are expected to continue rebalancing their inventory holdings throughout the first
half of the year.
However, we believe that the resilience and flexibility previously exhibited by Scales Logistics will stand the division in good
stead and that it will continue to provide strategic value in excess of its positive financial contribution.
NB: A reconciliation of Underlying to Reported profit measures follows this Divisional Overview section.
Overview and Divisional Developments
The services of Scales Logistics include:
• Ocean freight services to exporters and importers of perishable products, with offices in Auckland, Christchurch, Tauranga,
Hawke’s Bay and Melbourne
• Air freight services, including chiller facilities in Christchurch and Auckland together with warehousing facilities in Christchurch
Annual Report - Year Ended 31 December 2023
Divisional Overview - Logistics

GroupGlobal Proteins
2023202220232022
$000's$000's$000's$000's
Underlying EBITDA (excluding NZ IFRS 16)55,940 66,550 54,441 60,083
NZ IFRS 16 Leases11,736 9,383 78 76
NZ IFRS 16 Leases - renewal reassessment(162)1,960 - -
Underlying EBITDA (including NZ IFRS 16)6 7, 5 1 4 77,893 54,520 60,158
Other adjustments:
(Impairment)/reversal of impairment of non-
current assets
(3,353)(3,729) - -
Impairment of goodwill(8,531) - - -
Cyclone Gabrielle - net costs and proceeds901 - - -
Equity settled employee benefits(456)(609) - -
NZ IFRS 16 Leases - renewal reassessment162 (1,960) - -
Fayman acquisition entries1,176 1,619 1,176 1,619
Equity accounting losses not recognised670 -670 -
Intercompany FX -(568) -260
Change in fair value gain on apple inventory480 131 - -
Change in gross liability for non-controlling
interests and joint venture options
(4,121)(4, 215)(4,121)(4,193)
Profruit - segment transfer - - -1,069
Transaction costs(767)(47) - -
Reported EBITDA53,675 68,516 52,245 58,913
Underlying EBIT (excluding NZ IFRS 16)45,198 55,951 53,650 59,335
NZ IFRS 16 Leases3,025 296 12 11
NZ IFRS 16 Leases - renewal reassessment(162)1,960 - -
Underlying EBIT (including NZ IFRS 16)48,061 58,207 53,662 59,347
Other adjustments:
(Impairment)/reversal of impairment of non-
current assets
(3,353)(3,729) - -
Impairment of goodwill(8,531) - - -
Cyclone Gabrielle - net costs and proceeds901 - - -
Equity settled employee benefits(456)(609) - -
NZ IFRS 16 Leases - renewal reassessment162 (1,960) - -
Fayman acquisition entries1,176 1,619 1,176 1,619
Equity accounting losses not recognised670 -670 -
Intercompany FX -(568) -260
Change in fair value gain on apple inventory480 131 - -
Change in gross liability for non-controlling
interests and joint venture options
(4,121)(4, 215)(4,121)(4,193)
Profruit - segment transfer - - -1,069
Transaction costs(767)(47) - -
Reported EBIT34,22248,830 51,388 58,102
Reconciliation of Underlying to Reported Profit Measures
The following table provides a reconciliation of Underlying profitability to Reported profitability for the Group and each division.
Scales Corporation Limited
Divisional Overview

HorticultureLogisticsCorporate and eliminations
202320222023202220232022
$000's$000's$000's$000's$000's$000's
4,185 6,532 3,550 5,843 (6,237)(5,907)
10,811 8,488 730 752 116 67
(162)1,960 - - - -
14,834 16,980 4,281 6,595 (6,1 2 2 )(5,841)
(3,353)(3,729) - - - -
(8,531) - - - - -
901 - - - - -
- - - -(456)(609)
162 (1,960) - - - -
- - - - - -
- - - - - -
- - - - -(828)
480 131 - - - -
-(22) - - - -
-(1,069) - - - -
- - - -(767)(47)
4,493 10,332 4,281 6,595 (7,344)(7,324)
(5,501)(3,114)3,317 5,649 (6,268)(5,919)
2 ,74 0 95 238 180 35 9
(162)1,960 - - - -
(2,923)(1,058)3,555 5,829 (6,233)(5,910)
(3,353)(3,729) - - - -
(8,531) - - - - -
901 - - - - -
- - - -(456)(609)
162 (1,960) - - - -
- - - - - -
- - - - - -
- - - - -(828)
480 131 - - - -
-(22) - - - -
-(1,069) - - - -
- - - -(767)(47)
(13,265)(7,707)3,555 5,829 (7,455)(7,394)
Annual Report - Year Ended 31 December 2023
Divisional Overview

GroupGlobal Proteins
2023202220232022
$000's$000's$000's$000's
Underlying NPAT (excluding NZ IFRS 16)38,626 46,897 45,367 49,145
NZ IFRS 16 Leases, net of tax(87)(1,913)(1)(1)
NZ IFRS 16 Leases - renewal reassessment, net
of tax
(117)1,412 - -
Underlying NPAT (including NZ IFRS 16)38,422 46,396 45,367 4 9,1 4 4
Other adjustments:
(Impairment)/reversal of impairment of non-
current assets
(3,353)(3,729) - -
Impairment of goodwill(8,531) - - -
Cyclone Gabrielle - net costs and proceeds901 - - -
Equity settled employee benefits(456)(609) - -
NZ IFRS 16 Leases - renewal reassessment162 (1,960) - -
Fayman acquisition entries1,307 1,619 1,307 1,619
Equity accounting losses not recognised670 -670 -
Intercompany FX -(568) -260
Change in fair value gain on apple inventory480 131 - -
Change in gross liability for non-controlling
interests and joint venture options
(4,121)(4, 215)(4,121)(4,193)
Profruit - segment transfer - - -1,069
Transaction costs(767)(47) - -
Tax effect of other NZ IFRS adjustments(40)1,212 (547)(812)
Reported NPAT24,674 38,231 42,677 47,0 8 7
Underlying NPATAS (excluding NZ IFRS 16)19,187 28,078 25,928 30,327
NZ IFRS 16 Leases, net of tax(87)(1,913)(1)(1)
NZ IFRS 16 Leases - renewal reassessment, net
of tax
(117)1,412 - -
Underlying NPATAS (including NZ IFRS 16)18,982 2 7, 5 7 7 25,927 30,326
Other adjustments:
(Impairment)/reversal of impairment of non-
current assets
(3,353)(3,729) - -
Impairment of goodwill(8,531) - - -
Cyclone Gabrielle - net costs and proceeds901 - - -
Equity settled employee benefits(456)(609) - -
NZ IFRS 16 Leases - renewal reassessment162 (1,960) - -
Fayman acquisition entries1,307 1,619 1,307 1,619
Equity accounting losses not recognised670 -670 -
Intercompany FX -(568) -260
Change in fair value gain on apple inventory480 131 - -
Change in gross liability for non-controlling
interests and joint venture options
(4,121)(4, 215)(4,121)(4,193)
Profruit - segment transfer - - -1,069
Transaction costs(767)(47) - -
Tax effect of other NZ IFRS adjustments(40)1,212 (547)(812)
Reported NPAT Attributable to Shareholders5,235 19,412 23,237 28,268
The following table provides a reconciliation of Underlying profitability to Reported profitability for the Group and each division.
Scales Corporation Limited
Divisional Overview

HorticultureLogisticsCorporate and eliminations
202320222023202220232022
$000's$000's$000's$000's$000's$000's
(3,419)(2,010)2,381 4,015 (5,703)(4,252)
(10)(1,849)(73)(61)(4)(2)
(117)1,412 - - - -
(3,545)(2,448)2,308 3,954 (5,707 )(4, 253)
(3,353)(3,729) - - - -
(8,531) - - - - -
901 - - - - -
- - - -(456)(609)
162 (1,960) - - - -
- - - - - -
- - - - - -
- - - - -(828)
480 131 - - - -
-(22) - - - -
-(1,069) - - - -
- - - -(767)(47)
507 1,556 - - -469
(13,380)(7,542)2,308 3,954 (6,931)(5,269)
(3,419)(2,012)2,381 4,015 (5,703)(4,252)
(10)(1,849)(73)(61)(4)(2)
(117)1,412 - - - -
(3,545)(2,449)2,308 3,954 (5,707 )(4, 253)
(3,353)(3,729) - - - -
(8,531) - - - - -
901 - - - - -
- - - -(456)(609)
162 (1,960) - - - -
- - - - - -
- - - - - -
- - - - -(828)
480 131 - - - -
-(22) - - - -
-(1,069) - - - -
- - - -(767)(47)
507 1,556 - - -469
(13,380)(7,543)2,308 3,954 (6,930)(5,268)
Annual Report - Year Ended 31 December 2023
Divisional Overview

Leadership
Leadership Profiles
Scales Corporation Limited

Management Profiles
Andy Borland
Managing Director
Andy joined Scales in 2007 and
became Managing Director in 2011.
Andy’s full biography is set out in
the following section.
Kent Ritchie
CEO Scales Logistics
Kent joined Scales in 1998 and has
spent over 30 years in the shipping
industry. He has been involved in setting
up shipping services from New Zealand,
has experience in all aspects of the
transport industry and has led Scales’
expansion into the logistics arena.
Brett Frankel
President Shelby Foods
Brett established Shelby Foods in
2007 and has been its President
since inception. Brett has over
20 years’ experience in petfood,
having had a senior procurement
role prior to starting Shelby. He also
represents the third generation of
family involvement in the sector,
following in the footsteps of both his
father and grandfather.
John Sainsbury
CEO Meateor Group
John has been with Meateor in
various management roles for over
20 years. Prior to that, John worked
in senior management, marketing and
operational roles in the United States.
John was appointed CEO of Meateor
Foods in 2015, and CEO of Meateor
Group in 2019.
Tim Harty
General Manager
Meateor Pet Foods
Tim was appointed General
Manager at the inception of the JV
with Alliance in 2019. Tim has had
over 20 years’ experience in the
export meat industry, in marketing
and operational roles, both in New
Zealand and overseas.
Geoff Smith
Chief Operations Officer
Geoff joined Scales in 2022 from Zespri
where he was Head of New Zealand
Supply. Geoff has extensive experience
across a variety of agribusinesses,
particularly in operations, supply chain,
strategy and investment. Geoff has both
an Honours degree and Doctorate from
Lincoln University.
Steve Kennelly
Chief Financial Officer
Steve has been with Scales since
1993 in a variety of accounting and
financial roles. As CFO, Steve is
responsible for finance, funding,
legal, company secretarial and
information technology. Steve is a
member of Chartered Accountants
Australia and New Zealand.
Andrew van Workum
CEO Mr Apple
Andrew has worked in the apple
industry for over 30 years. He joined
Mr Apple at its inception in 2001 and
prior to that was General Manager
of Mr Apple’s predecessor, Grocorp
Pacific Limited, where he worked for
16 years. He has extensive experience
in the production aspects of the apple
industry, and was previously a Director
of Pipfruit New Zealand.
Chantelle Ramage
General Manager Profruit
Chantelle has been with Profruit
for 17 years, including 15 as General
Manager. Prior to that Chantelle
held Production Manager and
Technical Manager roles with the
company. Chantelle graduated from
Lincoln University with a Bachelor of
Science, majoring in Food.
Hamish Davis
Managing Director Fern Ridge Fresh
Hamish joined Fern Ridge in 2001,
becoming Managing Director in 2008.
He has over 30 years’ experience in
the growing and post-harvest sectors
of the apple industry, and remains very
active in export sales for the company.
Annual Report - Year Ended 31 December 2023
Leadership Profiles

In order from left to right:
Nadine was appointed to
the Board in 2019. Nadine is
currently CEO of Horticulture
New Zealand and has
extensive horticulture and
wider primary industry
management experience
from previous roles, including
as the former CEO of Oha
Honey LP. Nadine also brings
experience from a wide
variety of governance and
advisory roles, including as
a Director of Plant & Food
Research, a member of Ngā
Pouwhiro Taimatua and a
former member of the Primary
Sector Council. Nadine was
also a former Chair of New
Zealand Apples & Pears
Incorporated. Nadine is Chair
of Scales’ Health & Safety and
Sustainability Committee.
Nadine Tunley
Non-Executive
Independent Director
Tony was appointed to the Board
in August 2023, having previously
been a director of Scales from
2011 to 2014. Tony has a private
equity and investment banking
background, in New Zealand with
Evergreen Partners and Direct
Capital, and in London with HSBC
Investment Bank. Tony is currently
an Independent Non-Executive
Director of Briscoe Group Limited,
where he is also Chair of the Audit
& Risk Committee. In addition
to this role, Tony is currently a
Partner and Director of Evergreen
Partners and a Non-Executive
Director of NZ Fine Touring
Group. Tony is Chair of Scales’
Nominations and Remuneration
Committee and of Scales’ Finance
and Treasury Committee. Tony
is also a member of Scales’ Audit
and Risk Management Committee.
Tony Batterton
Non-Executive
Independent Director
Alan was elected to the
Board in 2014. Alan was
the President of the
International Cricket
Council between 2012 and
2014 and is currently: Chair
of the Basin Reserve Trust,
a Director of Oceania
Healthcare (NZ) Limited,
Skellerup Holdings Limited
and a number of private
companies. Alan has an
extensive background in
the accounting and finance
field and is a former
National Chair of KPMG.
He was made a Companion
of the New Zealand Order
of Merit (CNZM) in 2013
for services to cricket and
business. Alan is Chair
of Scales’ Audit and Risk
Management Committee.
Alan Isaac
Non-Executive
Independent Director
Andy joined Scales in 2007
and became Managing
Director in 2011. Prior to
joining Scales he had a 20-
year career in banking, with
his final role being Head
of Corporate at Westpac
New Zealand. Andy has
overall responsibility for
the strategic direction and
day-to-day management
of Scales. In addition to his
directorships of the Group,
Andy is currently the Chair
of Primary Collaboration
New Zealand Limited and
Primary Collaboration New
Zealand (Shanghai) Co.
Limited. Andy is a member
of Scales’ Finance and
Treasury Committee and
Scales’ Health & Safety and
Sustainability Committee.
Andrew (Andy)
Borland
Executive Director
Board of Directors
(as at 18 March 2024)
Scales Corporation Limited
Leadership Profiles

Xin was appointed to
the Board in 2021. He
is a Senior Director of a
department within China
Resources Enterprise,
Limited, which holds
a 15.0% shareholding
in Scales. Xin has held
Director and CFO roles
within China Resources
(Holdings) Co, Limited.
Xin holds a Bachelor
of Engineering from
the Beijing Institute of
Technology and a MBA
from the University of North
Carolina at Chapel Hill.
Qi Xin
Non-Executive
Director
Miranda was appointed
to the Board in August
2022. Miranda has over
20 years executive and
entrepreneurial experience,
centered on fast moving
consumer goods in New
Zealand and globally,
including as the Global
Marketing Manager for
Pernod Ricard. Miranda is
currently Chair of Meadow
Mushrooms and Live Ocean.
Miranda is also the former
CEO of Global Women. In
2019 Miranda co-founded
Food Nation, a New Zealand
based food manufacturer
that developed plant-
powered products. Miranda
is a member of Scales’
Health & Safety and
Sustainability Committee.
Miranda Burdon
Non-Executive
Independent Director
Mike was appointed to the
Board in April 2023. Mike has
over 30 years’ management
and governance experience
in the agribusiness sector.
He is currently a director of
ANZCO Foods and Kelso
Genetics Limited and is
Chair of agri-food digital
marketplace developers,
Nui Markets Limited. Mike
also has advisory roles with
a number of other privately-
owned companies. Mike was
previously Chair of Beef +
Lamb New Zealand and was
also New Zealand’s Special
Agricultural Trade Envoy for
6 years. Mike is a member
of Scales’ Nominations and
Remunerations Committee.
Mike Petersen
Non-Executive
Independent Chair
Nick was elected to the
Board in 2014, having
been appointed a Director
of both Scales’ Storage
& Logistics division and
Meateor in 2012. Nick was
previously the Managing
Director and was one of
the founding shareholders
of Hellers Limited, New
Zealand’s largest bacon,
ham and small goods
company. Nick is currently
the Managing Director of
Harris Meats and Glenturret
Farm in Cheviot, North
Canterbury, and is also a
Shareholder and Director of
several private companies.
Nick is a member of
Scales’ Audit and Risk
Management Committee.
Nick Harris
Non-Executive
Independent Director
Annual Report - Year Ended 31 December 2023
Leadership Profiles

The
Numbers
Financial Statements
Financial Statements
Scales Corporation Limited

Contents
Comprehensive income
The income earned and operating expenditure
incurred by the Scales Group during the financial year
(profit or loss) followed by the other comprehensive
income that is taken to reserves in equity.
46
Changes in equity
The opening balance, details of movements during
the year and the balance of each component of
shareholders’ equity at the end of the financial year.
48
Financial position
The Scales Group assets, liabilities and equity
at the end of the financial year.
49
Cash flows
Cash generated and used in the operating, investing
and financing activities of the Scales Group.
50
Notes to the Financial Statements 53
A. Segment information 55
B. Financial performance58
B1. Revenue
B2. Cost of sales, administration and operating expenses
B3. Other income and losses
B4. Finance cost
B5. Taxation
B6. Foreign currency transactions
C. Key assets 63
C1. Property, plant and equipment
C2. Unharvested agricultural produce
C3. Investments accounted for using the equity method
C4. Goodwill
C5. Inventories
C6. Impairment of assets
C7. Software
D. Capital funding 72
D1. Share capital
D2. Reserves
D3. Dividends attributable to equity holders of the company
D4. Imputation credit account
D5. Earnings per share
E. Financial assets and liabilities
E1. Trade and other receivables
E2. Other financial assets
E3. Trade and other payables
E4. Borrowings
E5. Other financial liabilities
E6. Interest rate risk
E7. Foreign currency risk
E8. Categories of financial instruments
E9. Maturity profile of financial liabilities
77
F. Group structure
F1. Subsidiary companies
F2. Non-Controlling Interests
84
G. Other
G1. Capital commitments
G2. Leases
G3. Related party disclosures
G4. Contingent liability
G5. Cyclone Gabrielle
G6. Events occurring after balance date
86
Annual Report - Year Ended 31 December 2023
Financial Statements

20232022
Note
$000's$000's
RevenueB1565,356 619,173
Cost of salesB2(444,662)(492,547)
120,694 126,626
Administration and operating expensesB2(64,123)(53,003)
Impairment of property, plant and equipmentC1(4,729)(3,729)
Impairment of goodwillC4(8,531)-
Share of profit of entities accounted for using the equity methodC38,131 4,624
Other incomeB38,569 67
Other lossesB3(6,336)(6,069)
EBITDA53,675 68,516
AmortisationC7(497)(379)
DepreciationC1(10,245)(10,220)
Depreciation of right-of-use assetG2(8,711)(9,087)
EBIT34,222 48,830
Finance revenue2,056 1,045
Finance costB4(3,331)(1,284)
Finance cost of lease liabilityG2(3,14 4)(2,953)
PROFIT BEFORE INCOME TAX EXPENSE29,803 45,638
Income tax expenseB5(5,129)(7,407)
PROFIT FOR THE YEAR24,674 38,231
Profit for the year is attributable to:
Equity holders of the Company5,235 19,412
Non-controlling interests 19,439 18,819
24,674 38,231
EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Basic earnings per share (cents) D53.7 13.7
Diluted earnings per share (cents) D53.7 13.7
The notes to the financial statements on pages 53 to 89 form part of and should be read in conjunction with this statement.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2023
Scales Corporation Limited
Financial Statements

20232022
Note$000's$000's
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss:
Gain (loss) on cash flow hedges11,231 (10,704)
Income tax relating to cash flow hedges (3,145)2,997
Share of other comprehensive income of joint ventures C3 1,554 817
Income tax relating to share of other comprehensive income of joint ventures22 (229)
Foreign exchange gain on translating foreign operations 307 330
9,969 (6,78 9)
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings (3,122)10,355
Income tax relating to buildings(740)(331)
Revaluation of apple trees936 (3,873)
Income tax relating to apple trees(262)1,084
Remeasurement of net defined benefit liability238 372
Income tax relating to remeasurement of net defined benefit liability(36)(4 4)
(2,986)7, 5 6 3
OTHER COMPREHENSIVE INCOME FOR THE YEAR6,983 7 74
TOTAL COMPREHENSIVE INCOME FOR THE YEAR31,657 39,005
Total comprehensive income for the year attributable to:
Equity holders of the Company12,123 20,037
Non-controlling interests19,534 18,968
31,657 39,005
The notes to the financial statements on pages 53 to 89 form part of and should be read in conjunction with this statement.
Consolidated Statement of Comprehensive Income (continued)
for the year ended 31 December 2023
Annual Report - Year Ended 31 December 2023
Financial Statements

The notes to the financial statements on pages 53 to 89 form part of and should be read in conjunction with this statement.

Share
capitalReserves
Retained
earnings
Attributable
to owners of
the Company
Non-
controlling
interestsTotal
Note$000's$000's$000's$000's$000's$000's
Balance at 1 January 202299,588 92,160 192,644 384,392 5,922 390,314
Profit for the year- - 19,412 19,412 18,819 38,231
Other comprehensive income for the year- 625 - 625 149 7 74
Total comprehensive income for the year- 625 19,412 20,037 18,968 39,005
Recognition of share-based paymentsD2- 609 - 609 - 609
Shares soldD1116 - - 116 - 116
Shares fully vestedD1, D22,271 (804)(234)1,233 - 1,233
DividendsD3- - (21,947)(21,947)( 1 7,5 1 6 )(39,463)
Balance at 31 December 2022101,975 92,590 189,875 384,440 7, 3 74 391,814
Profit for the year- - 5,235 5,235 19,439 24 ,6 74
Other comprehensive income for the year- 6,888 - 6,888 95 6,983
Total comprehensive income for the year- 6,888 5,235 12,123 19,534 31,657
Recognition of share-based paymentsD2- 456 - 456 - 456
Shares soldD196 - - 96 - 96
Shares fully vestedD1, D21 , 3 74 (499)(145)730 - 730
DividendsD3- - (24,493)(24,493)(15,312)(39,805)
Balance at 31 December 2023103,445 99,435 170,472 373,352 11,596 384,948
Consolidated Statement of Changes in Equity
for the year ended 31 December 2023
Scales Corporation Limited
Financial Statements

The notes to the financial statements on pages 53 to 89 form part of and should be read in conjunction with this statement.
20232022
Note$000's$000's
EQUITY
Share capitalD1103,445 101,975
ReservesD299,435 92,590
Retained earnings170,472 189,875
Equity attributable to Scales Corporation Limited shareholders373,352 384,440
Equity attributable to non-controlling interests11,596 7, 3 74
TOTAL EQUITY384,948 391,814
CURRENT ASSETS
Cash and bank balances7 7,6 3 8 68,144
Trade and other receivablesE134,029 42,102
Current tax assets3,938 5,334
Other financial assetsE25,989 4,938
Unharvested agricultural produceC224,222 25,149
InventoriesC529,543 42 ,647
Prepayments4,337 4,783
TOTAL CURRENT ASSETS179,696 193,097
NON-CURRENT ASSETS
Property, plant and equipmentC1221,219 221,204
Investments accounted for using the equity methodC363,902 5 4 ,74 3
GoodwillC436,972 45,527
Defined benefit plan net asset60 -
Other financial assetsE229,077 15,511
SoftwareC71,160 1,332
Right-of-use assetG249,572 49,044
TOTAL NON-CURRENT ASSETS401,962 387,361
TOTAL ASSETS581,658 580,458
CURRENT LIABILITIES
Bank overdrafts- 2,368
Trade and other payablesE326,446 3 7, 2 2 6
Dividend declaredD36,041 8,503
Current tax liabilities616 -
Other financial liabilitiesE518,524 15,445
Lease liabilityG210,963 10,925
TOTAL CURRENT LIABILITIES62,590 74 ,4 6 7
NON-CURRENT LIABILITIES
BorrowingsE465,647 38,732
Deferred tax liabilitiesB517,104 17,821
Defined benefit plan net liability- 170
Other financial liabilitiesE56,699 13,388
Lease liabilityG244,670 44,066
TOTAL NON-CURRENT LIABILITIES134,120 114,177
TOTAL LIABILITIES196,710 188,644
NET ASSETS384,948 391,814
Consolidated Statement of Financial Position
as at 31 December 2023
Annual Report - Year Ended 31 December 2023
Financial Statements

20232022
Note$000's$000's
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers571,987 606,293
Insurance proceeds4,809 -
Government grants received1,986 -
Dividends and distributions received751 1,876
Interest received1,814 1,393
581,347 609,562
Cash was disbursed to:
Payments to suppliers and employees(502,201)(545,477)
Interest paid(6,475)(4,237)
Income tax paid( 7, 97 1 )(14,983)
(516,647)(564,697)
NET CASH PROVIDED BY OPERATING ACTIVITIES64,700 44,865
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from maturing term deposits- 85,000
Advances repaid255 112
Sale of property, plant and equipment and software(424)161
(169)85,273
Cash was applied to:
Purchase of property, plant and equipmentC1(16,808)(14,592)
Purchase of softwareC7(325)(994)
Purchase of non-controlling shareholding- (2,180)
Acquisition of interest in joint ventures- (25,968)
Advances to joint ventures(11,869)(2,818)
(29,002)(46,552)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES(29,171)38,721
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Treasury stock sold96 116
Drawdowns of term facility borrowingsE427,306 -
27,402 116
Cash was applied to:
Dividends paidD3(26,955)(26,863)
Dividends paid to non-controlling interestsF2(15,312)( 1 7,5 1 6 )
Repayments of lease liabilitiesG2(8,420)(8,281)
(50,687)(52,660)
NET CASH USED IN FINANCING ACTIVITIES(23,285)(52,544)
Consolidated Statement of Cash Flows
for the year ended 31 December 2023
The notes to the financial statements on pages 53 to 89 form part of and should be read in conjunction with this statement.
Scales Corporation Limited
Financial Statements

Consolidated Statement of Cash Flows (continued)
for the year ended 31 December 2023
20232022
$000's$000's
NET INCREASE IN NET CASH12,244 31,042
Net foreign exchange difference(382)1,532
Cash and cash equivalents at the beginning of the year65,7 76 33,202
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR7 7,6 3 8 6 5,7 76
Represented by:
Cash and bank balances 7 7,6 3 8 68,144
Bank overdrafts- (2,368)
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
7 7,6 3 8 65,7 76
NET CASH GENERATED BY OPERATING ACTIVITIES
Reconciliation of profit for the year to net cash generated by operating activities:
Profit for the year 24 ,6 74 38,231
Non-cash items:
Depreciation (including on right-of-use asset)18,956 19,307
(Gain) loss on lease modification(177)1,854
Impairment on revaluation4,729 3,729
Amortisation 497 379
Share of equity accounted results(8,131)(4,624)
Hedging instruments(416)192
Gain on disposal of property, plant and equipment(118)(66)
Share-based payments456 609
Change in value of call and put options4,12 1 4,215
Deferred tax(4,867)( 1 ,7 74 )
Interest capitalised into loans(111)(24)
Fair value loss on interest-free related party loans, net of interest income1,913 -
Impairment of goodwill8,531 -
Foreign exchange on related party loans232 -
Joint ventures purchase price receivable(1,307)-
Operating cash receipts not included in profit for the year:
Dividends received from equity accounted entities750 1,875
Changes in net assets and liabilities:
Trade and other receivables9,662 (12,812)
Unharvested agricultural produce927 (588)
Inventories 13,040 (12,553)
Prepayments445 (712)
Trade and other payables(11,131)13,429
Current tax assets and liabilities2,025 (5,802)
NET CASH PROVIDED BY OPERATING ACTIVITIES64,700 44,865
The notes to the financial statements on pages 53 to 89 form part of and should be read in conjunction with this statement.
Annual Report - Year Ended 31 December 2023
Financial Statements

Andy Borland, Managing Director Mike Petersen, Chair
Statement of Cash Flows
For the purpose of the statement of cash flows, cash and cash equivalents include cash and bank balances and bank overdrafts.
The following terms are used in the statement of cash flows:
Operating activities are the principal revenue producing activities of the Group and other activities that are not investing or
financing activities.
Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
Financing activities are activities that result in changes in the size and composition of the contributed equity and borrowings of
the Group.
For and on behalf of the Board of Directors who authorised the issue of the financial statements on 21 February 2024.
Consolidated Statement of Cash Flows (continued)
for the year ended 31 December 2023
The notes to the financial statements on pages 53 to 89 form part of and should be read in conjunction with this statement.
Scales Corporation Limited
Financial Statements

About This Report
IN THIS SECTION
The notes to the financial statements include information which is considered relevant and material to assist the reader in
understanding the financial performance and financial position of the Scales Corporation Limited Group (“Scales” or the
“Group”). Information is considered relevant and material if:
• the amount is significant because of its size and nature;
• it is important for understanding the results of Scales;
• it helps to explain changes in Scales’ business; or
• it relates to an aspect of Scales’ operations that is important to future performance.
Scales Corporation Limited (the “Company”) is a for-profit entity domiciled and registered under the Companies Act
1993 in New Zealand. It is an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The
Group consists of Scales Corporation Limited, its subsidiaries and joint ventures. The principal activities of the Group are
to grow apples, provide logistics services, export products, manufacture and trade food ingredients, provide insurance
services to companies within the Group and operate processing facilities.
The financial statements have been prepared:
• in accordance with Generally Accepted Accounting Practice (GAAP), International Financial Reporting Standards (IFRS),
the New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable financial
reporting standards, as appropriate for a Tier 1 for-profit entity;
• in accordance with the requirements of the Financial Markets Conduct Act 2013;
• in accordance with accounting policies that are consistent with those applied in the previous year;
• on the basis of historical cost, except for certain assets and financial instruments that are measured at fair values; and
• in New Zealand dollars with all values rounded to the nearest thousand dollars.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or liability, the Group takes into
account the characteristics of the asset or liability if market participants would take those characteristics into account
when pricing the asset or liability at the measurement date.
For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to
which the inputs to the fair value measurements are observable. The levels are described as:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date;
• Level 2 inputs are inputs, other than quoted prices within Level 1, that are observable for the asset or liability, either
directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
Key judgements and estimates
In the process of applying the Group’s accounting policies and the application of financial reporting standards, Scales
has made a number of judgements and estimates. The estimates and underlying assumptions are based on historical
experience and various other factors that are considered to be appropriate under the circumstances.
Actual results may differ from these estimates.
Judgements and estimates which are considered material to understanding the performance of Scales are explained in
the following notes:
• Apple trees in note C1;
• Unharvested agricultural produce in note C2;
• Assessment of Group goodwill for impairment in note C4.
Notes to the Financial Statements
for the year ended 31 December 2023
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

Basis of consolidation
The Group financial statements incorporate the financial statements of the Company and its subsidiaries (being entities
controlled by Scales Corporation Limited), and the equity accounted result, assets and liabilities of the joint ventures.
The financial statements of members of the Group, are prepared for the same reporting period as the parent company, using
consistent accounting policies.
In preparing the Group financial statements, all material intra-group transactions, balances, income, expenses and cash flows
have been eliminated. Subsidiaries are consolidated from the date on which control is obtained to the date on which control is lost.
Other accounting policies
Other accounting policies that are relevant to an understanding of the financial statements are provided throughout the notes to
the financial statements.
Adoption of new and revised standards and interpretations; standards and Interpretations issued but not yet effective
All mandatory amendments and interpretations have been adopted in the current year. None had a material impact on these
financial statements.
The Group has reviewed the standards, interpretations and amendments to existing standards issued but not yet effective and
does not expect these standards to have a material effect on the financial statements of the Group when adopted.
Scales Corporation Limited
Notes to the financial statements

Global
ProteinsHorticultureLogisticsOtherEliminationsTotal
$000's$000's$000's$000's$000's$000's
2023
Total segment revenue298,547 209,939 92,568 3,007 (38,705)565,356
Inter-segment revenue- - (35,684)(3,021)38,705 -
Revenue from external customers298,547 209,939 56,884 (14)- 565,356
Gain on sale of non-current assets(5)123 - - - 118
Insurance proceeds- 4,809 - - - 4,809
Share of profit of entities accounted for
using the equity method
6,369 1,762 - - - 8,131
Impairment of property, plant and
equipment
- (4,729)- - - (4,729)
Goodwill impairment- (8,531)- - - (8,531)
Gain on lease modification- 177 - - - 177
A. Segment Information
IN THIS SECTION
This section explains the financial performance of the operating segments of Scales, providing additional information about
individual segments, including:
• total segment revenue and revenue from external customers;
• segment profit before income tax; and
• total segment assets and liabilities.
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker,
being the Managing Director. The Managing Director monitors the operating performance of each segment for the purpose of making
decisions on resource allocation and strategic direction. Inter-segment pricing is determined on an arm’s length basis. Segment
results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. No single external
customer’s revenue accounts for 10% or more of the Group’s revenue.
Change in segments:
In 2022 the presentation of operating segments was amended. The Food Ingredients segment was renamed to Global Proteins and
now includes the new entities acquired during the previous year. Profruit (2006) Limited was moved to the Horticulture segment. This
impacted the share of profit in entities accounted for using the equity method and the carrying value of investments accounted for
using the equity method.
The Group comprises the following operating segments:
Global Proteins: processing and marketing of proteins such as pet food ingredients, edible meat and offal products. Meateor Foods
Limited, Meateor Foods Australia Pty Limited, Meateor Group Limited, Meateor US LLC, Shelby JV LLC Group (Shelby Cold Storage LLC,
Shelby Exports Inc, Shelby Foods LLC, Shelby JV LLC, Shelby Properties LLC, Shelby Trucking LLC), Meateor GP Limited, Meateor Pet
Foods Limited Partnership, Scales FI Group Holdings Pty Limited, Meateor Australia Pty Limited, FI Group Holdings Pty Limited Group (FI
Group Holdings Pty Limited, Fayman International Group Pty Limited and Fayman New Zealand Limited), ANZ Exports Pty Limited and
Esro Petfood B.V.
Horticulture: orchards, fruit packing, juice concentrate processing and marketing. Mr Apple New Zealand Limited, New Zealand
Apple Limited, Fern Ridge Produce Limited, Longview Group Holdings Limited and Profruit (2006) Limited.
Logistics: logistics services. Scales Logistics Limited and Scales Logistics Australia Pty Ltd.
Other: Scales Corporation Limited, Geo. H. Scales Limited, Scales Employees Limited, Scales Holdings Limited and Selacs
Insurance Limited.
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

Segment Reporting (continued)
Global
ProteinsHorticultureLogisticsOtherEliminationsTotal
$000's$000's$000's$000's$000's$000's
EBITDA52,245 4,493 4,281 (7,344)- 53,675
Amortisation expense- (473)(17)(7)- (497)
Depreciation expense(791)(9,213)(217)(24)- (10,245)
Depreciation of right-of-use asset(66)(8,071)(493)(81)- (8,711)
Finance revenue336 86 57 1,577 - 2,056
Finance costs(57)(7)(36)(3,231)- (3,331)
Finance cost of lease liability(12)(2 ,753)(339)(40)- (3,14 4)
Income tax expense(8,978)2,558 (928)2,219 - (5,129)
Segment profit (loss) after income tax42,677 (13,380)2,308 (6,931)- 24,674
Segment assets177,176 324,689 20,797 58,996 - 581,658
Segment liabilities30,301 88,696 12,657 65,056 - 196,710
Segment carrying value of investment
accounted for using the equity method
56,033 7, 870 - - - 63,903
Segment acquisition of property, plant and
equipment and software
6,157 10,608 234 137 - 1 7,1 3 6
Segment acquisition of right-of-use assets(0)10,051 356 760 - 11,167
2022
Total segment revenue319,923 228,854 123,338 2,893 (55,835)619,173
Inter-segment revenue- - (52,894)(2,941)55,835 -
Revenue from external customers319,923 228,854 70,444 (48)- 6 1 9,1 7 3
Scales Corporation Limited
Notes to the financial statements

Segment Reporting (continued)
Global
ProteinsHorticultureLogisticsOtherEliminationsTotal
$000's$000's$000's$000's$000's$000's
Gain on sale of non-current assets- 66 - - - 66
Share of profit of entities accounted for
using the equity method
3,556 1,068 - - - 4,624
Reversal of (impairment) impairment on
evaluation
- (3,729)- - - (3,729)
Loss on lease modification- (1,854)- - - (1,854)
EBITDA58,913 10,332 6,595 (7,324)- 68,516
Amortisation expense- (361)(18)- - (379)
Depreciation expense(747)(9,285)(176)(12)- (10,220)
Depreciation of right-of-use asset(64)(8,393)(572)(58)- (9,087)
Finance revenue36 20 18 971 - 1,045
Finance costs(25)(62)(39)(1,158)- (1,284)
Finance cost of lease liability(14)(2,664)(264)(11)- (2,953)
Income tax expense(11,012)2,871 (1,615)2,323 26 (7,407)
Segment profit (loss) after income tax47,0 8 7 (7,542)3,929 (5,269)26 38,231
Segment assets169,018 345,096 29,032 37,312 - 580,458
Segment liabilities46,398 107,850 15,967 18,429 - 188,644
Segment carrying value of investment
accounted for using the equity method
47,885 6,858 - - - 5 4 ,74 3
Segment acquisition of property, plant and
equipment and software
3,491 11,898 168 26 - 15,583
Segment acquisition of right of use assets42 6,614 33 - - 6,689
Non-current assets other than financial instruments by geographical location
New ZealandAustraliaUSATotal
20232022202320222023202220232022
$000's$000's$000's$000's$000's$000's$000's$000's
Property, plant and
equipment
208,421 213,614 25 31 12 ,7 73 7,559 221,219 221,204
Investments
accounted for using
the equity method
29,503 2 7,6 74 34,399 27,0 6 9 - - 63,902 5 4 ,74 3
Goodwill7,6 57 16,189 - - 29,315 29,338 36,972 45,527
Software1,160 1,332 - - - - 1,160 1,332
Right-of-use asset49,197 48,578 123 149 252 317 49,572 49,044
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

B1. Revenue
20232022
$000's$000's
By nature:
Revenue from the sale of goods492,874 525,298
Revenue from the rendering of services7 7, 27 1 88,990
Fees and commission16 13
Net foreign exchange loss/(gain)(9,450)(544)
Rental revenue4,645 5,416
565,356 6 1 9,1 7 3
By market:
New Zealand 68,354 95,627
Asia159,907 162,097
Europe30,540 32,262
North America304,001 325,855
Other2,554 3,332
565,356 6 1 9,1 7 3
By segment and type:
Horticulture - sale of agricultural produce193,759 214,084
Horticulture - agricultural produce related services11,543 9,363
Horticulture - other4,637 5,407
Global Proteins - sale of pet food ingredients290,216 310,517
Global Proteins - other8,331 9,406
Logistics services56,884 70,444
Other(14)(4 8)
565,356 6 1 9,1 7 3
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf
of third parties. The Group recognises revenue when it transfers control of a product or service to a customer.
B. Financial Performance
IN THIS SECTION
This section explains the financial performance of Scales, providing additional information about individual items in the
statement of comprehensive income, including:
• accounting policies, judgements and estimates that are relevant for understanding items recognised in the statement of
comprehensive income; and
• analysis of Scales’ performance for the year by reference to key areas including revenue, expenses and taxation.
Scales Corporation Limited
Notes to the financial statements

B1. Revenue (continued)
Sale of agricultural produce
The Group sells apples to more than 160 customers in 40 countries. Sales-related quality claim provisions are recorded in
accordance with NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Revenue is recognised when control of
the goods has transferred, being when the goods have been shipped to the customer (“outright sales”) or when the goods have
been sold by the customer (“consignment sales”). In addition, the apple season finishes before the end of the calendar year,
with performance obligations under both sales types satisfied for all sales made during that season.
Outright sales
Following shipment, revenue is recognised when the customer obtains control as it has full discretion over the manner of
distribution and price to sell the goods, has the primary responsibility when onselling the goods and bears the risks of loss in
relation to the goods. A receivable is recognised by the Group when it loses control, which is when the goods are delivered on
the ship at the port of shipment as this represents the point in time at which the right to consideration becomes unconditional,
as only the passage of time is required before the payment is due. Terms of payment are up to 45 days on arrival.
Consignment sales
Revenue is recognised by the Group when it loses control, which is when the goods are confirmed to be on-sold to the ultimate
customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage
of time is required before the payment is due. Terms of payment are immediate upon on-sale.
Sale of petfood ingredients
The Group sells petfood ingredients to a number of international and domestic customers. Revenue is recognised when
control of the goods has transferred, being when the goods have been delivered to the customer (“delivered to destination
sales”) or when shipped to the customer (“outright sales”). Terms of payment are up to 120 days.
Delivered to destination sales
Following delivery, revenue is recognised when the customer obtains control as it has full discretion over the manner of
distribution and price to sell the goods, has the primary responsibility when onselling the goods and bears the risks of loss in
relation to the goods. A receivable is recognised by the Group when it loses control, which is when the goods are delivered
to the destination named by the customer as this represents the point in time at which the right to consideration becomes
unconditional, as only the passage of time is required before the payment is due.
Outright sales
Same as above under “Sale of agricultural produce - outright sales”.
Agricultural produce related services
The Group provides a number of agricultural produce related services to external apple growers, including packaging, cartage,
export documentation and export services. Each of those services is considered to be a distinct service as it is both regularly
supplied by the Group to customers on a stand-alone basis and is available for customers from other providers in the market.
A receivable is recognised by the Group when the service performance has been completed, and the performance obligation
is satisfied as this represents the point in time at which the right to consideration becomes unconditional, as only the passage
of time is required before the payment is due. Terms of payment are up to 45 days.
Logistics services
The Group provides marine and air logistics services to domestic customers. Revenue is recognised by the Group at a point
in time, which is when the shipment is organised and the goods are on the ship or the aeroplane. The performance obligation is
satisfied at the point in time at which the right to consideration becomes unconditional, as only the passage of time is required
before the payment is due. Terms of payment are up to 60 days.
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

B2. Cost of Sales, Administration and Operating Expenses
20232022
$000's$000's
Auditor's remuneration:
Deloitte Limited (New Zealand):
Audit of the financial statements:
Audit of the annual financial statements321 285
Other assurance services:
Audit of solvency certificate for Selacs Insurance Limited9 7
Sheehan & Company CPA, PC (United States):
Group reporting audit134 115
Review of subsidiary financial statements37 35
Lowe Lippmann (Australia):
Group reporting audit22 -
Bad debts incurred (recovered)2,847 (112)
Change in fair value adjustment to unharvested agricultural produce(4 80)(131)
Change in inventories11,559 (12,688)
Direct expenses91,267 99,408
Directors' fees716 677
Donations261 10
Electricity3,036 3,583
Employee benefits expense:
Post employment benefits - defined contribution plans1,232 1,265
Post employment benefits - defined benefit plans627 689
Salaries, wages and related benefits87,7 78 94,037
Other employee benefits456 609
Grower payments35,318 31,568
Insurance4,537 4,190
Management fees48 44
Materials and consumables153,817 182,046
Ocean and air freight92,533 118,136
Operating lease expenses1,990 2,218
Packaging13,673 14,029
Provision (reversal of) for write-down of inventories1,825 (107)
Repairs and maintenance5,222 5,637
508,785 545,550
Disclosed as:
Cost of sales444,662 492,547
Administration and operating expenses64,123 53,003
508,785 545,550

Employee benefits
An accrual is made for benefits due to employees in respect of wages and salaries, annual leave and long service leave when it is
probable that settlement will be required and they are capable of being measured reliably. Accruals are measured at their nominal
values using the remuneration rate expected to apply at the time of settlement.
Contributions to defined contribution plans are recognised as an expense when employees have rendered service entitling them to
the contributions.
The costs relating to shares issued in accordance with the Senior Executive Share Scheme are explained in note D2.
Scales Corporation Limited
Notes to the financial statements

B3. Other Income and Losses
20232022
$000's$000's
Dividends1 1
Gain on disposal of property, plant and equipment 118 66
Insurance proceeds4,809 -
Gain on joint ventures earn-out provision settlement1,307 -
Gain on joint ventures call options171 -
Government grants - Cyclone Gabrielle1,986 -
Gain (loss) on lease modification177 (1,854)
Fair value loss on interest-free related party loans(2,044)-
Remeasurement of gross liability on put options to non-controlling interest(4, 292)(4, 215)
2,233 (6,002)
Disclosed as:
Other income8,569 67
Other losses(6,336)(6,069)
2,233 (6,002)
B4. Finance Cost
Interest on loans3,234 1,140
Other interest7 73
Bank facility fees90 71
3,331 1,284
Finance costs consist of interest and other costs incurred in connection with the borrowing of funds. Interest expense is accrued on
a time basis using the effective interest method.
B5. Taxation
Income tax recognised in profit or loss
Income tax expense comprises:
Current tax expense8,077 9,324
Adjustments recognised in the current year in relation to the current tax of prior years 1,919 (143)
Deferred tax expense relating to the origination and reversal of temporary differences(4,867)( 1 ,7 74 )
Total income tax expense recognised in profit or loss5,1 2 9 7,4 07
The prima facie income tax expense on pre-tax accounting profit reconciles to the income tax expense in the financial statements
as follows:
Profit before tax29,803 45,638
Income tax expense calculated at applicable corporate tax rates7, 973 11,830
Non-assessable income(7,650)(5,404)
Non-deductible expenses4,454 1,124
Under (over) provision of income tax in previous year - current tax1,919 (143)
(Over) under provision of income tax in previous year - deferred tax(1,567)-
5,1 2 9 7,4 07
The tax rates used in the above reconciliation are the corporate tax rate of 28% payable by New Zealand companies under New
Zealand tax law, 30% payable by Australian companies under Australian tax law and 26.82% (2022: 25.5%) payable by US entities
under US tax law, being federal tax 21% and weighted average state tax 5.82% (2022: 4.5%). Shelby JV LLC and its subsidiaries
are look-through entities for US income tax purposes. Therefore, although the Group includes 100% of its net profit before tax,
separately disclosing non-controlling interest, the Group only includes 60% of its income tax.
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

Opening
balance
Charged to
profit or loss
Charged
to other
comprehensive
income
Foreign
exchange
movements
Closing
Balance
$000's$000's$000's$000's$000's
Deferred tax liability

Taxable and deductible temporary differences
arise from the following:
31 December 2023
Deferred tax liabilities (assets):
Trade and other receivables82 (129)- - (47)
Unharvested agricultural produce7,0 4 2 (260)- - 6,782
Property, plant and equipment and software13,960 (2,517)1,002 (10)12,435
Trade and other payables(708)(389)- - (1,097)
Lease liability and right-of-use asset (NZ IFRS 16)(1,686)(32)- - (1,718)
Other financial assets and liabilities, joint ventures
and pension plan
(869)(1,540)3,159 (1)74 9
Net deferred tax liability17,821 (4,867)4 ,1 6 1 (11)17,104
31 December 2022
Deferred tax liabilities (assets):
Trade and other receivables11 71 - - 82
Unharvested agricultural produce6,877 165 - - 7,0 4 2
Property, plant and equipment and software15,985 (1,409)(753)137 13,960
Trade and other payables(850)142 - - (708)
Lease liability and right-of-use asset (NZ IFRS 16)(939)( 74 3 )- (4)(1,686)
Other financial assets and liabilities, joint ventures
and pension plan
1,860 - (2 ,724)(5)(869)
Net deferred tax liability22,944 (1 ,7 74 )(3,477)128 17,821
Current tax is the taxation expected to be paid to taxation authorities in respect of the current year. Deferred taxation is recognised
in respect of temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Financial
Statements. Current and deferred tax is calculated on the basis of the laws enacted or substantively enacted at balance date.
Income tax
Current and deferred tax are recognised in profit or loss, except when the tax relates to items charged or credited to other
comprehensive income, in which case the tax is also recognised in other comprehensive income.
B6. Foreign Currency Transactions
In preparing the financial statements of the individual entities, the transactions in currencies other than New Zealand
dollars are recorded at the rates of exchange prevailing at the dates of the transaction. At the end of each reporting period
financial assets and liabilities denominated in foreign currencies are retranslated into New Zealand dollars at the rates
prevailing at the end of the reporting period.
Exchange differences from these transactions are recognised in profit or loss in the period in which they arise.
Income and expenses for each subsidiary whose functional currency is not New Zealand dollars are translated at exchange
rates that approximate the rates at the actual dates of the transactions. Assets and liabilities of each subsidiary are
translated at exchange rates at balance date.
All resulting exchange differences are recognised in the foreign exchange translation reserve, which is a separate
component of equity.
The effective portion of exchange differences on foreign currency borrowings designated as hedges of net investments in
foreign operations is also recognised in the foreign exchange translation reserve.
B5. Taxation (continued)
Scales Corporation Limited
Notes to the financial statements

C. Key Assets
IN THIS SECTION
This section shows the key assets Scales uses to generate operating revenues. There is information about:
• property, plant and equipment;
• unharvested agricultural produce;
• investments accounted for using the equity method;
• goodwill; and
• inventories.
C1. Property, Plant and Equipment
Land and
buildings at
fair value
Apple trees
at fair value
Plant and
equipment
at cost
Office
equipment
and motor
vehicles at
cost
Capital work
in progress
at costTotal
$000's$000's$000's$000's$000's$000's
Gross carrying amount
Balance at 1 January 2022143,451 35,394 71,308 12,401 8,065 270,619
Additions721 2 ,437 11,055 1,793 (1,414)14,592
Disposals- - (100)(534)(21)(655)
Revaluation8,257 (6,030)- - - 2,227
Effect of foreign currency translation158 - 301 2 29 490
Balance at 31 December 2022152,587 31,801 82,564 13,662 6,659 2 8 7, 2 7 3
Additions258 1,373 6,100 1,195 7,882 16,808
Disposals(402)- ( 1 , 2 74 )(815)(30)(2,521)
Revaluation(5,101)(853)- - - (5,954)
Effect of foreign currency translation(3)- (82)- (114)(199)
Balance at 31 December 2023147,339 32,321 87,308 14,042 14,397 295,407
Accumulated depreciation, and
impairment
Balance at 1 January 20221,264 800 44,986 9,70 0 - 56,750
Depreciation expense2,098 2 ,157 4,909 1,056 - 10,220
Disposals- - (39)(519)- (558)
Revaluation(2,098)(2,157)- - - (4, 255)
Impairment on revaluation67 3,661 - - - 3,728
Effect of foreign currency translation- - 183 1 - 184
Balance at 31 December 20221,331 4,461 50,039 10,238 - 66,069
Depreciation expense2 ,140 1,790 5,093 1,222 - 10,245
Disposals(375)- (1,973)(717)- (3,065)
Revaluation(1,979)(1,789)- - - (3,768)
Impairment on revaluation935 2 ,418 - - - 3,353
Impairment on disposals214 - 1,162 - - 1,376
Effect of foreign currency translation- - (22)- - (22)
Balance at 31 December 20232,266 6,880 54,299 1 0,74 3 - 74,188
Net book value
As at 31 December 2022151,256 27,340 32,525 3,424 6,659 221,204
As at 31 December 2023145,073 25,441 33,009 3,299 14,397 221,219
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

C1. Property, Plant and Equipment (continued)
Accounting policy
Land, buildings and apple trees are included in the statement of financial position at their fair value at the date of revaluation,
less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Valuations are performed with
sufficient regularity such that the carrying amounts do not differ materially from those that would be determined using fair values
at the end of the reporting period.
Any valuation increase arising on the revaluation of such land, buildings and apple trees is recognised in other comprehensive
income and accumulated as a separate component of equity in the revaluation reserve, except to the extent that it reverses a
valuation decrease for the same asset previously recognised in profit or loss, in which case the increase is credited to profit or loss
to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of such land, buildings
and apple trees is charged to profit or loss to the extent that it exceeds the balance, if any, held in the revaluation reserve relating
to a previous revaluation of that asset.
Depreciation on revalued buildings and apple trees is charged to profit or loss. On the subsequent sale or retirement of revalued
property or apple trees, the attributable revaluation surplus remaining in the revaluation reserve is transferred directly to retained
earnings. No transfer is made from the revaluation reserve to retained earnings except when an asset is derecognised.
Office equipment, motor vehicles, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the item.
Depreciation is provided on property, plant and equipment, including buildings and apple trees but excluding land and capital work
in progress. Depreciation is charged so as to write off the cost or valuation of assets, other than land and capital work in progress,
over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation
method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis. The
following estimated useful lives are used in the calculation of depreciation:
Apple trees 30 years
Buildings 10 to 50 years
Office Equipment and Motor Vehicles 2 to 20 years
Plant and Equipment 2 to 25 years
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sale proceeds and the carrying amount of the asset and is recognised in profit or loss.
Land and buildings carried at fair value
Land and buildings shown at valuation were valued at fair value as at 31 December 2023 by independent registered valuers Added
Valuation Limited and Logan Stone Limited. The valuations were arrived at by reference to market evidence of transaction prices
for similar properties.
The impact of Cyclone Gabrielle has been considered as part of the valuation process, refer to note G5.
In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where
Level 1 inputs are not available, the Group engages third party qualified valuers to perform the valuation. Group finance team led
by the Chief Financial Officer works closely with the qualified external valuers to establish the appropriate valuation techniques
and inputs to the model. The Chief Financial Officer reports the Group finance team’s findings to the Audit & Risk Management
Committee to explain the methods used and causes of fluctuations in the fair value of assets and liabilities.
The fair value of land and buildings is calculated on the basis of market value. Market value is determined by applying income
capitalisation and comparative sales calculations which are benchmarked against depreciated replacement cost calculations.
The valuations include adjustments to observable data for similar properties to take into account property-specific attributes.
The significant unobservable inputs, based on regional averages, for the land and buildings (mainly coolstores and packhouses)
are potential market comparative rentals $6 - $250 per square metre (2022: $5 - $250) and the capitalisation rates of 6.4% - 10%
(2022: 5.6% - 10%).
The higher the rental rates the higher the fair value. The higher the capitalisation rates the lower the fair value. Significant changes
in either of these inputs would result in significant changes to the fair value measurement. Orchard land is valued within the range
of $27,400 - $170,000 per hectare (2022: $39,500 to $180,000).
The Group’s land and buildings are classified as Level 3 in the fair value hierarchy.
The carrying amount of land and buildings had it been recognised under the cost model is $59,556,000 (2022: $62,365,000).
Apple trees carried at fair value
The Group’s apple orchards, being the apple trees other than the existing crop on the trees, were valued at fair value by Boyd
Gross B.Agr (Rural Val), Dip Bus Std, FNZIV, FPINZ of Logan Stone Limited as at 31 December 2023.
The market valuations completed by Boyd Gross were based on a discounted cash flows analysis of forecast income streams and
costs. They were benchmarked against a comparison of sales of other orchards adjusted to reflect the location, plantings, age and
varieties of trees and productive capabilities of the orchards. The fair value of orchard land and buildings are deducted from the
overall orchard valuation to give rise to the apple trees valuation. The impact of Cyclone Gabrielle has been considered as part of
the valuation process, refer to note G5.
Scales Corporation Limited
Notes to the financial statements

C1. Property, Plant and Equipment (continued)
The significant unobservable inputs, based on district averages, for the apple trees are:
20232022
Production levels (gross tray carton equivalent (tce)) per hectare2,894 - 5,4592,485 - 5,249
Orchard gate returns per tce$22.00 - $55.00$20.00 - $62.00
Orchard costs per tce$19.00 to $31.44$20.21 to $37.16
Discount rate15.5% - 17.5%15.6% - 17.1%
The higher the production levels and orchard gate return the higher the fair value. The higher the orchard costs and discount rate the
lower the fair value. Significant changes in any of these inputs would result in significant changes to the fair value measurement. The
Group’s apple trees are classified as level 3 in the fair value hierarchy.
The carrying amount of apple trees had it been recognised under the cost model is $11,039,000 (2022: $13,873,323).
The apple trees, on owned and leased orchards, have the following planting profile:
Total hectares planted
20232022
Premium varieties:
NZ Queen206 205
Pink Lady101 117
Red sports (Fuji and Royal Gala)275 268
Other premium236 1 74
Traditional varieties:
Braeburn34 86
Royal Gala122 152
Other traditional112 147
1,086 1 ,1 4 9
Risk management strategy:
The Group is exposed to financial risks arising from changes in climatic conditions, market prices and the value of the New Zealand
dollar. The Group mitigates these risks by geographical spread of orchards, installing hail and frost protection on orchards which
have shown to be more susceptible to these risks, utilising foreign currency derivative instruments and building close working
relationships with key customers.
C2. Unharvested Agricultural Produce
20232022
$000's$000's
Balance at beginning of the year25,149 24,561
Decrease due to harvest(25,149)(24,561)
Development expenditure24,981 26,388
Fair value adjustment(759)(1,239)
Balance at end of the year24,222 2 5,1 4 9
The assessment of the value of unharvested agricultural produce was undertaken by management, using a discounted cash flow
model, and is calculated as the fair value less estimated harvest and post-harvest costs (including costs to sell) of the unharvested
crop on the trees at the reporting date. The risk adjusting discount rate represents an allowance for adverse events that may affect
crop, harvest and/or market conditions. This calculation is also benchmarked against orchard costs incurred during the current
growing cycle.
The Group’s unharvested agricultural produce is classified as Level 3 in the fair value hierarchy.
The significant unobservable inputs included in the model are the:
20232022
Production levels (tonnes per hectare per annum)42 - 16460 - 111
Orchard gate returns per tce$24 to $67$23 to $65
Risk adjusting discount rates 46% to 64%46% to 64%
The higher the yield per hectare and the higher the orchard gate returns per tce, the higher the fair value. The higher the risk
adjusting discount rate, the lower the fair value.
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

C3. Investments Accounted for Using the Equity Method
Details of each of the Group’s material joint ventures at the end of the reporting period are as follows:
Joint venturesPrincipal activity
Country of
incorporation HoldingBalance date
20232022
ANZ Exports Pty LtdTrading companyAustralia42.50%42.50%30 June
Esro Petfood B.VTrading companythe Netherlands50%N /A31 December
FI Group Holding Pty LtdTrading companyAustralia50%50%30 June
Meateor Australia Pty LtdTrading companyAustralia33.33%33.33%30 June
Meateor Pet Foods Limited PartnershipTrading companyNew Zealand 50%50%31 December
Profruit (2006) LimitedTrading companyNew Zealand 50%50%31 December
Summarised financial information in respect of the Group’s joint ventures is set out below. The aggregate summarised financial
information below represents amounts in joint ventures’ financial statements prepared in accordance with NZ IFRS Standards.
The Australian incorporated entities have a balance date of 30 June which aligns with the income tax year in Australia.
On 31 October 2022, Scales acquired the shareholdings of FI Group Holding Pty Limited, ANZ Exports Pty Limited and Meateor
Australia Pty Limited. On the same date, Scales provided a put option to the other shareholders of each entity for the remaining
shares and the shareholders provided Scales with a call option for the remaining shares. The exercise price is set at a value based on
a multiple of the respective entities EBITDA. The options are recorded in the statement of financial position, refer to note E2.
On 10 August 2023, Scales subscribed to a 50% shareholding in a Europe based newly established petfood ingredient processing
operation, Esro Petfood B.V.
Summarised financial information for Profruit (2006) Limited for the year ended 31 December
20232022
$000's$000's
Current assets17,096 14,558
Non-current assets6,032 6,015
Current liabilities(7,390)(4,717)
Non-current liabilities- (2,142)
Net assets15,738 13,7 14
Group's share in the net assets7,869 6,857
Carrying amount of investment in equity accounted entities7,869 6,857
The above amounts of assets and liabilities include the following:
Cash and cash equivalents491 164
Current financial liabilities (excluding trade and other payables and provisions)(2 ,14 3)(326)
Non-current financial liabilities (excluding trade and other payables and provisions)- (2,142)
Capital commitments357 278
Revenue26,225 26,504
Profit for the year after tax3,525 2 ,128
Other comprehensive income attributable to the owners of the company- -
Total comprehensive income3,525 2 ,1 2 8
The above profit for the year includes the following:
Depreciation and amortisation668 646
Interest expense734 469
Income tax expense1,383 838
Scales Corporation Limited
Notes to the financial statements

Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint venture recognised in
the consolidated financial statements:
20232022
$000's$000's
Share of profit before taxation2 ,454 1,484
Share of income tax(692)(415)
Share of other comprehensive income (net of tax)- -
Share of net profit for the year and total comprehensive income1,76 2 1,069
Carrying value at beginning of the year6,857 6,663
Dividends and distributions paid(750)(875)
Investment in equity accounted entities7,869 6,857
Summarised financial information for Meateor Pet Foods Limited Partnership for the year ended 31 December
Current assets28,162 25,679
Non-current assets33,389 29,328
Current liabilities(14,421)(10,526)
Non-current liabilities(3,862)(2,847)
Net assets43,268 41,634
Group's share in the net assets of equity accounted entities21,634 20,817
Carrying amount of investment in equity accounted entities21,634 20,817
The above amounts of assets and liabilities include the following:
Cash and cash equivalents422 320
Current financial liabilities (excluding trade and other payables and provisions)(8,400)(3,600)
Non-current financial liabilities (excluding trade and other payables and provisions)- -
Capital commitments750 2,000
Revenue53,007 52,665
Profit for the year after tax1,788 3,224
Other comprehensive income attributable to the owners of the company(154)1,634
Total comprehensive income
1,634 4,858
The above profit for the year includes the following:
Depreciation and amortisation1,322 1,253
Interest expense649 245
Income tax expense- -
Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint venture recognised in
the consolidated financial statements:
Share of profit before taxation894 1,612
Share of income tax- -
Share of other comprehensive income (net of tax)(77)817
Share of net profit for the year and total comprehensive income817 2,429
Carrying value at beginning of the year20,817 19,388
Dividends and distributions paid by equity accounted entities- (1,000)
Investment in equity accounted entities21,634 20,817
C3. Investments Accounted for Using the Equity Method (continued)
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

Summarised financial information for the Fayman equity accounted entities for the year ended 31 December
The accounting for the acquisitions of FI Group Holdings Pty Limited, ANZ Exports Pty Limited and Meateor Australia Pty Limited
have been finalised during 2023. The 2022 comparatives have been restated to record the goodwill on acquisition. The finalisation of
the acquisition accounting resulted in the restatement of the 2022 comparatives to record goodwill on acquisition.
2023
2022
(Restated)
$000's$000's
Current assets62,020 35,931
Non-current assets67,6 9 3 33,756
Current liabilities(43,255)(21,613)
Non-current liabilities(37,668)(13,678)
Net assets48,790 34,396
Group's share in the net assets of equity accounted entities24,059 17,199
Goodwill10,117 10,713
Effect of foreign exchange translation224 (841)
Carrying amount of investment in equity accounted entities34,400 2 7,07 1
The above amounts of assets and liabilities include the following:
Cash and cash equivalents492 1,533
Current financial liabilities (excluding trade and other payables and provisions)(27,035)(14,742)
Non-current financial liabilities (excluding trade and other payables and provisions)(39,036)(13,607)
Revenue384,033 48,546
Profit for the year after tax10,511 4,112
Other comprehensive income attributable to the owners of the company1,031 -
Total comprehensive income
11,542 4,112
The above profit for the year includes the following:
Depreciation and amortisation876 7
Interest expense1,820 268
Income tax expense5,17 7 1,706
Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint venture recognised in
the consolidated financial statements:
Share of profit before taxation7,1 2 1 2 ,783
Share of income tax(1,647)(839)
Share of other comprehensive income (net of tax)1,631 -
Share of net profit for the year and total comprehensive income7,105 1,944
Carrying value at beginning of the year27,07 1 -
Investment acquired- 25,968
Dividends and distributions paid by equity accounted entities- -
Effect of foreign exchange translation224 (841)
Investment in equity accounted entities34,400 2 7,07 1
C3. Investments Accounted for Using the Equity Method (continued)
Scales Corporation Limited
Notes to the financial statements

Summarised financial information for Esro Petfood B.V. for the year ended 31 December
2023
$000's
Current assets1,838
Non-current assets5,479
Current liabilities(1,040)
Non-current liabilities(7,984)
Net assets(1,707 )
Group's share in the net assets of equity accounted entities(854)
Effect of foreign exchange translation-
Carrying amount of investment in equity accounted entities-
The above amounts of assets and liabilities include the following:
Cash and cash equivalents566
Current financial liabilities (excluding trade and other payables and provisions)(105)
Non-current financial liabilities (excluding trade and other payables and provisions)(7,984)
Revenue714
Profit for the year after tax(1,340)
Other comprehensive income attributable to the owners of the company-
Total comprehensive income
(1,340)
The above profit for the year includes the following:
Depreciation and amortisation69
Interest expense211
Income tax expense447
Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint venture recognised in
the consolidated financial statements:
Share of profit before taxation-
Share of income tax-
Share of other comprehensive income (net of tax)-
Share of net profit for the year and total comprehensive income-
Carrying value at beginning of the year-
Dividends and distributions paid by equity accounted entities-
Effect of foreign exchange translation-
Investment in equity accounted entities-
Esro Petfood B.V. generated a loss of $1.3m, (Scales share of $0.6m) for the year end 31 December 2023. Scales does not provide a
guarantee which results in the loss being capped at zero. For financial reporting purposes no profit has been recognised in Scales
Group result for 2023.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets
of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous consent of the parties sharing control.
The results and assets and liabilities of joint ventures are incorporated in these consolidated financial statements using the equity
method of accounting. Under the equity method, an investment in a joint venture is initially recognised in the consolidated statement
of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive
income of the joint venture. Dividends or distributions received from a joint venture reduce the carrying amount of the investment in
that joint venture in the Group financial statements. When the Group’s share of losses of a joint venture exceeds the Group’s interest
in that joint venture, the Group discontinues recognising its share of further losses. Additional losses are recognised only to the
extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture.
An investment in a joint venture is accounted for using the equity method from the date on which the investee becomes a joint
venture until the date it ceases to be a joint venture. On acquisition of the investment in a joint venture, any excess of the cost of
the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised as
goodwill, which is included within the carrying value of the investment. The requirements of NZ IAS 36 Impairment of Assets are
applied to determine whether it is necessary to recognise any impairment loss.
C3. Investments Accounted for Using the Equity Method (continued)
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

C4. Goodwill
20232022
$000's$000's
Gross carrying amount
Balance at beginning of the year45,527 43,392
Impairment of goodwill
(8,531)-
Effect of foreign currency exchange differences(24)2 ,135
Balance at end of the year36,972 45,527
Goodwill arising on the acquisition of a business is carried at cost as established at the date of acquisition of the business less
accumulated impairment losses, if any. Goodwill is tested for impairment annually, or more frequently if there are indications that
goodwill might be impaired. For the purpose of impairment testing, goodwill has been allocated to the cash-generating units (CGUs)
listed below which represent the lowest level at which the Directors monitor goodwill.
Horticulture - Fern Ridge
5,702 5,702
Horticulture - Mr Apple
- 8,531
Global Proteins - Shelby
29,315 29,339
Logistics
1,955 1,955
36,972 45,527
As at 31 December 2023, the Directors have determined, based on discounted cash flow and value in use calculations, that there is
no impairment of goodwill associated with Fern Ridge, Shelby and Logistics.
The discounted cash flow and value in use calculation uses future cash flows covering a five year period based on a Board approved
budget. The model was based on the following key assumptions:
20232022
Pre-tax discount rates12-16%12-16%
Annual growth rates3%3%
The Directors consider that any reasonably possible changes in the key assumptions would not cause the carrying amount of any of
the CGUs to exceed their recoverable amount.
The directors have determined that there is an impairment of the Mr Apple CGU as at 30 June 2023, as the carrying value exceeded
the recoverable amount. The impairment arose due to the orchard damage and reduced volumes due to Cyclone Gabrielle, refer to
note G5, and increasing interest rates.
The directors estimated the recoverable amount of the Mr Apple CGU based on a value in use calculation which uses future cash
flows covering a 5-year period.
Mr Apple CGU$000's
Recoverable amount of the Mr Apple CGU211,978
Carrying value220,509
Impairment(8,531)
20232022
Key assumptions:
Post-tax discount rate9.02%8.67%
Terminal growth rate beyond year 52.10%2.00%
The post-tax discount rate was determined based on the weighted average cost of capital which utilises past experience and
external sources.
The sensitivity of the recoverable amount of the Mr Apple CGU to reasonably possible changes is set out below:
$000's$000's
+0.5%-0.5%
Post-tax discount rate(14,784)1 7,0 07
Terminal growth rate12,214 (10,568)
+5%-5%
Forecast earnings16,781 (16,781)
As a result of the impairment testing, the impairment was wholly allocated to the Mr Apple CGU goodwill.
Scales Corporation Limited
Notes to the financial statements

C5. Inventories
20232022
$000's$000's
Finished goods 24,854 37,810
Other 4,689 4,837
29,543 42,647
Inventories are stated at the lower of cost and net realisable value. Cost means the actual cost of the inventory and in determining cost
the first in first out basis of stock movement is followed, with due allowance having been made for obsolescence. Net realisable value
represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
A provision of $1.6m has been recorded relating to aged inventory within the Global Proteins division. The provision relates to inventory
that has reached or nearing its expiry date and cannot be sold or may not be sold with certainty in the market. The provision includes
the costs of the inventory plus disposal costs.
C6. Impairment of Assets
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate
the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs.
A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that
the unit may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated
first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the
carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss and is not reversed
in subsequent periods.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future pre-
tax cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or
CGU) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset
is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
C7. Software
Software is stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is
directly attributable to the acquisition of the item. Amortisation is calculated on a straight line basis. The estimated useful live of 3
years is used in the calculation of amortisation.
20232022
$000's$000's
Gross carrying amount
Opening balance8,233 7, 2 3 9
Additions325 994
Closing balance8,558 8,233
Accumulated amortisation
Opening balance(6,901)(6,522)
Amortisation expense(497)(379)
Closing balance(7,398)(6,901)
Net book value1,160 1,332
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

D. Capital Funding
IN THIS SECTION
This section explains how Scales manages its capital structure and how dividends are returned to shareholders.
In this section there is information about:
• equity;
• dividends paid; and
• earnings per share.
Capital management
The Group’s capital includes share capital, reserves and retained earnings. The Group’s policy is to maintain a strong capital base
so as to maintain investor, creditor and customer confidence and to sustain the future development of the business. The impact of
the level of capital on shareholders’ return is also recognised and the Group recognises the need to maintain a balance between the
higher returns that might be possible with greater gearing and the advantages and security afforded by a sound capital position.
D1. Share Capital
Issued and paid up capital consists of 143,095,981 fully paid ordinary shares (2022: 142,721,868) less treasury stock of 1,160,229
shares (2022: 1,088,295 shares) (refer to note D2). All shares rank equally in all respects.
Shares issued or purchased on market under the Senior Executive Share Scheme (Share Scheme) (note D2) are treated as treasury
stock until vesting to the employee.
Number of shares
20232022
Fully paid ordinary shares:
Opening balance
142,721,868 142,394,837
Share Scheme - shares issued
374,113 327,031
Closing balance
143,095,981 142,721,868
Treasury stock:
Opening balance
1,088,295 1,230,166
Share Scheme - shares issued
374,113 327,031
Share Scheme - shares forfeited and sold
(28,898)(27,657)
Share Scheme - shares fully vested
(273,281)(441,245)
Closing balance
1,160,229 1,088,295
The available subscribed capital of $50,313,936 (2022: $49,101,810) represents the amount of the shareholders’ equity that is
available to be returned to shareholders on a tax-free basis.
In accordance with the Companies Act 1993 the Company does not have a limited amount of authorised capital and issued shares
do not have a par value.
Movement in share capital related to share-based payments:
20232022
$000's$000's
Equity-settled employee benefit share scheme vested
Interest-free loan became full recourse
730 1,233
Accumulated share option value reclassified from reserve into share capital
499 804
Accumulated dividends reclassified from retained earnings into share capital
145 234
1 , 3 74 2,271
Scales Corporation Limited
Notes to the financial statements

D2. Reserves
Revaluation
Cash flow
hedge
Share
of joint
ventures
Equity-
settled
employee
benefits
Foreign
exchange
translation
Pension
plan
reserve
Total
reserves
$000's$000's$000's$000's$000's$000's$000's
Balance at 1 January 202286,310 5,021 (70)1,277 (168)(210)92,160
Other comprehensive income (loss)7, 2 3 5 (7,707)588 - 330 179 625
Transfer to retained earnings- - - - - - -
Recognition of share-based
payments
- - - 609 - - 609
Shares fully vested- - - (804)- - (804)
Balance at 31 December 202293,545 (2,686)518 1,082 162 (31)92,590
Other comprehensive (loss) income(3,188)8,086 1,576 - 307 107 6,888
Transfer to retained earnings- - - - - - -
Recognition of share-based payments
- - - 456 - - 456
Shares fully vested- - - (499)- - (499)
Balance at 31 December 202390,357 5,400 2,094 1,039 469 76 99,435
Revaluation reserve
The revaluation reserve arises on the revaluation of land, buildings and apple trees, net of the related deferred tax.
Cash flow hedge reserve
The cash flow hedge reserve represents the unrealised gains and losses on interest rate and foreign currency contracts taken out to
manage the Group interest rate and foreign currency risks, net of the related deferred tax.
Equity-settled employee benefits reserve - LTI Scheme
The Share Scheme involves the Company making available interest-free loans to selected senior executives to acquire shares in the
Company. The senior executives will not gain any benefit with respect to the shares purchased under the Share Scheme unless they
remain in employment with the Group for a period of three years from the date of acquisition of those shares.
The shares are held by a custodian during the restricted period and are then transferred to the senior executive. All net dividends or
distributions received in respect of the shares must be applied to repayment of the interest-free loan.
Grant dateVesting date
Exercise
price ($)
Number of shares
Opening
balanceGrantedForfeited
Vested and
exercised
Closing
balance
30 April 2020 - FY1930 April 20233.20282,125 - (8,844)(273,281)-
28 June 2020 - FY19R24 August 20244.19194,511 - - - 194,511
30 April 2021 - FY2030 April 20243.20284,628 - (8,922)- 275,706
30 April 2022 - FY2130 April 20253.20327,031 - (11,132)- 315,899
30 April 2023 - FY2230 April 20263.33- 374,113 - - 374,113
Total1,088,295 374,113 (28,898)(273,281)1,160,229
The weighted average share price for shares that vested during 2023 was $3.14.
The shares issued vest over three years. The estimated value of the share options is determined using the Black-Scholes pricing
calculator and is amortised over the restricted period. This cost is expensed with the corresponding credit included in the equity-settled
employee benefits reserve. Expected share price volatility was based on historical volatility of the Company’s ordinary shares.
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

The inputs into the option pricing calculator are:
20232022
FY22FY21
Issue date share price, $3.24 5.03
Expected share price volatility, %25 25
Option life, years3 3
Risk-free interest rate, %4.14 3.27
Exercise price, $3.33 3.20
Fair value, at the grant date, $0.69 2.21
Equity-settled employee benefits reserve - PSR Scheme
On 15 December 2023 the Board approved the Scales’ Performance Share Rights Plan to grant performance rights to key senior
management personnel as a long-term incentive programme. The first round of performance rights were issued under this
programme during the period.
Performance rights granted are summarised below:
Grant dateVesting date
Number of rights
Opening
balanceGrantedForfeited
Vested and
exercised
Closing
balance
20 December 2023 - FY23 Tranche 19/03/26 - 5 6 ,74 8 - - 5 6 ,74 8
20 December 2023 - FY23 Tranche 223/03/26 - 38,113 - - 38,113
20 December 2023 - FY23 Tranche 39/03/26 - 228,095 - - 228,095
Total Shareholder Return (TSR) Hurdles - Tranches 1 and 3
The proportion of performance rights subject to the absolute TSR growth hurdle which may vest is dependent on Scales’ TSR
compound annual growth rate (CAGR) across a 3-year measurement period. TSR is the Company’s total shareholder returns. TSR
measures the total return received by Scales’ investors from the increase in the “market value” of an ordinary share in Scales and the
receipt of gross dividends and other distributions, from the Commencement Date to the Vesting date.
For each tranche that vests the rights are awarded on a straight-line basis dependent on the TSR CAGR achieved. The percentage
of TSR related performance rights vest according to the following performance criteria for each unvested tranche:
FY23 Round
Tranche 1 - % vesting
0%< 8.5% CAGR
25%= 8.5% CAGR
26% - 99% (Straight-line prorata)> 8.5%, < 12.5% CAGR
100%= 12.5% CAGR
FY23 Round
Tranche 3 - % vesting
0%= 12.5 % CAGR
1% - 99% (Straight-line prorata)> 12.5%, < 31.1% CAGR
100%= 31.1% CAGR
The TSR performance tranches are calculated across the following periods:
Round Vesting Period
FY23 - Tranche 1 and 3 20 December 2023 to 7 days after the announcement date of the FY25 Result
D2. Reserves (continued)
Scales Corporation Limited
Notes to the financial statements

D2. Reserves (continued)
The fair value of the TSR performance rights have been valued under a variant of the dividend adjusted Monte Carlo simulation.
The fair value of TSR performance rights, along with the assumptions used to simulate the future share prices are shown below:
FY23 - Tranche 1FY23 - Tranche 3
Current price at grant date$3.17$3.17
Risk free interest rate4.53%4.53%
Expected life (years)2.2 years2.2 years
Expected share volatility
1
31.12%31.12%
1. Volatility represents the volatility of the Scales Corporation’s NZD share price over a 3-year period to December 2023.
The estimated fair value for each tranche of performance rights issued is amortised over the vesting period from the grant date.
EPS Hurdles - Tranche 2
The proportion of performance rights subject to the EPS growth hurdle which may vest is dependent on Scales’ EPS compound
annual growth rate (CAGR) across a 3-year measurement period. For each tranche that vests the rights are awarded on a straight-
line basis dependent on the EPS CAGR achieved. EPS growth hurdle is considered a non-market condition. The percentage of EPS
related performance rights vest according to the following performance criteria:
FY23 Round
Tranche 2 - % vesting
0%< 5% CAGR
25%= 5% CAGR
26% - 99% (Straight-line prorata)> 5%, < 10% CAGR
100%= 10% CAGR
The EPS performance is calculated across the following periods:
Round Vesting Period
FY23 - Tranche 2 20 December 2023 the announcement date of the FY25 Result
The fair value of the EPS performance rights have been assessed as Scales’ share price as at grant date less the present value of the
dividends forecast to be paid prior to each vesting date.
The estimated fair value for each tranche of performance rights issued is amortised over the vesting period from grant date.
Vesting of performance rights also requires the employee to remain in employment with the Company during the performance
period. The Company has expensed in the income statement nil (2022: nil) in relation to performance rights.
Foreign exchange translation reserve
Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net
investment, are accounted for in two ways. Gains or losses relating to the effective portion of the hedge are recognised in other
comprehensive income. Any gains or losses relating to the ineffective portion of the hedge are recognised in profit or loss.
Gains or losses arising on translation of foreign subsidiaries results (Note B6) are also recognised in this reserve.
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

D3. Dividends Attributable to Equity Holders of the Company
20232022
$000's$000's
Final dividend paid - 13.00 (2022: 9.50) cents per share18,452 13,444
Interim dividend declared - 4.25 (2022: 6.00) cents per share6,041 8,503

24,493 21,947
All above dividends were fully imputed.
The 2023 interim dividend was declared on 8 December 2023 and paid on 18 January 2024.
D4. Imputation Credit Account
20232022
$000's$000's
Balance at end of the year8,651 18,057
The imputation credit account balance represents the net amount available at the reporting date that can be attached to future
dividends declared.
The Scales Corporation Limited consolidated tax group for income tax includes Scales Corporation Limited and all New Zealand
registered subsidiary companies other than Scales Employees Limited and Fern Ridge Produce Limited.
D5. Earnings Per Share
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the company by the weighted average
number of ordinary shares on issue during the year, excluding shares held as treasury stock. Diluted earnings per share assumes
conversion of all dilutive potential ordinary shares in determining the denominator.
20232022
Profit attributable to equity holders of the Company ($000’s):
5,235 19,412
Weighted average number of shares:
Ordinary shares141,831,545 141,413,787
Effect of dilutive ordinary shares (non-vested Senior Executive Share Scheme)116,268 302,534
Weighted average number of Ordinary Shares for diluted earnings per share 141,947,813 141,716,321
Earnings per share (cents):
Basic - continuing3.7 13.7
Diluted - continuing3.7 13.7
Scales Corporation Limited
Notes to the financial statements

E. Financial Assets and Liabilities
IN THIS SECTION
This section explains the financial assets and liabilities of Scales, the related risks and how Scales manages these risks.
In this section of the notes there is information on:
• the accounting policies, judgements and estimates relating to financial assets and liabilities; and
• the financial instruments used to manage risk.
Accounting Policies
Financial assets
Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’ (FVTPL) and
‘measured at amortised cost’.
The classification depends on the business model for managing the financial asset and the cash flow characteristics of the financial
asset and is determined at the time of initial recognition or when a change in the business model occurs.
Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss if they are not measured at cost or amortised cost.
Gains and losses on a financial asset designated in this category and not part of a hedging relationship are recognised in profit or loss.
Financial assets measured at amortised cost
The Group’s financial assets held in order to collect contractual cash flows that are solely payments of principal and interest on the
principal outstanding are measured at amortised cost. Cash and cash equivalents, trade receivables and employee loans are classified
in this category.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses (ECL) on investments in debt instruments that are measured at
amortised cost, trade and other receivables. The amount of expected credit losses is updated at each reporting date to reflect changes
in credit risk since initial recognition of the respective financial instrument.
The Group always recognises lifetime ECL for trade receivables. The expected credit losses on these financial assets is estimated
using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors,
general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date,
including time value of money where appropriate.
For all other financial instruments, the Group recognises lifetime ECL when there has been a significant increase in credit risk since
initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group
measures the loss allowance for that financial instrument at an amount equal to twelve-month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial
instrument. In contrast, twelve-month ECL represents the portion of lifetime ECL that is expected to result from default events on
a financial instrument that are possible within twelve months after the reporting date.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Group in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate.
Financial liabilities measured at amortised cost
The Group’s financial liabilities include trade and other payables and borrowings. These financial liabilities are initially recognised
at fair value net of any directly attributable costs. Subsequent to initial recognition, they are measured at amortised cost using the
effective interest method.
Derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value with reference to observable market data at the end of each reporting period. The resulting gain
or loss is recognised in profit or loss immediately unless the derivative is designated as an effective hedging instrument, in
which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The Group designates
certain derivatives as cash flow hedges. A derivative is presented as a non-current asset or a non-current liability where the cash
flow will occur after twelve months and it is not expected to be realised or settled within twelve months. Other derivatives are
presented as current assets or current liabilities.
Hedge accounting
At the inception of a hedge relationship, the Group documents the relationship between the hedging instrument and the hedged
item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the
inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging
relationship is highly effective in offsetting changes in cash flows of the hedged item, attributable to the hedged risk.
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

E1. Trade and Other Receivables
20232022
$000's$000's
Trade receivables25,589 36,170
Other receivables3,637 1,964
Owing by entities accounted for using the equity method1,628 924
Goods and services tax3,175 3,044
34,029 42,102
Credit risk management
The Group activities expose it to credit risk which refers to the risk that a counterparty will default on its contractual obligations resulting
in financial loss to the Group. Financial instruments which potentially subject the Group to credit risk principally consist of cash and
cash equivalents, trade and other receivables and advances. The Group performs credit evaluations on trade customers, obtains trade
credit insurance as appropriate but generally does not require collateral. The Group continuously monitors the credit quality of its
major receivables and does not anticipate non-performance of those customers. Cash and cash equivalents are placed with high credit
quality financial institutions.
There is a significant concentration of credit risk with 5 customers who represent 35.95% (2022: 5 customers who represented 44.42%)
of trade and other receivables.
The carrying amount of financial assets recorded in the financial statements represents the Group’s maximum exposure to credit risk.
Included in trade receivables are debtors which are past due at balance date, as payment was not received within one month, and for
which provision for expected credit losses was not material as there has not been a significant change in credit quality and the amounts
are still considered recoverable. No collateral is held over these balances although trade credit insurance cover is obtained in respect of
some specific receivables. Interest is not charged on overdue debtors. The ageing of these past due trade receivables is:
1 month5,159 4,998
2 months2,049 1,288
More than 2 months6,895 13,981
14,103 20,267
There was an ECL provision of $0.4m as at 31 December 2023 (2022: nil), which is included within the Trade Receivables balance
above.
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in
other comprehensive income and accumulated as a separate component of equity in the hedging reserve. The gain or loss relating
to the ineffective portion is recognised immediately in profit or loss, and is included in ‘other income’ or ‘other losses’.
Amounts recognised in the hedging reserve are reclassified from equity to profit or loss in the periods when the hedged item is
recognised in profit or loss, in the same line as the recognised hedged item. Hedge accounting is discontinued when the Group
revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge
accounting. Any cumulative gain or loss deferred in the hedging reserve at that time remains in equity and is recognised when
the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur, the
cumulative gain or loss that was deferred in the hedging reserve is recognised immediately in profit or loss.
Hedges of net investments in foreign operations
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging
instrument relating to the effective portion of the hedge is recognised in other comprehensive income and accumulated under the
heading of foreign exchange translation reserve. The gain or loss relating to the ineffective portion is recognised immediately in
profit or loss. Gains and losses on the hedging instrument relating to the effective portion of the hedge accumulated in the foreign
exchange translation reserve are reclassified to profit or loss on the disposal of the foreign operation.
E. Financial Assets and Liabilities (continued)
Scales Corporation Limited
Notes to the financial statements

E2. Other Financial Assets
20232022
Current:
$000's$000's
At fair value:
Foreign currency derivative instruments5,217 4,435
Interest rate swap contracts and forward rate agreements772 503
5,989 4,938
Non-current:
At fair value:
Foreign currency derivative instruments13,678 9,853
Interest rate swap contracts and forward rate agreements262 1,004
Joint venture call option171 -
Shares in unlisted companies184 184
At amortised cost:
Employee loans2,103 1,628
Related party loans12 ,679 2,842
29,077 15,511
E3. Trade and Other Payables
Trade payables10,224 16,127
Accruals11,816 15,565
Employee entitlements4,406 5,534
26,446 3 7, 2 2 6
E4. Borrowings
Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are measured
at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit
or loss over the period of the borrowing using the effective interest method. The fair value of current and non-current borrowings is
approximately equal to their carrying amount.
The Group replaced existing Multi-Option Facility Agreements with Coöperatieve Rabobank U.A., New Zealand Branch (Rabobank)
and Westpac New Zealand Limited (Westpac) with new agreements on 11 November 2021. The existing facility agreement with ANZ
bank New Zealand Limited (ANZ) was also replaced with a new agreement on 11 November 2021. The AUD and USD denominated
loans are designated as a hedge of net investments in foreign operations.
Facility limitUndrawn facility
2023202220232022
Facility
$000's$000's$000's$000's
Rabobank term facility, NZD1,000 1,000 - -
Rabobank term facility, USD11,635 11,635 - -
Rabobank term facility, AUD12,500 - - -
Rabobank seasonal facility, NZD5,000 1,000 5,000 1,000
Westpac term facility, NZD1,000 1,000 - -
Westpac term facility, USD11,635 11,635 - -
Westpac term facility, AUD12,500 - - -
Westpac seasonal facility, NZD5,000 1,000 5,000 1,000
ANZ overdraft, NZD1,000 1,000 1,000 1,000
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

E4. Borrowings (continued)
The floating interest rate is 4.24% to 6.87% (2022: 1.91% to 5.85%) and the term borrowing facility expiry date is 1 July 2025.
Seasonal facilities presented as current borrowings are due for repayment within one year. The bank facilities are secured by a
first ranking security interest granted by each of the Charging Group Companies over all its present and after-acquired property
(including proceeds) and a first ranking security interest over any of the Charging Group Companies’ present and future assets
and undertakings which are not personal property. The bank facilities are also secured by first and exclusive registered mortgages
over property comprising coolstores, orchards and industrial and commercial property owned by members of the Charging Group.
Charging Group Companies as at 31 December 2023 are Scales Corporation Limited, Scales Holdings Limited, Mr Apple New
Zealand Limited, New Zealand Apple Limited, Fern Ridge Produce Limited, Geo.H.Scales Limited, Meateor Foods Limited, Scales,
Logistics Limited and Meateor Group Limited.
Term borrowings
20232022
$000's$000's
Seasonal (current) and term (non-current) borrowings:
Opening balance38,732 36,060
Drawdowns27,306 -
Effect of foreign currency translation(391)2 ,672
65,647 38,732
E5. Other Financial Liabilities
Current financial liabilities at fair value:
20232022
$000's$000's
Foreign currency derivative instruments4,554 7,209
Put options13,970 8,236
18,524 15,445
Non-current financial liabilities at fair value:
Foreign currency derivative instruments6,699 11,802
Put option- 1,586
6,699 13,388
In 2018 the Group acquired 60% of Shelby JV LLC and its subsidiaries Shelby Foods LLC, Shelby Exports Inc, Shelby Cold Storage
LLC, Shelby Trucking LLC and Shelby Properties LLC (collectively, Shelby Group).
As part of the transaction, the Company entered into an agreement with the vendor whereby the vendor has an option to put a
further 5% of total units in Shelby Group to Scales at a value based on a multiple of Shelby Group EBITDA. The obligation to acquire
the ownership interest under the put option is included in other financial liabilities.
E6. Interest Rate Risk
Interest rate risk management
The Group is exposed to interest rate risk as it borrows funds at floating interest rates. Management monitors the level of interest
rates on an ongoing basis and may use interest rate swaps and forward rate agreements to manage interest rate risk.
Interest rate swap contracts and forward rate agreements
Under interest rate swap contracts and forward rate agreements, the Group agrees to exchange the difference between fixed and
floating rate interest amounts calculated on agreed notional principal amounts. Such contracts, some of which can commence in
future reporting years, enable the Group to mitigate the risk of changing interest rates on the cash flow exposures on the issued
floating rate debt. The fair value of these contracts at the reporting date is determined by discounting the future cash flows using the
forward interest rate curves at reporting date and the credit risk inherent in the contracts. The average contracted fixed interest rate
is based on the notional principal amount at balance date.
The Group’s interest rate swap contracts and forward rate agreements are classified as Level 2 in the fair value hierarchy.
Scales Corporation Limited
Notes to the financial statements

Details of interest rate swap contracts for the Group are:
Fixed Interest RateNotional Principal AmountFair Value
202320222023202220232022
%%$000's$000's$000's$000's
Maturity Date
Within 1 year- - - - - -
2-5 years0.97 1.20 17,350 17,364 1,034 1,507
After 5 years- - - - - -
17,350 17,364 1,034 1,507
These interest rate swap contracts and forward rate agreements, exchanging floating rate interest amounts for fixed rate interest
amounts, are designated as cash flow hedges in order to reduce the Group’s cash flow exposure resulting from floating interest
rates on borrowings. The interest rate swap and forward rate agreement payments, and the interest payments on the loans occur
simultaneously, and the amount deferred in equity is recognised in profit or loss over the period that the floating rate interest
payments on debt impact profit or loss.
As the critical terms of the interest rate swap contracts and their corresponding hedged items are the same, the Group performs
a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of the
corresponding hedged items will systematically change in opposite directions in response to movements in the underlying interest
rates. The main source of hedge ineffectiveness in these hedge relationships (which is not material) is the effect of the counterparty
and the Group’s own credit risk on the fair value of the interest rate swap contract, which is not reflected in the fair value of the hedged
item attributable to the change in interest rates. No other sources of ineffectiveness emerged from these hedging relationships.
The sensitivity analysis below has been determined based on the exposure to interest rates for both derivatives and non-derivative
instruments at the reporting date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at
reporting date was outstanding for the whole year. A 1% increase or decrease is used when reporting interest rate risk internally to
key management personnel and represents management’s assessment of the reasonably possible change in interest rates. Impact
on net profit after tax assumes that none of floating interest rate borrowings were hedged.
20232022
+1%-1%+1%-1%
$000's$000's$000's$000's
Impact on net profit after tax158 (158)(131)131
Impact on cash flow hedge reserve net of tax246 (254)337 (352)
E7. Foreign Currency Risk
Foreign currency risk management
Foreign currency risk is the risk that the value of the Group’s assets and liabilities or revenues and expenses will fluctuate due to changes
in foreign exchange rates. The Group is exposed to currency risk as a result of normal trading transactions denominated in foreign
currencies. The currencies in which the Group primarily trades are the Australian dollar, Euro, Canadian dollar, Great Britain pound and
United States dollar, with the largest exposure being to the United States dollar.
Currency risk is managed by the natural hedge of foreign currency receivables and payables and the use of foreign currency derivative
financial instruments. The fair value of foreign currency derivative financial instruments at the reporting date is determined on a
discounted cash flow basis whereby future cash flows are estimated based on forward exchange rates and contract forward rates,
discounted at a rate that reflects the credit risk of various counterparties.
The Group’s forward foreign exchange contracts and foreign exchange options are classified as Level 2 in the fair value hierarchy.
Details of foreign currency instruments at balance date for the Group are:
20232022
Contract ValueFair ValueContract ValueFair Value
$000's$000's$000's$000's
Sale commitments forward foreign exchange contracts371,325 5,888 422,810 (3,795)
Sale commitments foreign exchange options185,240 1,754 158,067 (928)
E6. Interest Rate Risk (continued)
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

These foreign currency instruments are designated as cash flow hedges in order to reduce the Group’s cash flow exposure resulting
from movements in foreign currency exchange rates on anticipated future transactions. It is anticipated that the sales will take place
during the 2024 to 2028 financial years at which stage the amount deferred in equity will be released into profit or loss.
For hedges of highly probable forecast sales and purchases, as the critical terms (i.e. the notional amount, life and underlying)
of the foreign currency instruments and their corresponding hedged items are the same, the Group performs a qualitative
assessment of effectiveness and it is expected that the value of the instruments and the value of the corresponding hedged items
will systematically change in opposite directions in response to movements in the underlying exchange rates. The Group uses the
hypothetical derivative method for the hedge effectiveness assessment and measurement of hedge ineffectiveness. As for the
hedge of the net investment in Meateor US LLC sub-group, the Group assesses effectiveness by comparing the nominal amount of
the net assets designated in the hedge relationship with the nominal amount of the hedging instrument. This is a simplified approach
because the currency of the exposure and hedging instruments perfectly match and the Group excludes from the designation the
foreign currency basis spread.
The following table demonstrates the sensitivity to a reasonably possible change of 5% in the value of New Zealand dollar against
other foreign currencies, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the
fair value of monetary assets and liabilities. The impact on the Group’s equity is due to changes in the fair value of forward exchange
contracts designated as cash flow hedges.
20232022
+5%-5%+5%-5%
$000's$000's$000's$000's
USD
Impact on net profit after tax(655)724 (783)865
Impact on cash flow hedge reserve net of tax(15,408)13,943 (15,976)14,479
AUD
Impact on net profit after tax(4)4 644 (1,082)
Impact on cash flow hedge reserve net of tax- - 176 176
EUR
Impact on net profit after tax(10)11 (2)2
Impact on cash flow hedge reserve net of tax(1,886)1,704 (2 ,14 3)1,940
GBP
Impact on net profit after tax- - (7)7
Impact on cash flow hedge reserve net of tax(801)720 (991)898
CAD
Impact on net profit after tax- - - -
Impact on cash flow hedge reserve net of tax(216)195 (383)347
E8. Categories of Financial Instruments
20232022
$000's$000's
Financial assets:
Amortised cost1 2 3 , 2 74 111,672
Derivative instruments in designated hedge accounting relationships19,929 15,795
Fair value through profit or loss355 184
143,558 127,651
Financial liabilities:
Amortised cost98,134 86,829
Derivative instruments in designated hedge accounting relationships11,253 19,011
Fair value through profit or loss13,970 9,822
123,357 115,662
The carrying amount of financial instruments at amortised cost approximates their fair value.
E7. Foreign Currency Risk (continued)
Scales Corporation Limited
Notes to the financial statements

E9. Maturity Profile of Financial Liabilities
Liquidity risk management
The Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities.
The following table detail the Group’s remaining contractual maturity for its financial liabilities. The tables have been drawn up based
on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table
includes both interest and principal cash flows. Foreign currency derivative liabilities are presented below at fair value.
Within 3 months
4 months to
1 year1-5 years Total
$000's$000's$000's$000's
2023
Trade and other payables26,446 - - 26,446
Dividend declared6,041 - - 6,041
Put options13,970 - - 13,970
Borrowings1,079 3,238 67,7 9 3 72,110
Foreign currency derivatives747 3,807 6,699 11,253
48,283 7,0 4 5 74,492 129,820
2022
Trade and other payables3 7, 2 2 6 - - 3 7, 2 2 6
Dividend declared8,503 - - 8,503
Put options8,236 - 1,586 9,822
Borrowings570 2 39,885 40,457
Foreign currency derivatives2,083 5,076 11,852 19,011
56,618 5,078 53,323 115,019
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

F. Group Structure
IN THIS SECTION
This section provides information to help readers understand the Scales Group structure and how it affects the financial
position and performance of the Group. In this section there is information about subsidiaries and non-controlling interests.
F1. Subsidiary Companies
Holding
Subsidiary CompaniesPrincipal Activity
Country of
Incorporation20232022Balance Date
Fern Ridge Produce LimitedTrading companyNew Zealand 100%100%31 December
Geo. H. Scales Limited Non trading companyNew Zealand 100%100%31 December
Longview Group Holdings LimitedNon trading companyNew Zealand 100%100%31 December
Meateor Foods Australia Pty LimitedTrading companyAustralia100%100%31 December
Meateor Foods LimitedTrading companyNew Zealand 100%100%31 December
Meateor Group LimitedHolding companyNew Zealand 100%100%31 December
Meateor US LLCHolding companyUnited States100%100%31 December
Mr Apple New Zealand LimitedTrading companyNew Zealand 100%100%31 December
New Zealand Apple LimitedTrading companyNew Zealand 100%100%31 December
Scales Employees LimitedCustodial companyNew Zealand 100%100%31 December
Scales FI Group Holding Pty LtdHolding companyAustralia100%100%31 December
Scales Holdings LimitedHolding companyNew Zealand 100%100%31 December
Scales Logistics LimitedFreight consolidatorNew Zealand 100%100%31 December
Scales Logistics Australia Pty LtdFreight consolidatorAustralia100%100%31 December
Selacs Insurance LimitedInsurance companyNew Zealand 100%100%31 December
Shelby Cold Storage, LLC Coldstore operatorUnited States60%60%31 December
Shelby Exports, IncNon trading companyUnited States60%60%31 December
Shelby Foods, LLC Trading companyUnited States60%60%31 December
Shelby JV LLCHolding companyUnited States60%60%31 December
Shelby Properties LLCNon trading companyUnited States60%60%31 December
Shelby Trucking LLCTrading companyUnited States60%60%31 December
Subsidiary companies are controlled by the Company. Control is achieved when the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the company
loses control of the subsidiary.
Scales Corporation Limited
Notes to the financial statements

F2. Non-Controlling Interests
The following non-wholly owned subsidiaries of the Group have material non-controlling interests.
Proportion of equity interest held by non-controlling interests:
Subsidiary companies:Country of incorporation and operation
Non-controlling holding
20232022
Shelby JV LLC and its subsidiariesUnited States40%40%
The summarised financial information in respect of the Group’s subsidiary that have material non-controlling interests as at 31
December 2023, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below:
20232022
$000's$000's
Statement of financial position
Current assets31,013 29,827
Non-current assets11,362 6,163
Current liabilities(8,174)(11,697)
Non-current liabilities(140)(4 35)
Net assets34,060 23,858
Attributable to:
Equity holders of the Company20,436 14,315
Non-controlling interests13,624 9,543
Note that a put option on 5% of the non-controlling interest shareholding is recognised as a financial liability, separate from non-
controlling interest. Refer to note E5 for disclosures regarding the put option.
Total dividends paid to non-controlling interests15,312 1 7,3 1 3
Statement of comprehensive income
Total revenue214,624 220,425
Net profit for the year48,647 47,155
Attributable to:
Equity holders of the Company29,188 28,293
Non-controlling interests19,459 18,862
Statement of cash flows
Net cash provided by operating activities45,350 48,064
Net cash used in investing activities(6,160)(4,238)
Net cash used in financing activities(38,346)(43,344)
Net increase in net cash844 482
Annual Report - Year Ended 31 December 2023
Notes to the financial statements

G. Other
IN THIS SECTION
This section includes the remaining information relating to Scales’ financial statements which is required to comply with NZ IFRS.
G1. Capital Commitments
20232022
$000's$000's
Commitments entered into in respect of apple trees purchases as at balance date1,540 2,530
Commitments entered into in respect of property, plant and equipment purchases as at
balance date
469 371
G2. Leases
The Group as a lessee
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognised a right-of-use asset
and a corresponding liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as
leases with a lease term of twelve months or less) and leases of low value assets. For these leases, the Group applies the practical
expedient and recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in which economic benefits from the lease assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing
rate (IBR).
Lease payments included in the measurement of the lease liability comprise:
• fixed lease payments (including in-substance fixed payments), less any lease incentives;
• variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
• the amount expected to be payable by the lessee under residual value guarantees;
• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
• payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The lease liability is presented as a separate line in the consolidated statement of financial position.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the
effective interest method) and by reducing the carrying amount to reflect the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
• the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is
remeasured by discounting the revised lease payments using a revised discount rate;
• the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in
which case the lease liability is remeasured by discounting the revised lease payments using the initial discount rate;
• a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is
remeasured by discounting the revised lease payments using a revised discount rate.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before
the commencement date and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and
impairment losses.
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located
or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and
measured under NZ IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Right-of-use assets are depreciated over the shorter period of either the lease term or the useful life of the underlying asset. If a
lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a
purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at
the commencement date of the lease.
The right-of-use assets are presented as a separate line in the consolidated statement of financial position.
The Group applies NZ IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any
identified impairment loss under this standard.
Scales Corporation Limited
Notes to the financial statements

Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use
asset. The related payments are recognised as an expense in the period in which the event or condition that triggers those payments
occurs and are included in the line “Administration and operating expenses” in the statement of comprehensive income.
As a practical expedient, NZ IFRS 16 permits a lessee to not separate non-lease components, and instead account for any lease and
associated non-lease components as a single arrangement.
The lease modification in the current year relates to leases that were not renewed due to damage from Cyclone Gabrielle. The
impact of not renewing these leases was the derecognition of the lease liability and right-of-use asset relating to these leases. The
difference has been recorded as a gain on lease modification in the statement of comprehensive income. In the 31 December 2022
year the modification related to the reassessment of renewal terms for leases extending longer than 10 years. The impact reduced
the lease liability and right-of-use asset proportionately based on the reduction in the overall lease term assumed. The difference
has been recorded as a loss on lease modification in the statement of comprehensive income.
Right-of-use assets
Land and
buildings
Plant and
equipment
Office equipment
motor and
vehiclesTotal
$000's$000's$000's$000's
Carrying Amount
Balance at 1 January 2022
71,667 300 4,464
76,431
Additions2,327 796 3,567
6,690
Lease modification(24,989)- -
(24,989)
Depreciation expense(6,332)(390)(2,365)
(9,087)
Balance at 31 December 202242,673 706 5,666 49,045
Additions9,140 - 2,027
11,167
Lease modification(1,230)- (699)
(1,929)
Depreciation expense(6,331)(412)(1,968)
(8,711)
Balance at 31 December 202344,252 294 5,026 49,572
20232022
$000's$000's
Amounts recognised in profit and loss
Depreciation expense on right-of-use assets8,711 9,087
(Gain) loss on lease modification(177)1,854
Interest expense on lease liabilities3,14 4 2,953
Expense relating to short-term leases and low-value assets1,990 2,218
Lease liabilities
Current10,963 10,925
Non-current44,670 44,066
Maturity analysis (undiscounted cash flows)
Year 110,963 10,932
Year 210,059 9,930
Year 39,489 9,065
Year 48,611 8,466
Year 56,698 7,578
Onwards30,517 26,483
76,337 72,454
Cash outflows for leases
Interest on lease liabilities3,14 4 2,953
Repayments of lease liabilities8,420 8,281
Short-term leases and low-value asset leases1,990 2,218
13,554 13,452
G2. Leases (continued)
Annual Report - Year Ended 31 December 2023
Notes to the financial statements