2025 Annual Results Announcement
Scales Corporation Limited
Head Office: 52 Cashel Street | Christchurch 8013 | New Zealand
Postal: PO Box 1590 | Christchurch 8140 | New Zealand
Phone: +64 3 379 7720
scalescorporation.co.nz
NZX & Media Release
25 February 2026
GROWTH STRATEGIES DELIVERING RECORD RESULTS
Highlights – 12 Months to 31 December 2025
Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its FY2025 full
year results. Reported NPAT
1
Attributable to Shareholders was $101.0 million (FY2024 (restated)
2
:
$30.3 million). Reported basic earnings per share for FY2025 were 70.7 cents per share
(FY2024 (restated): 21.3 cents per share).
Underlying
3
NPAT Attributable to Shareholders was $61.8 million (FY2024 (restated): $34.1 million)
and Underlying earnings per share for FY2025 were 43.3 cents per share (FY2024 (restated): 24.0
cents per share).
• Group FY2025 financial results:
o Underlying NPAT of $77.6 million, up 45 per cent (FY2024 (restated): $53.4 million)
o Reported NPAT of $117.7 million, up 137 per cent (FY2024 (restated): $49.6 million)
o Underlying EBITDA
4
of $137.6 million, up 50 per cent (FY2024 (restated): $91.7 million)
o Revenue of $899.9 million, up 54 per cent (FY2024: $584.6 million)
• Divisional summary:
o The Horticulture division delivered an outstanding result through increased volumes, prices
and improved variety mix
o Solid performance by Global Proteins with strong results for Shelby, Meateor Australia,
Meateor NZ and Fayman International
o Another record Logistics result driven by a significant increase in volumes
1
Net Profit After Tax
2
FY2024 results have been restated for an increase in apple tree valuations
3
Underlying results exclude some New Zealand International Financial Reporting Standards (NZ IFRS) non-cash and other
adjustments. In line with current market practice, “Underlying” includes the effects of NZ IFRS 16 Leases. A reconciliation
between Net Profit and Underlying Net Profit, EBITDA and Underlying EBITDA is provided in Appendix A of our annual results
presentation pack
4
Earnings Before Interest, Tax, Depreciation and Amortisation
2
Mike Petersen, Chair of Scales Corporation, noted: “By any measure, FY2025 has been an
outstanding year for Scales Corporation and its divisions. At a time when international markets are
facing unprecedented change and geopolitical tension, our teams have excelled to deliver us a superb
performance.”
“During 2025 we increased our investments in Shelby, Meateor Australia, Fayman International and
ANZ Exports, further progressing our growth strategy. As a result of these investments, the Global
Proteins FY2027 Underlying EBITDA target has increased from $70 million to $85 million.”
Andy Borland, Managing Director of Scales Corporation, commented: “Horticulture delivered an
outstanding result driven by increased apple export volumes and average prices. Our Bostock
acquisition last year was also a key component of this result, allowing us to fast-track our long-term
strategy of investing in apple varieties targeted to the Asia & Middle East markets.”
“The increased investments in our Global Proteins joint venture businesses are strategically important
for our long-term growth objectives. Each of the businesses is operating well, with Shelby, Meateor
Australia, Meateor NZ and Fayman International performing particularly strongly.”
“We continue to have a healthy financial position. Net debt as at 31 December 2025 was $84.1 million
(net cash of $12.5 million as at 31 December 2024), reflecting the investments made during FY2025 in
Global Proteins’ joint venture businesses.”
During 2025, Scales paid dividends of 15.0 cents per share
5
. Dividend payments for FY2025 are
likely to be made in two instalments, with the first instalment of 12.5 cents per share having been paid
on 23 January 2026. A second instalment will be reviewed and advised on in early May 2026.
“As ever, the Board and I would like to thank each Scales team member for their hard work and
energy. The Group and its results would not be what it is without their commitment and enthusiasm.”
Divisions
Global Proteins
Underlying EBITDA for Global Proteins was $73.9 million (FY2024: $55.4 million), an increase of
33 per cent.
Mr Borland stated “The division delivered increases in both petfood ingredients and edible proteins
sales volumes.”
5
Scales declared the following dividends in respect of FY2024, which were paid in 2025:
• an interim dividend of 7.25 cents per share on 4 December 2024, paid on 17 January 2025
• a final dividend of 7.75 cents per share on 30 April 2025, paid on 11 July 2025
3
“We also realised the benefits of our increased investments in our joint venture businesses with a solid
performance by Shelby whilst it transitioned to a new toll processing facility and Meateor Australia and
Meateor NZ performing significantly ahead of forecast with margins ahead of expectations. Fayman
International also had a strong performance, increasing sales to both the South-East Asia and United
States markets.”
Horticulture
The Horticulture division produced an Underlying FY2025 EBITDA of $65.2 million (FY2024 (restated):
$37.7 million), an increase of 73 per cent.
Mr Borland remarked “Horticulture produced an outstanding result. Increased apple export volumes
and average prices were enhanced by the amalgamation of Bostock orchards, which performed
ahead of expectations. In addition, grower returns were positively impacted by an increased
proportion of Premium variety volumes such as Dazzle
TM
and Posy
TM
.
Profruit delivered another exceptional performance underpinned by strong sales prices in our export
markets.”
“Mr Apple’s own-grown export volume of 3,681k TCEs
6
was 21 per cent up on last year (2024: 3,033k
TCEs), with our strategically important markets of Asia and Middle East comprising 84 per cent of total
fruit sold (2024: 79 per cent).”
“Premium volumes accounted for approximately 74 per cent of total export sale volumes, with
significant growth in Dazzle
TM
and Posy
TM
as well as Red Sports varieties. We estimate that Premium
apple varieties will account for around 80 per cent of export volumes by 2027.”
Logistics
Logistics delivered another record Underlying EBITDA of $7.6 million (FY2024: $6.9 million), an
increase of 10 per cent.
Mr Borland noted “Logistics processed a significant increase in volumes due to strong volumes from
the dairy sector and a positive cherry season, providing an extremely robust result for the division. It
also benefited from strong apple volumes.”
“Its strategy of supporting both internal and external customers is proving to be beneficial to its growth
strategy.”
6
Tray carton equivalent, a measure of apple and pear weight, defined as 18.6kg packed weight which equates to 18.0kg sale
weight
4
Outlook
Mr Petersen commented: “The exceptional Group performance in FY2025, particularly in the
Horticulture division, was aided by a number of positive earnings drivers.”
“In FY2026, Global Proteins is expected to perform strongly and continue to realise the benefits of its
increased investments. Mr Apple has commenced picking and packing for the 2026 apple season,
with a crop of around 3.5 million TCEs forecast. Pricing is expected to be favourable. Logistics is
expected to contribute positively and has seen continued strong air freight demand in the year to
date.”
“Accordingly, the Board is pleased to confirm the previously advised FY2026 guidance of Underlying
Net Profit after Tax Attributable to Shareholders of between $50.0 million to $55.0 million, implying an
Underlying Net Profit After Tax range of $67.0 million to $73.0 million and an Underlying EBITDA
range of $129.0 million to $136.0 million.”
Mr Petersen also stated “I would like to add my appreciation to all Scales teams for their ability to
successfully execute the strategic objectives of the Scales Group. We are fortunate to have such a
dedicated workforce, with each of them embracing the Scales culture. On behalf of the Scales’
Directors and Shareholders, thank you.”
Contact
Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021 975 999,
email: andy.borland@scalescorporation.co.nz
About Scales Corporation
Scales Corporation is a diversified investor operating predominantly in the agribusiness sector. It
comprises three operating divisions: Global Proteins, Horticulture, and Logistics. The Company’s
diverse spread of activities gives Scales Corporation global operational exposure. Scales Corporation
was founded in 1897 as a shipping business by George Scales. Today it has operations across New
Zealand, Australia, United States and Europe. Find out more at www.scalescorporation.co.nz.
---
Bringing Nutrition
to the World
Annual Results Presentation
For the Year Ended 31 December 2025
25 February 2026
Scales Corporation Limited
2Scales Corporation Limited – 2025 Full Year Results
Agenda
01. FY25 Results
Summary
Group Performance
Divisional Performance
Capital Management
Sustainability and Governance
02. FY26 Outlook
03. Appendices
NZ IFRS Reconciliation
Disclaimer
Dazzle
TM
apples in Clive orchard
01.
FY25
Results
Mr Apple exhibition, Vietnam
Shelby’s new in-plant collection and cooling system
Summary
Production at the Esro Petfood plant
5Scales Corporation Limited – 2025 Full Year Results
FY25 Summary
Record Group result:
Strong performance across all divisions
Includes positive impact from increased shareholdings in joint
venture businesses
Delivered record results across all earning measures:
Underlying
1
EBITDA of $137.6m (FY24 (Restated
2
): $91.7m), up 50%
Underlying NPAT of $77.6m (FY24 (Restated): $53.4m), up 45%
Underlying NPAT Attributable to Shareholders of $61.8m
(FY24 (Restated): $34.1m), up 82%
Reported NPAT Attributable to Shareholders of $101.0m
(FY24 (Restated): $30.3m), up 233%
Outstanding Horticulture result:
Increased apple export volumes and average prices
Higher proportion of Premium varieties
Bostock acquisition fast-tracked long-term strategy of investing in
apple varieties targeted to the Asia & Middle East market
Strong performance by Global Proteins:
Shelby Foods continued its positive performance
Strong results for Meateor Australia, Meateor NZ and Fayman
International
Esro Petfood continued to progress through its start-up phase
Another record Logistics result driven by a significant increase in
volumes
1.Underlying Results exclude some New Zealand International Financial Report Standards (NZ IFRS) non-cash and other adjustments. The Board and management believe that Underlying Results more accurately demonstrate the operational performance of the Group.
Underlying NPAT and Underlying EBITDA are shown before the deduction of share of Non-Controlling Interests. Note that our definition of “Underlying” includes the effects of NZ IFRS 16 Leases in line with current market practice. All Underlying result numbers, including
comparatives, are inclusive of NZ IFRS 16 effects. A reconciliation of Underlying to Reported measures is provided in Appendix A
2.FY24 results have been restated for an increase in apple tree valuations
6Scales Corporation Limited – 2025 Full Year Results
$137.6m
Underlying EBITDA
(2024 (Restated): $91.7m)
165,760 MT
petfood ingredients sold
1
(2024: 152,149 MT)
By the Numbers
31,468
TEU
2
equivalents managed
(2024: 30,068)
$899.9m
revenue
(2024: $584.6m)
14.6%
ROCE
4
(2024 (restated): 14.3%)
15.0 cents
dividends per share paid
(2024: 8.5 cents)
3,681,000
TCEs of own-grown
apples exported
3
(2024: 3,033,000)
$84.1m
net debt
(2024: $12.5m net cash)
1.Includes 100% of petfood ingredient volumes from relevant businesses; i.e. total petfood ingredient volumes controlled directly and indirectly by Global Proteins
2.TEU is a Twenty-foot Equivalent Unit, a unit of cargo capacity to describe container volumes
3.TCE is a Tray Carton Equivalent, a measure of apple and pear weight, defined as 18.6kg packed weight which equates to 18.0kg sale weight. Includes own grown and external grower volumes including those volumes exported by Fern Ridge Fresh
4.Return on Capital Employed, calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as non-current assets plus working capital (excluding cash, overdrafts and borrowings, NZ IFRS 16 lease liabilities, dividends declared, derivative assets /
liabilities and employee loans)
Group
Performance
Inside the Profruit production facility
8Scales Corporation Limited – 2025 Full Year Results
Revenue
$m2025
2024
(Restated)
% chg.
1
2025
2024
(Restated)
% chg.
1
2025
2024
(Restated)
% chg.
1
20252024
% chg.
1
Underlying (excluding NZ IFRS 16)63.534.684%79.253.947%124.479.457%899.9584.654%
NZ IFRS 16 Leases(5.0)(0.5)(5.0)(0.5)8.612.3 - -
NZ IFRS 16 Leases - normalisations
2
3.4 - 3.4 - 4.7 - - -
Underlying (including NZ IFRS 16)61.834.182%77.653.445%137.691.750%899.9584.654%
NZ IFRS & other adjustments:
Impairment of non-current assets and goodwill2.6(1.9)2.6(1.9)3.3(2.5) - -
Other NZ IFRS adjustments
3
36.6(1.8)37.5(1.8)28.9(1.3) - -
Reported
4
101.030.3233%117.749.6137%169.987.993%899.9584.654%
Notes:
1. %'s are calculated based on non-rounded figures, figures may not sum due to rounding
2. Relates to the sale and leaseback of the Whakatu Coolstore
3. Includes a change in the gross liability on put options of nil in 2025 (2024: $2.5m)
4. A full reconciliation between Underlying and Reported earnings is provided in Appendix A
NPAT Attributable to
ShareholdersNPATEBITDA
Group Financial Performance
Group growth strategies are delivering exceptional results
9Scales Corporation Limited – 2025 Full Year Results
Trends in Group Financial Performance
Underlying NPAT
Attributable to Shareholders
Underlying EBITDARevenue
10Scales Corporation Limited – 2025 Full Year Results
Strong results for Shelby,
Meateor Australia, Meateor
NZ and Fayman International
Esro Petfood continued to
progress through its start-up
phase
Outstanding Horticulture result
through increased volumes,
prices and improved variety mix
Result enhanced by the Bostock
orchards acquisition in FY24
Another record Logistics
result driven by a significant
increase in volumes
Divisional Overview
Underlying EBITDA growth across all operating divisions
11Scales Corporation Limited – 2025 Full Year Results
Divisional Performance
% chg.
$m1H252H252025Margin1H24
2H24
(Restated)
2024
(Restated)
Margin
2025 v 2024
(Restated)
Global Proteins29.744.173.915.5%29.625.855.420.7%33%
Horticulture53.212.065.219.1%30.07.737.715.1%73%
Logistics6.11.57.66.4%3.83.16.97.0%10%
Corporate(2.3)(6.7)(9.1)N/A(2.9)(5.3)(8.2)N/A10%
Underlying EBITDA86.750.9137.615.3%60.531.291.715.1%50%
Underlying NPAT56.920.777.68.6%38.415.053.49.2%45%
Underlying NPAT
Attributable to Shareholders48.912.961.86.9%28.55.634.15.9%82%
Notes:
1. Prepared on an Underlying basis. A reconciliation to Reported earnings is provided in Appendix A
2. %'s are calculated based on non-rounded figures, figures may not sum due to rounding
3. NZ IAS 41 Agriculture requires unsold agricultural produce to be measured at fair value less costs to sell meaning the expected profit on unsold fruit is
recognised in the interim result, giving rise to seasonality in profitability as shown above
12Scales Corporation Limited – 2025 Full Year Results
Trends in Divisional Underlying EBITDA Performance
Global ProteinsHorticultureLogistics
13Scales Corporation Limited – 2025 Full Year Results
$m
2025
2024
(Restated)
Net working capital
118.2
34.5
Non-current assets
602.0
441.6
Capital employed
720.2
476.1
Non-current & other liabilities
(179.7)
(102.4)
Net (debt) / cash
(84.1)
12.5
Total equity
456.5
386.3
Financial Position
Overall financial position and net debt reflects investments made
during FY25 in Global Proteins’ joint venture businesses
Financial position allows for further investment opportunities
Net Cash / (Debt) Reconciliation ($m)Summary Financial Position ($m)
Divisional
Performance
Inside Logistics’ Auckland warehouse and chiller facility
15Scales Corporation Limited – 2025 Full Year Results
April 2025
Increased investment in Shelby from 60% to 67.5%
Investment cost of USD24.4m
September 2025
Increased investment in:
Meateor Australia from 50% to 100%
Fayman International from 50% to 100%
ANZ Exports from 42.5% to 85%
A total acquisition price of AUD91.05m
As a result of these investments, the Global Proteins
FY27 Underlying EBITDA target has increased from $70m to $85m
FY25 M&A Summary
Global Proteins – increasing joint venture ownership
Inside the Meateor Australia processing plant
16Scales Corporation Limited – 2025 Full Year Results
$m
2025
2024
% change
Revenue
1
477.6
266.8
79%
Underlying EBITDA
73.9
55.4
33%
Underlying EBIT
69.1
53.6
29%
MT
2025
2024
% change
Petfood Ingredients Volume Sold
165,760
152,149
9%
Edible Proteins Volume Sold
120,673
109,742
10%
1 Excludes revenue from Meateor NZ and Esro Petfood and revenue from Meateor Australia and Fayman until 30 September 2025 (date of additional investment)
2 2022 edible protein volumes are for a 2 month period
3 2023 petfood ingredient volumes exclude those sold at Meateor Australia and Esro Petfood, both operational by 4Q23, due to low volumes
4 2024 and 2025 petfood ingredient volumes include those sold at all Global Proteins’ businesses but excludes inter-company sales (inter-company sales not excluded in
prior years due to immaterial volumes)
Underlying EBITDA ($m)
Volumes Sold (MT 000s)
Financial Performance
KPIs
Global Proteins – Financial Result
Delivering earnings and volume growth
17Scales Corporation Limited – 2025 Full Year Results
Increases in both petfood ingredients and edible proteins sales volumes of 9% and 10% respectively
Realised benefits of increased investments in joint venture businesses:
Shelby had a solid performance, whilst transitioning to a new toll processing facility
Meateor Australia and Meateor NZ performed ahead of forecast with margins up on
expectations
Fayman International had a strong performance, increasing sales to both the South East Asia
and US markets
Esro Petfood continued to progress through its start-up phase, whilst also transitioning to a new
processing facility
Global Proteins – Financial Result (cont.)
Strong result whilst implementing growth strategies
Inside Shelby’s Cherokee plant
18Scales Corporation Limited – 2025 Full Year Results
Slight decrease in revenue / kg due to change in
proportionate business mix
Improved margins across Meateor NZ, Meateor Australia
and Esro Petfood
Global Proteins – Margin Performance
Revenue and margins influenced by changes in business mix
Petfood Ingredients Revenue and Underlying EBITDA / KG*
* Margins calculated above may differ slightly from previously reported numbers due to adjustments made to reflect the true operational performance of the petfood ingredients businesses
19Scales Corporation Limited – 2025 Full Year Results
Global Proteins – Current Initiatives Update
Our growth target is underpinned by 9 key projects across NZ, Australia, the US and Europe
Other ongoing projects
Partnering in the establishment of a fish and poultry petfood
ingredients trading joint venture in the US
Feasibility study for a second European site paused
Options for additional capacity in New Zealand close to finalisation
Completed projects
✓New toll processing plant in the United States increasing volumes
✓New processing facility in the Netherlands performing well and producing
high quality product
✓Blending project in the United States continued to operate successfully
during FY25
✓First new in-plant collection and cooling system in the United States
functioning well
✓Second new in-plant collection and cooling system in the United States
commissioned December 2025, ahead of schedule
✓Meateor Australia traded ahead of forecast and significantly profitable
20Scales Corporation Limited – 2025 Full Year Results
$m2025
2024
(Restated)
% change
Revenue341.8 248.9 37%
Underlying EBITDA65.2 37.7 73%
Underlying EBIT42.1 17.8 136%
Underlying EBITDA ($m)
Financial Performance
Horticulture – Financial Result
Long-term strategy bearing fruit
Increased apple export volumes and average prices, enhanced by the FY24 Bostock acquisition
Grower returns positively impacted by an increased proportion of Premium variety volumes such as Dazzle
TM
and Posy
TM
Profruit delivered another excellent performance underpinned by strong sales prices in our export markets
21Scales Corporation Limited – 2025 Full Year Results
Exp ort Volumes (TCE 0 0 0 s)
2025
2024
% c hange
Mr Apple own-grown volumes
3,681
3,033
21%
External grower volumes*
1,624
1,094
49%
Total volumes exported
5,305
4,126
29%
Profruit Volume (0 0 0 L)
Juice Concentrate Sold
6,537
7,785
-16%
Volumes
Horticulture – Volumes
Substantial increase in volumes
21% increase in Mr Apple total own-grown export volumes, aided by:
Very good growing conditions during the 2025 season
The amalgamation of Bostock orchards, which performed ahead of
expectations
Premium volumes accounted for 74% of total export sale volumes:
Significant increases in Dazzle
TM
and Posy
TM
Our strategically important Asia & Middle East markets continued to grow with
sales comprising 84% of total export fruit sold
Profruit continued to generate strong export sales and pricing:
The volume of juice concentrate sold reflected a more normal year
compared to the record volume in 2024
* External grower volumes comprise external grower volumes handled by Mr Apple and Fern Ridge Fresh
Profruit Sales Volumes (L 000s)
22Scales Corporation Limited – 2025 Full Year Results
Movement in Premium Volumes (TCE 000s)Mr Apple Own Export Volumes (TCE 000s)
Horticulture – Volumes (cont.)
Record volume of Premium apples sold
23Scales Corporation Limited – 2025 Full Year Results
It is currently projected that Premium varieties will account for ~80% of export volumes by 2027 as a result of:
The integration of the Bostock orchards
Mr Apple’s ongoing orchard redevelopment programme
Development of new Premium apple varieties
Mr Apple Own Export Volumes – Actual / Forecast (TCE 000s)
Horticulture – Forecast Volumes
Continued focus on Premium varieties
24Scales Corporation Limited – 2025 Full Year Results
Ap p le Prices b y Variety (N ZD / TCE, FOB)
2025
2024
% c hange
Premium Varieties
52.7
45.6
16%
Traditional Varieties
41.1
37.6
9%
Weighted Average all Apples
49.7
43.4
15%
FX Rates
2025
2024
% change
NZD:USD
0.62
0.63
-2%
NZD:EUR
0.54
0.54
0%
NZD:GBP
0.48
0.48
-1%
NZD:CAD
0.82
0.85
-3%
Apple Prices and Exchange Rates
Horticulture – Pricing
Increases in pricing for both Premium and Traditional varieties
Price increases facilitated by strong demand for Mr Apple’s
Premium apple varieties:
In line with long-term strategy of investing in apple varieties
targeted to the Asia & Middle East markets
Fast-tracked by Bostock acquisition in 2024
Supported by favourable FX rates
Benefited from continued investment in marketing and brand
presence for Mr Apple and Premium varieties such as Dazzle
TM
and Posy
TM
25Scales Corporation Limited – 2025 Full Year Results
Horticulture –Marketing
Dazzle
TM
sponsorshipGuangzhou and Shanghai metro advertisingMini show for Queen launch in Hema stores
Expanding our consumer marketing and retail branded presence in key Asia markets
Relaunched our Tmall store (B2C online marketplace)
Launched Mr Apple channels on RedNote and Douyin (Chinese social
media and e-commerce platforms)
Continued to provide Dazzle
TM
sponsorship of active-type events
Carried out metro advertising in Shanghai, Guangzhou and Taipei
Launched a store locator on Mr Apple’s official WeChat page
26Scales Corporation Limited – 2025 Full Year Results
Underlying EBITDA ($m)
Financial Performance and KPIs
Logistics – Performance and Update
Record Logistics result
Significant increase in volumes:
Continued growth in the dairy sector
Benefited from good growing seasons for both apples and cherries
$m
2025
2024
% change
Revenue
119.3
98.8
21%
Underlying EBITDA
7.6
6.9
10%
Underlying EBIT
6.5
5.9
11%
Volumes
2025
2024
% change
Ocean Freight Volume (TEUs)
31,468
30,068
5%
Airfreight Volume (tonnes)
13,769
7,615
81%
Capital
Management
Inside the Profruit production facility
28Scales Corporation Limited – 2025 Full Year Results
2025
2024
(Restated)
Global Proteins19.8%45.3%
Horticulture12.3%5.4%
Logistics62.6%54.1%
Group14.6%14.3%
Target12.5%12.5%
Maintenance 20252024
Global Proteins6.31.6
Horticulture8.24.4
Logistics0.20.9
Other0.00.0
14.87.0
Margin Improvement 20252024
Horticulture6.87.0
6.87.0
Growth 20252024
Global Proteins - 4.1
- 4.1
Cyclone 20252024
Horticulture - 1.1
- 1.1
Total Capital Expenditure21.619.0
Capital Expenditure ($m)
ROCE and Capital Expenditure
Investing in strategic priorities
Exceeded target Group ROCE:
Movement in Global Proteins’ ROCE due the investment in Meateor Australia,
Fayman International and ANZ Exports
Continued investment into margin improvement projects at Mr Apple:
Ongoing orchard redevelopment into Premium volumes
New high-pressure apple washer at Whakatu packhouse commissioned
Other material capital expenditure related to:
Upgrade to the RSE accommodation at Mr Apple
Capital works at Shelby for its second in-plant collection and cooling system
ROCE
Sustainability
and
Governance
The ex-Bostock Riverslea Dazzle
TM
orchard
30Scales Corporation Limited – 2025 Full Year Results
Sustainability Update
Materiality
Completed a refreshed double materiality assessment (second since 2020) recognising the evolution of our business and the importance of
understanding stakeholder priorities
People
Delivered a Group engagement survey across all New Zealand operating subsidiaries, establishing a baseline to support a planned global rollout in 2027
Continued delivery of Mr Apple’s 5-year people strategy including leadership development, succession planning, HR digitisation and performance &
reward improvements
Progressed health, safety and wellbeing maturity, completing independent assessments and establishing a multi-year improvement roadmap
Environment
Voluntarily completed our third Climate Statement, which will be published in April 2026
Obtained limited assurance over Scope 1 and 2 emissions and progressed analysis of Scope 3 raw material emissions to strengthen data quality
and decision-making
Advanced regenerative planting trials at Mr Apple, now in their third year across two orchards, with early indicators of improved soil health and
fruit quality
Delivered targeted environmental and energy efficiency improvements across Global Proteins operations in the United States, Europe, Australia and
New Zealand
Completed water metering rollout across all orchards and expanded telemetry to improve irrigation efficiency and climate resilience
31Scales Corporation Limited – 2025 Full Year Results
Would like to recognise the significant contribution and support of Alan Isaac who retired in October 2025:
Alan served on the Board for over 11 years, appointed just prior to Scales’ listing
Chair of the Audit & Risk Management Committee and Chair of the Due Diligence Committee as part of the listing
process
Brought broad and deep accounting and financial knowledge as well as well-considered counsel on a wide variety of
issues
Appointed Paul Munro as Independent Non-Executive Director and Chair of Scales’ Audit & Risk Management Committee,
effective October 2025:
Paul has extensive governance experience from a wide range of public and private entities
Appointed new CFO February 2026:
Steve Kennelly stepping down as CFO, maintaining Company Secretary role
Ben Washington appointed CFO, commencing June 2026
Governance
Refreshing our Director and Senior Management Team
Alan Isaac
Paul Munro
02.
FY26
Outlook
The Esro Petfood plant
33Scales Corporation Limited – 2025 Full Year Results
FY26 Outlook
Group
Directors confirm the previously advised Guidance range of Underlying
Net Profit after Tax Attributable to Shareholders of between $50.0 million
and $55.0 million, implying:
An Underlying Net Profit after Tax range of between $67.0 million
and $73.0 million
An Underlying EBITDA range of between $129.0 million and
$136.0 million
Geopolitical uncertainty is expected to continue through 2026
In providing this Guidance, the Directors note the comments (right)
regarding each of the divisions
Global Proteins
The division is expected to perform strongly and continue to realise
the benefits of its increased investments
Horticulture
A crop of ~3.5 million TCEs is forecast for Mr Apple, with picking and
packing commenced for the season
Pricing expected to be positive, impacted by a number of factors
including favourable foreign exchange rates
Profruit continues to experience positive demand
Logistics
Logistics is expected to contribute positively
03.
Appendices
Inside Logistics’ Auckland warehouse and chiller facility
Appendix A
Sunrise over the ex-Bostock Riverslea Dazzle
TM
orchard
36Scales Corporation Limited – 2025 Full Year Results
GroupGlobal ProteinsHorticultureLogisticsCorporate and eliminations
$m2025
2024
(Restated)
202520242025
2024
(Restated)
2025202420252024
Underlying / Reported Revenue899.9584.6477.6266.8341.8248.9119.398.8(38.7)(29.8)
EBITDA Reconciliation
Underlying EBITDA (excluding NZ IFRS 16)124.479.473.555.253.726.86.45.7(9.2)(8.4)
NZ IFRS 16 Leases8.612.30.30.16.910.91.21.20.20.2
NZ IFRS 16 Leases - normalisation4.7 - - - 4.7 - - - - -
Underlying EBITDA (including NZ IFRS 16)137.691.773.955.465.237.77.66.9(9.1)(8.2)
Other adjustments:
(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -
Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -
Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -
Equity settled employee benefits(1.2)(0.7) - - - - - - (1.2)(0.7)
FX loss3.3 - - - 3.3 - - - - -
Fayman acquisition and equity accounting22.0(1.6)22.0(1.6) - - - - - -
Profruit acquisition and equity accounting(0.5)(0.8) - - (0.5)(0.8) - - - -
Equity accounting losses not recognised2.91.82.91.8 - - - - - -
Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -
Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -
Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)
Reported EBITDA169.987.998.853.075.337.77.66.9(11.8)(9.7)
EBIT Reconciliation
Underlying EBIT (excluding NZ IFRS 16)106.065.969.053.640.215.36.15.4(9.3)(8.4)
NZ IFRS 16 Leases(2.2)3.10.10.0(2.8)2.50.40.40.00.0
NZ IFRS 16 Leases - renewal reassessment4.7 - - - 4.7 - - - - -
Underlying EBIT (including NZ IFRS 16)108.468.969.153.642.117.86.55.9(9.2)(8.4)
Other adjustments:
(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -
Impairment of goodwill - - - - - - - - - -
Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -
Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -
Equity settled employee benefits(1.2)(0.7) - - - - - - (1.2)(0.7)
FX loss3.3 - - - 3.3 - - - - -
Fayman acquisition and equity accounting23.7(1.6)23.7(1.6) - - - - - -
Profruit acquisition and equity accounting(0.5)(0.4) - - (0.5)(0.4) - - - -
Equity accounting losses not recognised2.91.82.91.8 - - - - - -
Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -
Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -
Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)
Reported EBIT142.465.595.751.352.218.36.55.9(12.0)(9.9)
NZ IFRS Reconciliation
37Scales Corporation Limited – 2025 Full Year Results
GroupGlobal ProteinsHorticultureLogisticsCorporate and eliminations
$m2025
2024
(Restated)
202520242025
2024
(Restated)
2025202420252024
NPAT Reconciliation
Underlying NPAT (excluding NZ IFRS 16)79.253.954.646.727.811.04.43.9(7.6)(7.7)
NZ IFRS 16 Leases, net of tax(5.0)(0.5)(0.1)0.0(4.8)(0.4)(0.1)(0.2)(0.0)(0.0)
NZ IFRS 16 Leases - renewal reassessment, net of tax3.4 - - - 3.4 - - - - -
Underlying NPAT (including NZ IFRS 16)77.653.454.646.726.410.74.33.7(7.6)(7.7)
Other adjustments:
(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -
Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -
Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -
Equity settled employee benefits(1.1)(0.7) - - - - - - (1.1)(0.7)
FX loss3.3 - - - 3.3 - - - - -
Fayman acquisition and equity accounting31.5(1.1)31.5(1.1) - - - - - -
Profruit acquisition and equity accounting(0.4)(0.2) - - (0.4)(0.2) - - - -
Equity accounting losses not recognised2.91.82.91.8 - - - - - -
Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -
Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -
Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)
Tax deduction change for buildings - (2.1) - - - (2.1) - - - -
Tax effect of other NZ IFRS adjustments(1.9)1.1(1.0)(0.5)(0.9)1.6 - - - -
Reported NPAT117.749.688.144.335.710.94.33.7(10.3)(9.2)
NPAT Attributable to Shareholders Reconciliation
Underlying NPATAS (excluding NZ IFRS 16)63.534.638.927.427.811.04.43.9(7.6)(7.7)
NZ IFRS 16 Leases, net of tax(5.0)(0.5)(0.1)0.0(4.8)(0.4)(0.1)(0.2)(0.0)(0.0)
NZ IFRS 16 Leases - renewal reassessment, net of tax3.4 - - - 3.4 - - - - -
Underlying NPATAS (including NZ IFRS 16)61.834.138.827.426.410.74.33.7(7.6)(7.7)
Other adjustments:
(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -
Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -
Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -
Equity settled employee benefits(1.1)(0.7) - - - - - - (1.1)(0.7)
FX loss3.3 - - - 3.3 - - - - -
Fayman acquisition and equity accounting30.6(1.1)30.6(1.1) - - - - - -
Profruit acquisition and equity accounting(0.4)(0.2) - - (0.4)(0.2) - - - -
Equity accounting losses not recognised2.91.82.91.8 - - - - - -
Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -
Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -
Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)
Tax deduction change for buildings(2.1) - - - (2.1) - - - -
Tax effect of other NZ IFRS adjustments(1.9)1.1(1.0)(0.5)(0.9)1.6 - - - -
Reported NPAT Attributable to Shareholders101.030.371.425.035.710.94.33.7(10.3)(9.2)
NZ IFRS Reconciliation (cont.)
Appendix B
Production at Meateor Australia
39Scales Corporation Limited – 2025 Full Year Results
Disclaimer
The information in this presentation has been prepared by Scales Corporation Limited with due care and attention. However, neither Scales Corporation Limited nor any of its directors, employees,
shareholders nor any other person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any
information supplied in connection with it.
This presentation supplements our full year results announcement. It should be read subject to and in conjunction with the additional information in that release, and other material which we have
released to the NZX.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates and
assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplated in any projections and forward-looking statements in this
presentation will be realised. Actual results may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release to
you or to provide you with further information about Scales Corporation Limited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial measures used in this
presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance charges / (revenue), and taxation expense to net earnings / (loss) from continuing operations
•EBIT. We calculate EBIT by adding back (or deducting) finance charges / (revenue), and taxation expense to net earnings / (loss) from continuing operations
•Underlying EBITDA and EBIT are calculated by adding back (or deducting) certain non-cash NZ IFRS and other adjustments
•Underlying Net Profit is calculated by adding back (or deducting) the after-tax effect of certain non-cash NZ IFRS and other adjustments
A full reconciliation of Underlying to reported measures is provided in our Annual Report.
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position or returns, but that they should
not be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP financial measures may not be comparable to similarly titled amounts reported
by other companies.
Forward-looking statements are subject to any material adverse events, significant one-off expenses or other unforeseeable circumstances.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation constitutes legal,
financial, tax or other advice.
---
Scales Corporation Limited
consolidated financial statements
for the year ended 31 December 2025
Scales Corporation Limited
Contents
Directory3
Consolidated statement of comprehensive income4
Consolidated statement of changes in equity6
Consolidated statement of financial position7
Consolidated statement of cash flows8
Notes to the consolidated financial statements11
Independent auditor's report72
2
Scales Corporation Limited
Directory
Board of DirectorsAuditor
Mike Petersen (Chair)Deloitte Limited
Andrew Borland (Managing Director)Level 4
Tony Batterton151 Cambridge Terrace
Miranda BurdonChristchurch 8013
Nick Harris
Paul Munro (Appointed 14 October 2025)Bankers
Alan Isaac (Retired 14 October 2025)ANZ Bank New Zealand Limited
Level 3
Audit and Risk Management CommitteeANZ Centre
Paul Munro (Chair) (Appointed 14 October 2025)267 High Street
Tony BattertonChristchurch 8011
Nick Harris
Alan Isaac (Chair) (Retired 14 October 2025)Coöperatieve Rabobank U.A., New Zealand Branch
Level 4
Nominations and Remuneration Committee32 Hood Street
Tony Batterton (Chair)Hamilton 3204
Mike Petersen
Westpac New Zealand Limited
Finance and Treasury CommitteeLevel 4
Tony Batterton (Chair)The Terrace
Andrew Borland83 Cashel Street
Mike PetersenChristchurch 8011
Health & Safety and Sustainability CommitteeSolicitors
Miranda Burdon (Chair)Anthony Harper
Andrew BorlandLevel 9
Anthony Harper Tower
Registered Office62 Worcester Boulevard
52 Cashel StreetChristchurch 8013
Christchurch 8013
New ZealandChapman Tripp
Level 34
Postal AddressPwC Tower
PO Box 159015 Customs Street West
Christchurch 8140Auckland 1010
New Zealand
Corporate Advisor
TelephoneMaher & Associates
+64 3 379 772017 Albert Street
Auckland 1010
Website
www.scalescorporation.co.nzShare Registry
Computershare Investor Services Limited
Level 2
159 Hurstmere Road
Takapuna
Auckland 0622
3
Scales Corporation Limited
Consolidated statement of comprehensive income for the year ended 31 December 2025
20252024
$000's $000's
Note(Restated)*
RevenueB1899,949584,627
Cost of salesB2(700,212)(439,602)
199,737145,025
Administration and operating expensesB2(81,356)(64,234)
Impairment of property, plant and equipmentC13,118(2,949)
Share of profit of entities accounted for using the equity methodC38,2196,402
Other incomeB340,5967,810
Other lossesB3(452)(4,178)
EBITDA169,86287,876
AmortisationC7(1,072)(744)
DepreciationC1(15,611)(12,330)
Depreciation of right-of-use assetG2(10,799)(9,285)
EBIT142,38065,517
Finance revenue3,0363,465
Finance costB4(5,383)(4,819)
Finance cost of lease liabilityG2(4,740)(3,774)
PROFIT BEFORE INCOME TAX EXPENSE135,29360,389
Income tax expenseB5
(17,595) (10,741)
PROFIT FOR THE YEAR117,69849,648
Profit for the year is attributable to:
Equity holders of the Company100,98830,337
Non-controlling interests16,71019,311
117,69849,648
EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Basic earnings per share (cents)D570.721.3
Diluted earnings per share (cents)D570.221.3
The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.
* The restatements to comparative period are explained in Section H.
4
Scales Corporation Limited
Consolidated statement of comprehensive income for the year ended 31 December 2025 (continued)
20252024
$000's $000's
Note(Restated)*
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss:
Gain (loss) on cash flow hedges17,176
(41,941)
Income tax relating to cash flow hedges(4,855)
11,743
Share of other comprehensive income (loss) of joint venturesC32,661
(4,473)
Income tax relating to share of other comprehensive income of joint venturesC3(242)
452
Foreign exchange gain on translating foreign operations1,584
3,630
16,324(30,589)
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings(2,664)
(110)
Income tax relating to buildings782
(1,736)
Revaluation of apple trees(2,718)
14,915
Income tax relating to apple trees761
(4,176)
Deferred tax effect on sale of buildings186
821
Remeasurement of net defined benefit liability406
487
Income tax relating to remeasurement of net defined benefit liability(67)
(74)
(3,314)10,127
OTHER COMPREHENSIVE INCOME (LOSS) FOR THE YEAR13,010(20,462)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR130,70829,186
Total comprehensive income for the year attributable to:
Equity holders of the Company113,8369,680
Non-controlling interests16,87219,506
130,70829,186
The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.
* The restatements to comparative period are explained in Section H.
5
Scales Corporation Limited
Consolidated statement of changes in equity for the year ended 31 December 2025
Share
capital
ReservesRetained
earnings
Attributable
to owners of
the
Company
Non-
controlling
interests
Total
Note$000's $000's $000's $000's $000's $000's
Balance at 1 January 2024
103,445 99,435 170,472 373,35211,596
384,948
Correction of error adjustmentH
3,887(401)3,486
3,486
Balance at 1 January 2024 (Restated)*
103,445 103,322 170,071 376,83811,596
388,434
Profit for the year (Restated)*--30,33730,33719,31149,648
Other comprehensive loss for the year (Restated)*-(20,657)-(20,657)195(20,462)
Total comprehensive income for the year (Restated)*-(20,657)30,3379,68019,50629,186
Reclassification of revaluation reserveD2
- (16,182) 16,182--
-
Recognition of share-based paymentsD2-
710
-
710-
710
Shares soldD1
256--256-
256
Shares fully vestedD1, D2
2,070(578)(221)1,271-
1,271
DividendsD3
--(16,374) (16,374) (17,175)
(33,549)
Balance at 31 December 2024 (Restated)*105,77166,615199,995372,38113,927386,308
Profit for the year--100,988100,98816,710117,698
Other comprehensive income for the year-12,848-12,84816213,010
Total comprehensive income for the year-12,848100,988113,83616,872130,708
Reclassification of revaluation reserveD2
- (8,278)8,278--
-
Recognition of share-based paymentsD2
-1,169- 1,169-
1,169
Shares issuedD1
5,996-- 5,996-
5,996
Shares fully vestedD1, D2
1,663(679)(127)857-
857
Income tax relating to share-based paymentsD1, D2
-1,398- 1,398-
1,398
DividendsD3
--(29,079) (29,079) (14,846)
(43,925)
Movements of non-controlling interest
--(22,915) (22,915) (3,080)
(25,995)
Balance at 31 December 2025113,43073,073257,140443,64312,873456,516
The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.
* The restatements to comparative periods are explained in Section H.
6
Scales Corporation Limited
Consolidated statement of financial position as at 31 December 2025
202520242023
$000's$000's$000's
Note(Restated)*(Restated)*
EQUITY
Share capitalD1
113,430105,771103,445
ReservesD2
73,07366,615103,322
Retained earnings
257,140199,995170,071
Equity attributable to Scales Corporation Limited shareholders443,643372,381376,838
Equity attributable to non-controlling interestsF212,87313,927
11,596
TOTAL EQUITY456,516386,308388,434
CURRENT ASSETS
Cash and bank balances
64,67253,75377,638
Trade and other receivablesE1
71,55738,02534,029
Current tax assets
7015,3633,938
Other financial assetsE2
4,6862,2305,989
Unharvested agricultural produceC2
30,60226,64824,222
InventoriesC5
119,61824,96229,543
Prepayments
6,0153,8764,337
297,851154,857179,696
Assets held for sale
-19,100-
TOTAL CURRENT ASSETS297,851173,957179,696
NON-CURRENT ASSETS
Property, plant and equipmentC1
275,331245,344226,060
Investments accounted for using the equity methodC3
22,43957,21263,902
GoodwillC4
168,82040,63036,972
Defined benefit plan net asset
1,06359760
Other financial assetsE233,26337,188
29,077
SoftwareC7
1,2301,0551,160
Right-of-use assetG2
99,85659,59749,572
TOTAL NON-CURRENT ASSETS602,002441,623406,803
TOTAL ASSETS899,853615,580586,499
CURRENT LIABILITIES
Trade and other payablesE3
77,03529,85226,446
Dividend declaredD3
17,99710,3326,041
BorrowingsE4
63,759--
Purchase price payableF3
8,140--
Current tax liabilities
6,986397616
Other financial liabilitiesE56,81241,918
18,524
Lease liabilityG2
15,97113,46410,963
TOTAL CURRENT LIABILITIES196,70095,96362,590
NON-CURRENT LIABILITIES
BorrowingsE4
84,98241,25965,647
Purchase price payableF3
28,574--
Deferred tax liabilitiesB5
20,97020,44118,459
Other financial liabilitiesE514,44918,688
6,699
Lease liabilityG2
97,66252,92144,670
TOTAL NON-CURRENT LIABILITIES246,637133,309135,475
TOTAL LIABILITIES443,337229,272198,065
NET ASSETS456,516386,308388,434
The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.
* The restatements to comparative periods are explained in Section H.
7
Scales Corporation Limited
Consolidated statement of cash flows for the year ended 31 December 2025
20252024
Note$000's$000's
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers886,728590,424
Government grants received-25
Dividends and distributions received2,7331,546
Interest received2,6023,000
892,063594,995
Cash was disbursed to:
Payments to suppliers and employees(776,062)(481,705)
Interest paid(10,123)(8,593)
Income tax paid(10,113)(7,140)
(796,298)(497,438)
NET CASH PROVIDED BY OPERATING ACTIVITIES95,76597,557
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Advances repaid544261
Sale of property, plant and equipment and software24,18334,000
24,72734,261
Cash was applied to:
Purchase of property, plant and equipmentC1(20,903)(54,433)
Purchase of softwareC7(1,247)(507)
Purchase of financial instruments(150)-
Acquisition of non-controlling interestF2(41,434)-
Acquisition of subsidiary, net of cash acquiredF3(38,120)(11,080)
Advances to joint ventures(4,201)(17,338)
(106,055)(83,358)
NET CASH USED IN INVESTING ACTIVITIES(81,328)(49,097)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Treasury stock sold-256
Drawdowns of seasonal facility borrowingsE434,00025,500
Net drawdowns of trade finance facility borrowingsE413,548-
Drawdowns of term facility borrowingsE440,73256,000
88,28081,756
Cash was applied to:
Dividends paid
D3
(21,414)(12,083)
Dividends paid to non-controlling interests
F2
(14,846)(17,175)
Repayment of related party loanF3(13,234)-
Repayments of lease liabilities
G2
(8,464)(9,075)
Repayments of seasonal facility borrowingsE4(34,000)(28,937)
Repayments of term facility borrowingsE4(715)(87,087)
(92,673)(154,357)
NET CASH USED IN FINANCING ACTIVITIES(4,393)(72,601)
The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.
8
Scales Corporation Limited
Consolidated statement of cash flows for the year ended 31 December 2025 (continued)
20252024
$000's$000's
NET INCREASE (DECREASE) IN CASH10,044(24,141)
Net foreign exchange difference875256
Cash and cash equivalents at the beginning of the year53,75377,638
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR64,67253,753
Represented by:
Cash and bank balances
64,672
53,753
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR64,67253,753
NET CASH GENERATED BY OPERATING ACTIVITIES
Reconciliation of profit for the year to net cash generated by operating activities:
Profit for the year117,69849,648
Non-cash items:
Depreciation (including on right-of-use asset)26,41021,615
Gain on lease modification(59)(79)
Gain on rights transferred(187)(3,113)
Impairment on revaluation (impairment reversal)(3,118)2,949
Amortisation1,072744
Share of equity accounted results(8,219)(6,402)
Gain on fair value of equity instrument(40,262)(3,367)
Hedging instruments(4,335)4,790
Loss (gain) on disposal of property, plant and equipment174(1,225)
Share-based payments1,169710
Change in value of call and put options-2,515
Deferred tax(3,413)6,304
Interest capitalised into loans(434)(465)
Fair value loss on interest-free related party loans, net of interest income2781,663
Foreign exchange on related party loans(575)(682)
Operating cash receipts not included in profit for the year:
Dividends received from equity accounted entities2,6451,545
Changes in net assets and liabilities:
Trade and other receivables(8,898)1,009
Unharvested agricultural produce(3,954)(2,426)
Inventories6,90124,175
Prepayments(94)884
Trade and other payables2,071(532)
Current tax assets and liabilities10,895(2,703)
NET CASH PROVIDED BY OPERATING ACTIVITIES95,76597,557
The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.
9
Scales Corporation Limited
Consolidated statement of cash flows for the year ended 31 December 2025 (continued)
Statement of cash flows
For the purpose of the statement of cash flows, cash and cash equivalents include cash and bank balances.
The following terms are used in the statement of cash flows:
Operating activitiesare the principal revenue producing activities of the Group and other activities that are not
investing or financing activities.
Investing activitiesare the acquisition and disposal of long-term assets and other investments not included in cash
equivalents.
Financing activitiesare 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 24 February 2026.
Mike Petersen, ChairAndy Borland, Managing Director
The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.
10
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
ABOUT THIS REPORT
Notes to the financial statements
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.
Reporting entity
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 manufacture and
trade food ingredients, grow apples, operate processing facilities, export products, provide logistics services, and provide
insurance services to companies within the Group.
Basis of preparation
The financial statements have been prepared:
• in accordance with Generally Accepted Accounting Practice (GAAP), IFRS Accounting Standards (IFRS),
the New Zealand equivalents to IFRS Accounting 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.
11
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
ABOUT THIS REPORT (CONTINUED)
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;
• Fair value of assets acquired in the Australian entities in note F3.
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.
12
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
ABOUT THIS REPORT (CONTINUED)
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.
NZ IFRS 18Presentation and Disclosure in Financial Statements has been issued and is effective for the financial reporting
periods starting on 1 January 2027, with an early adoption permitted.
NZ IFRS 18 replaces NZ IAS 1Presentation of Financial Statements, carrying forward many of the requirements in NZ IAS 1
unchanged and complementing them with new requirements. In addition, some NZ IAS 1 paragraphs have been moved to
NZ IAS 8Accounting Policies, Changes in Accounting Estimates and Errorsand NZ IFRS 7Financial Instruments: Disclosures.
Furthermore, there were minor amendments to NZ IAS 7Statement of Cash Flowsand NZ IAS 33Earnings Per Share.
NZ IFRS 18 introduces new requirements to:
- present specified categories and defined subtotals in the statement of profit or loss
- provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements; and
- improve aggregation and disaggregation.
The amendments to NZ IAS 7 and NZ IAS 33, as well as the revised NZ IAS 8 and NZ IFRS 7, become effective when an entity applies
NZ IFRS 18. NZ IFRS 18 requires retrospective application with specific transition provisions.
As a presentation and disclosure standard, NZ IFRS 18 is expected to change the manner in which information is presented in Group
financial statements, with the recognition and measurement of items in the financial statements not impacted.
The Group has reviewed all other 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.
13
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
A. SEGMENT INFORMATION
This section explains the financial performance of the operating segments of Scales, providing additional information
about individual segments.
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.
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 , Esro Petfood B.V. and Shelby SPS LLC.
• Horticulture: orchards, fruit packing, juice concentrate processing and marketing.
Mr Apple New Zealand Limited, New Zealand Apple Limited, Longview Group Holdings Limited, Profruit (2006) Limited, and
Fern Ridge Produce 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.
14
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
A. SEGMENT INFORMATION (CONTINUED)
Global
Proteins
Horti-
cultureLogisticsOther
Elimina-
tionsTotal
$000's $000's $000's $000's $000's $000's
2025
Total segment revenue477,587341,831119,2782,878(41,625)899,949
Inter-segment revenue--(37,986)(3,639)41,625-
Revenue from external customers477,587341,83181,292(761)-899,949
Loss on sale of non-current assets(32)(155)13--(174)
Insurance proceeds------
Share of profit of entities accounted for8,219----8,219
using the equity method
Impairment of property, plant and equipment(83)3,201---3,118
Goodwill impairment------
Gain on fair value of equity investment40,262----40,262
Gain on lease modification-59---59
EBITDA98,83175,2757,597(11,841)-169,862
Amortisation expense-(1,001)(58)(13)-(1,072)
Depreciation expense(2,839)(12,484)(262)(26)-(15,611)
Depreciation of right-of-use asset(266)(9,621)(791)(121)-(10,799)
EBIT95,72652,1696,486(12,001)-142,380
Finance revenue468108432,417-3,036
Finance costs(1,298)(15)21(4,091)-(5,383)
Finance cost of lease liability(151)(3,933)(597)(59)-(4,740)
Income tax expense(6,667)(12,666)(1,689)3,427-(17,595)
Segment profit (loss) after income tax88,07835,6634,264(10,307)-117,698
Segment assets347,390465,64419,87066,949-899,853
Segment liabilities175,817159,74517,62590,150-443,337
Segment carrying value of investment22,439----22,439
accounted for using the equity method
Segment acquisition of property, plant and6,66615,24521326-22,150
equipment and software
Segment acquisition of right-of-use assets10,65439,5111,27632-51,473
15
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
A. SEGMENT INFORMATION (CONTINUED)
Global
Proteins
Horti-
cultureLogisticsOther
Elimina-
tionsTotal
$000's $000's $000's $000's $000's $000's
2024 (Restated)*
Total segment revenue266,791248,87598,7973,789(33,625)584,627
Inter-segment revenue--(30,223)(3,402)33,625-
Revenue from external customers266,791248,87568,574387-584,627
Gain on sale of non-current assets-1,225---1,225
Insurance proceeds------
Share of profit of entities accounted for6,039363---6,402
using the equity method
Impairment of property, plant and equipment-(2,949)---(2,949)
Goodwill impairment------
Gain on fair value of equity investment-3,367--
Gain on lease modification24478--79
EBITDA52,98737,7156,884(9,710)-87,876
Amortisation expense-(696)(34)(14)-(744)
Depreciation expense(1,652)(10,392)(259)(27)-(12,330)
Depreciation of right-of-use asset(69)(8,366)(731)(119)-(9,285)
EBIT51,26618,2615,860(9,870)-65,517
Finance revenue661224612,519-3,465
Finance costs(18)45(76)(4,770)-(4,819)
Finance cost of lease liability(17)(3,052)(640)(65)-(3,774)
Income tax expense(7,619)(4,627)(1,480)2,985-(10,741)
Segment profit (loss) after income tax44,27310,8513,725(9,201)-49,648
Segment assets166,557371,82924,11453,080-615,580
Segment liabilities37,559131,15115,61244,950-229,272
Segment carrying value of investment57,212----57,212
accounted for using the equity method
Segment acquisition of property, plant and5,67248,31193819-54,940
equipment and software
Segment acquisition of right of use assets28316,1643,63837-20,122
* The restatements to comparative period are explained in Section H.
16
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
A. SEGMENT INFORMATION (CONTINUED)
Non-current assets other than financial instruments by geographical location
New ZealandAustraliaUSATotal
20252024202520242025202420252024
(Restated)*(Restated)*
$000's $000's $000's $000's $000's $000's $000's $000's
Property, plant and equipment228,644226,64925,1892121,49818,674275,331245,344
Investments accounted for22,41220,078(0)37,13427-22,43957,212
using the equity method
Goodwill89,5097,67647,206-32,10532,954168,82040,630
Software1,2281,0552---1,2301,055
Right-of-use asset89,21459,38210,504-13821599,85659,597
* The restatements to comparative period are explained in Section H.
17
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
B. FINANCIAL PERFORMANCE
This section explains the financial performance of Scales, providing additional information about individual items in the
statement of comprehensive income.
B1. REVENUE
20252024
$000's $000's
By nature:
Revenue from the sale of goods
793,370 496,741
Revenue from the rendering of services
112,745 90,319
Fees and commission
71024
Net foreign exchange (loss) gain
(11,678) (7,228)
Rental revenue
4,802 4,771
899,949 584,627
By market:
New Zealand
123,377 79,729
Asia
364,653 178,786
Europe
30,226 36,144
North America
361,727 284,731
Other
19,966 5,237
899,949 584,627
By segment and type:
Horticulture - sale of agricultural produce317,618233,827
Horticulture - agricultural produce related services19,00310,277
Horticulture - other5,2104,771
Global Proteins - sale of pet food ingredients and edible proteins465,652255,805
Global Proteins - other11,93510,986
Logistics services81,29268,574
Other(761)387
899,949 584,627
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. Rental
revenue is recognised on a straight-line basis over the period of occupation.
Sale of agricultural produce and fruit juice
The Group sells apples to more than 160 customers in 40 countries and fruit juice to more than 60 customers in 4 countries.
Apple sales-related quality claim provisions are recorded in accordance with NZ IAS 37Provisions, 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.
18
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
B1. REVENUE (CONTINUED)
Sale of agricultural produce and fruit juice (continued)
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 and edible proteins
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.
19
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
B2. COST OF SALES, ADMINISTRATION AND OPERATING EXPENSES
20252024
$000's $000's
Auditor's remuneration
Deloitte Limited (New Zealand):
Audit and review of the financial statements:
Audit of the annual financial statements
454359
Other services:
Audit or review related services:
Audit of the charging group financial statements
-20
Audit of solvency certificate for Selacs Insurance Limited
109
Other assurance services and other AUP engagements
Greenhouse gas emission assurance engagement
4545
Other services:
Greenhouse gas assurance engagement readiness
-45
Non-assurance services:
Taxation compliance
10-
Sheehan & Company CPA, PC (United States):
Audit and review of the financial statements:
Group reporting audit
155144
Review of subsidiary financial statements
4540
Lowe Lippmann (Australia):
Audit and review of the financial statements:
Group reporting audit
-33
Prior year accrual timing differences:
(5)-
Bad debts recovered
(587)(681)
Change in fair value adjustment to unharvested agricultural produce
(4,579) 1,139
Change in inventories
15,918 23,582
Direct expenses
128,234 97,471
Directors' fees
678704
Donations
1212
Electricity
4,413 3,667
Employee benefits expense:
Post employment benefits - defined contribution plans
1,569 1,220
Post employment benefits - defined benefit plans
715555
Salaries, wages and related benefits
113,675 94,423
Other employee benefits
2,054710
Grower payments
46,608 34,738
Insurance
5,843 5,233
Management fees
4848
Materials and consumables
329,583 127,780
Ocean and air freight
103,102 90,304
Operating lease expenses
1,822 1,287
Packaging
20,291 14,382
Provision (reversal of) for write-down of inventories
70786
Repairs and maintenance
11,385 5,781
781,568 503,836
20
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
B2. COST OF SALES, ADMINISTRATION AND OPERATING EXPENSES (CONTINUED)
20252024
$000's $000's
Disclosed as:
Cost of sales700,212439,602
Administration and operating expenses81,35664,234
781,568 503,836
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.
B3. OTHER INCOME AND LOSSESNote
Dividends
881
Fair value loss on interest-free related party loans
(278)(1,663)
(Loss) gain on disposal of property, plant and equipment
(174)1,225
Gain on rights transferred
187 3,113
Gain (loss) on joint ventures call options
-(174)
Gain on lease modification
5979
Gain on fair value equity investmentF3
40,262 3,367
Government grants - Cyclone Gabrielle
-25
Remeasurement of gross liability on put options to non-controlling interest
- (2,341)
40,144 3,632
Disclosed as:
Other income40,5967,810
Other losses(452)(4,178)
40,144 3,632
B4. FINANCE COST
Interest on loans
4,657 4,654
Other interest
416(5)
Bank facility fees
310170
5,383 4,819
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.
21
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
B5. TAXATION
20252024
$000's $000's
(Restated)*
Income tax recognised in profit or loss:
Current tax expense
22,525 5,923
Adjustments recognised in the current year in relation to the current tax of prior years(1,517)
(1,486)
Deferred tax expense relating to the origination and reversal of temporary differences(3,413)6,304
Total income tax expense recognised in profit or loss
17,595 10,741
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 tax135,29360,389
Income tax expense calculated at applicable corporate tax rates36,77415,948
Non-assessable income(21,045)(8,890)
Non-deductible expenses3,2712,099
Deferred tax on buildings adjustment-2,065
Over provision of income tax in previous year - current tax(1,517)(1,486)
Under provision of income tax in previous year - deferred tax1121,005
17,595 10,741
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 23.38% (2024: 25.60%) payable by US
entities under US tax law, being federal tax 21% and weighted average state tax 2.38% (2024: 4.60%). 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 67.5% of its income tax.
Opening
balance
Credited
to profit or
loss
Acquisition
of subsidiary
Charged to
equity
Charged to
other
comprehen-
sive income
Foreign
exchange
movements
Closing
Balance
$000's $000's $000's $000's $000's $000's $000's
Deferred tax liability
Taxable and deductible temporary differences arise from the following:
31 December 2025
Deferred tax liabilities (assets):
Trade and other receivables(92)
552 (1,869)
---(1,409)
Unharvested agricultural produce7,4611,107
-
---8,568
Property, plant and equipment and software25,523
850 3,701
-(1,729)(122)28,223
Trade and other payables(734)
(2,240) (1,653)
---(4,627)
Lease liability and right-of-use asset(1,934)(1,956)
-
---(3,890)
Equity-settled employee benefits
---
(1,398)--(1,398)
Other financial assets and liabilities(9,783)
(1,726) 1,848
-5,164-(4,497)
Net deferred tax liability20,441(3,413)2,027(1,398)3,435(122)20,970
22
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
B5. TAXATION (CONTINUED)
Opening
balance
Charged
to profit or
loss
Acquisition of
subsidiary
Charged to
other
comprehen-
sive income
Foreign
exchange
movements
Closing
Balance
$000's $000's $000's $000's $000's $000's
31 December 2024 (Restated)*
Deferred tax liabilities (assets):
Trade and other receivables(47)(45)---(92)
Unharvested agricultural produce6,782679---7,461
Property, plant and equipment and software13,7903,9962,2565,09139025,523
Trade and other payables(1,097)363---(734)
Lease liability and right-of-use asset(1,718)(216)---(1,934)
Other financial assets and liabilities7491,52762(12,121)-(9,783)
Net deferred tax liability18,4596,3042,318(7,030)39020,441
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, and when the tax relates to
items charged to equity reserves, in which case the tax is also recognised in the respective equity reserves.
23
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
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.
24
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C. KEY ASSETS
This section shows the key assets Scales uses to generate operating revenues.
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 2024 (Restated)*
147,339 37,16287,308 14,04214,397
300,248
Acquisition through business combination
3,920-7,019108435
11,482
Additions
22,562 16,54315,153 2,709 (2,534)
54,433
Disposals
(24,228) (3,048)(5,416)(358)-
(33,050)
Transfer to held for sale
(19,100)----
(19,100)
Revaluation through other comprehensive income
(2,072) 12,512---
10,440
Effect of foreign currency translation
384-1,4854562
2,435
Balance at 31 December 2024 (Restated)*128,80563,169105,54916,50512,860326,888
Acquisition through business combination
--26,945306922
28,173
Additions
2,085 3,4149,948 1,993 3,463
20,903
Disposals
(2,052)3(1,731) (2,117)-
(5,897)
Revaluation through other comprehensive income
(4,533) (6,355)---
(10,888)
Effect of foreign currency translation
(88)-4811(78)
(107)
Balance at 31 December 2025124,21760,231140,75916,69817,167359,072
Accumulated depreciation, and impairment
Balance at 1 January 2024 (Restated)*
2,266 6,88054,299 10,743
-74,188
Depreciation expense
2,033 2,4026,388 1,507
-12,330
Disposals
--(3,851)(262)
-(4,113)
Revaluation through other comprehensive income
(1,962) (2,403)--
-(4,365)
Revaluation (gain) loss through profit or loss
1,253 1,455241-
-2,949
Effect of foreign currency translation
--5523
-555
Balance at 31 December 2024 (Restated)*3,5908,33457,62911,991-81,544
Depreciation expense
1,977 3,6378,321 1,676
-15,611
Disposals
(979)-(1,692) (2,007)
-(4,678)
Revaluation through other comprehensive income
(1,869) (3,637)--
-(5,506)
Revaluation (gain) loss through profit or loss
(2,006) (1,244)132-
-(3,118)
Effect of foreign currency translation
--(115)3
-(112)
Balance at 31 December 20257137,09064,27511,663-83,741
Net book value
As at 31 December 2024125,21554,83547,9204,51412,860245,344
As at 31 December 2025123,50453,14176,4845,03517,167275,331
25
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
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.
Plant and equipment, and office equipment and motor vehicles 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:
Buildings10 to 50 years
Apple trees30 years
Plant and equipment2 to 25 years
Office equipment and motor vehicles2 to 20 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 measured at fair value
Land and buildings shown at valuation were valued at fair value as at 31 December 2025 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. Recognised Seasonal Employer ("RSE") buildings were arrived at discounted cash
flows analysis of forecast income streams and costs.
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. The 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.
26
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Land and buildings measured at fair value (continued)
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 $14 - $283 per square metre (2024: $12 - $249) and the capitalisation
rates of 7.5% - 8.5% (2024: 6.35% - 8.25%).
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 $32,100 - $168,700 per hectare (2024: $34,100 - $157,500).
The Group’s land and buildings are classified as Level 3 in the fair value hierarchy.
The carrying amount of land and buildings if it had been recognised under the cost model is $60,827,000 (2024: $71,169,000).
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 2025.
The market valuations completed by Boyd Gross were based on a combination of discounted cash flow analysis of forecast
income streams and costs from each orchard, and sales comparison approaches. For owned orchards, the fair value of orchard
land and buildings, determined using a sales comparison approach, is deducted from the overall orchard valuation to arrive at
the valuation of the apple trees.
The significant unobservable inputs, based on district averages, for the apple trees are:
20252024
Production levels (gross tray carton equivalent (TCE)) per hectare2,000 - 6,5002,750 - 5,563
Orchard gate returns per TCE$27.00 - $66.00$25.00 - $75.00
Orchard costs per TCE$28.00 to $37.00$20.30 to $34.27
Discount rate16.05% - 17.35%15.88% - 17.88%
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 $21,952,000 (2024: $21,217,000).
27
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
The apple trees, on owned and leased orchards, have the following planting profile:
Total hectares planted
20252024
Premium varieties:
Dazzle
266260
NZ Queen
158159
Pink Lady
88100
Red sports (Fuji and Royal Gala)
349349
Other premium
10779
Traditional varieties:
Braeburn
1527
Royal Gala
99112
Other traditional
94105
1,176 1,191
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
20252024
$000's $000's
Balance at beginning of the year
26,648 24,222
Decrease due to harvest
(26,648) (24,222)
Development expenditure
27,921 28,546
Fair value adjustment
2,681 (1,898)
Balance at end of the year
30,602 26,648
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.
28
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C2. UNHARVESTED AGRICULTURAL PRODUCE (CONTINUED)
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:
20252024
Production levels (tonnes per hectare per annum)63 - 9859 - 98
Orchard gate returns per TCE$29 to $79$29 to $76
Risk adjusting discount rates46% 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.
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 activityCountry of
Holding
Balance date
incorporation
20252024
ANZ Exports Pty LtdTrading companyAustralia85%42.50% 31 December *
Esro Petfood B.VTrading companyThe Netherlands50%50% 31 December
FI Group Holding Pty LtdTrading companyAustralia100%50% 31 December *
Meateor Australia Pty LtdTrading companyAustralia100%50% 31 December *
Meateor Pet Foods Limited PartnershipTrading companyNew Zealand50%50% 31 December
Shelby SPS LLCTrading companyUnited States33.33%0% 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 had a balance date of 30 June which aligned with the income tax year in Australia.
These entities have transitioned to a 31 December balance date, with a six month transitional period ending 31 December 2025.
In September 2025, Scales acquired the remaining 50% shareholding in FI Group Holding Pty Limited and Meateor Australia Pty Limited,
as well as 42.5% of ANZ Exports. Below is the summarised financial information for these entries in respect of Scales equity accounting
share for the first 9 months up until acquisition. Refer to note F3 for the acquisition accounting of FI Group Holding, Meateor Australia
and ANZ Exports.
In December 2025, Shelby SPS LLC was formed and Scales holds a 33.33% shareholding.
29
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
Summarised financial information for Meateor Pet Foods Limited Partnership
20252024
$000's $000's
Current assets
21,700 20,443
Non-current assets
34,367 33,305
Current liabilities
(8,302) (10,242)
Non-current liabilities
(2,941) (3,351)
Net assets
44,824 40,155
Group's share in the net assets of equity accounted entities
22,412 20,078
Carrying amount of investment in equity accounted entities
22,412 20,078
The above amounts of assets and liabilities include the following:
Cash and cash equivalents
371549
Current financial liabilities (excluding trade and other payables and provisions)
(2,778) (3,500)
Non-current financial liabilities (excluding trade and other payables and provisions)
(1)-
Capital commitments
--
Revenue
63,413 60,863
Profit for the year after tax
4,904 2,117
Other comprehensive income attributable to the owners of the company
1,728 (3,229)
Total comprehensive income
6,632 (1,112)
The above profit for the year includes the following:
Depreciation and amortisation
1,940 1,643
Interest income
3-
Interest expense
481937
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 taxation
2,453 1,059
Share of income tax
(1)-
Share of other comprehensive income (net of tax)
866 (1,615)
Share of net profit for the year and total comprehensive income3,318(556)
Carrying value at beginning of the year
20,078 21,634
Deferred tax on business combinations made by equity accounted entities
16-
Dividends and distributions paid by equity accounted entities
(1,000) (1,000)
Investment in equity accounted entities22,41220,078
30
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
20252024
$000's $000's
Underlying financial performance of Meateor Pet Foods Limited Partnership:*
Underlying EBITDA/EBITDA**7,322
4,697
Depreciation and amortisation(1,940)
(1,643)
Underlying finance revenue/finance revenue3
-
Underlying finance costs/finance cost(481)
(937)
Income tax expense-
-
Underlying NPAT/NPAT4,9042,117
Share of Meateor Pet Foods Limited Partnership Underlying NPAT included in Group Underlying EBITDA2,4521,059
* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit
measures. 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. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.
** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and
Amortisation
Underlying EBITDA and Underlying NPAT are equal to EBITDA and NPAT for both 2025 and 2024.
Summarised financial information for the ANZ Exports Pty Ltd and FI Group Holding Pty Ltd
- Pre acquisition period ending 30 September 2025
Current assets
- 64,307
Non-current assets
-2,144
Current liabilities
- (44,495)
Non-current liabilities
- (1,925)
Net assets
- 20,031
Group's share in the net assets of equity accounted entities
-9,971
Goodwill
- 25,967
Effect of foreign exchange translation
-1,139
Carrying amount of investment in equity accounted entities
- 37,077
The above amounts of assets and liabilities include the following:
Cash and cash equivalents
-976
Current financial liabilities (excluding trade and other payables and provisions)
- (27,780)
Non-current financial liabilities (excluding trade and other payables and provisions)
- (4,738)
31
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
20252024
$000's $000's
Revenue
381,379 482,730
Profit for the year after tax
8,387 10,605
Other comprehensive income attributable to the owners of the company
4,682 (2,672)
Total comprehensive income
13,069 7,933
The above profit for the year includes the following:
Depreciation and amortisation
9556
Interest income
2347
Interest expense
1,310 1,910
Income tax expense
4,440 6,029
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
6,897 8,269
Share of income tax
(2,069) (3,001)
Share of other comprehensive income (net of tax)
997 (1,571)
Share of net profit for the year and total comprehensive income5,8253,697
Carrying value at beginning of the year37,077
32,786
Dividends and distributions paid by equity accounted entities
(1,645)(545)
Effect of foreign exchange translation
502 1,139
Investment acquired
(41,759)-
Investment in equity accounted entities-37,077
Underlying financial performance of ANZ Exports Pty Ltd and FI Group Holding Pty Ltd :*
Underlying EBITDA/EBITDA**13,997
18,594
Depreciation and amortisation(95)
(56)
Underlying finance revenue/finance revenue234
7
Underlying finance costs/finance cost(1,310)
(1,910)
Income tax expense(4,440)
(6,029)
Underlying NPAT/NPAT8,38710,605
Share of ANZ Exports Pty Ltd and FI Group Holding Pty Ltd Underlying NPAT4,8285,270
included in Group Underlying EBITDA
* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit
measures. 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. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.
** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and
Amortisation
Underlying EBITDA and Underlying NPAT are equal to EBITDA and NPAT for both 2025 and 2024.
32
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
Summarised financial information for the Meateor Australia Pty Ltd - Pre acquisition period ending 30 September 2025
20252024
$000's $000's
Current assets
- 20,617
Non-current assets
- 32,898
Current liabilities
- (17,164)
Non-current liabilities
- (34,862)
Net assets
-1,489
Group's share in the net assets of equity accounted entities
-745
Unrecognised bargain purchase gain
-(708)
Effect of foreign exchange translation
-18
Carrying amount of investment in equity accounted entities
-55
The above amounts of assets and liabilities include the following:
Cash and cash equivalents
-5,524
Current financial liabilities (excluding trade and other payables and provisions)
- (11,060)
Non-current financial liabilities (excluding trade and other payables and provisions)
- (34,862)
Revenue
47,259 42,026
Profit for the year after tax
1,823(620)
Other comprehensive income attributable to the owners of the company
(1,606) (2,764)
Total comprehensive income
217(3,384)
The above profit for the year includes the following:
Depreciation and amortisation
2,732 2,852
Interest income
29 3,300
Interest expense
2,187 4,530
Income tax expense
1,763 (1,472)
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
1,793(395)
Share of income tax
(881)105
Share of other comprehensive income (net of tax)
798 (1,287)
Share of net profit for the year and total comprehensive income1,710(1,577)
Carrying value at beginning of the year55
1,614
Dividends and distributions paid by equity accounted entities
--
Effect of foreign exchange translation
6618
Investment acquired
(1,831)-
Investment in equity accounted entities-55
33
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
20252024
$000's $000's
Underlying financial performance of Meateor Australia Pty Ltd:*
Underlying EBITDA/EBITDA**8,476
1,990
Depreciation and amortisation(2,732)
(2,852)
Finance revenue29
3,300
Adjustment-
(3,300)
Underlying finance revenue****29(0)
Finance cost(2,187)
(4,530)
Adjustment862
2,841
Underlying finance cost****(1,325)(1,689)
Income tax expense(1,763)
1,472
Underlying NPAT***2,686(1,079)
Adjustment(862)459
NPAT1,823(620)
Share of Meateor Australia Pty Ltd Underlying NPAT included in Group Underlying EBITDA1,344(346)
* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit
measures. 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. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.
** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and
Amortisation
***Underlying NPAT excludes an adjustment of $862k expense for 2025 (Scales share $431k) and $459k for 2024 (Scales share $57k).
The adjustments relate to excluding the non-cash entries in relation to the interest-free related party loan, comprising the gain
on initial recognition of the loan and the unwind of the discount. The non cash entries are included for NZ IFRS financial
purposes but are excluded from Underlying NPAT.
****Underlying finance costs and underlying finance revenue are non-GAAP measures that are defined by management as the
finance costs and finance revenue exclusive of the unwinding discount on the related party loan, the Fayman acquisition
settlement adjustments.
Summarised financial information for Esro Petfood B.V.
Current assets
10,611 9,620
Non-current assets
20,715 13,507
Current liabilities
(11,294) (7,019)
Non-current liabilities
(33,945) (22,370)
Net assets
(13,913)(6,262)
Group's share in the net assets of equity accounted entities
(6,957) (3,131)
Effect of foreign exchange translation
--
Carrying amount of investment in equity accounted entities
--
34
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
20252024
$000's $000's
The above amounts of assets and liabilities include the following:
Cash and cash equivalents
28 2,853
Current financial liabilities (excluding trade and other payables and provisions)
(814)(708)
Non-current financial liabilities (excluding trade and other payables and provisions)
(33,966) (20,095)
Revenue
31,022 14,980
Loss for the year after tax
(5,849) (3,511)
Other comprehensive income attributable to the owners of the company
--
Total comprehensive income (loss)
(5,849) (3,511)
The above loss for the year includes the following:
Depreciation and amortisation
(2,864) 1,384
Interest expense
(2,043) 1,383
Income tax expense
1,209 1,170
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
--
Effect of foreign exchange translation
--
Investment in equity accounted entities--
Underlying financial performance of Esro Petfood B.V.:*
Underlying EBITDA/EBITDA**(2,151)
(1,914)
Depreciation and amortisation(2,864)
(1,384)
Underlying finance revenue/finance revenue-
-
Underlying finance costs/finance cost(2,043)
(1,383)
Income tax expense1,209
1,170
Underlying NPAT/NPAT(5,849)(3,511)
Share of Esro Petfood B.V. Underlying NPAT included in Group Underlying EBITDA(2,925)(1,755)
* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit
measures. 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. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.
35
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)
** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and
Amortisation
Esro Petfood B.V. generated an underlying loss of $5.9m (Scales share of $2.9m) for the year end 31 December 2025. The Group
does not provide a guarantee which results in the loss being capped at zero.
For NZ IFRS financial reporting purposes no profit has been recognised in Scales Group result from inception.
Shelby SPS LLC
The Group recognised $27k share of profit before taxation for Shelby SPS LLC during the year.
36
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C4. GOODWILL
20252024
Note$000's $000's
Gross carrying amount
Balance at beginning of the year40,63036,972
Goodwill recognised on business acquisitionF3129,03619
Effect of foreign currency exchange differences(846)3,639
Balance at end of the year
168,82040,630
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.
Global Proteins - ANZ Exports4,381-
Global Proteins - FI Group Holding98,669
Global Proteins - Meateor Australia25,986-
Global Proteins - Shelby32,10832,954
Horticulture - Fern Ridge5,7025,702
Horticulture - Profruit1919
Logistics1,9551,955
168,82040,630
As at 31 December 2025, the Directors have determined, based on discounted cash flow and value in use calculations, that
there is no impairment of goodwill associated with the above CGUs.
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 models were based on the following key assumptions:
20252024
Pre-tax discount rates ANZ Exports CGU28%N/A
Pre-tax discount rates Other CGU8-17%9-16%
Annual growth rates2-3%2%
37
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
C5. INVENTORIES
20252024
$000's $000's
Finished goods
112,761 19,897
Other
6,857 5,065
119,61824,962
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 $0.07m (2024: $0.5m) has been recorded relating to aged inventory within the Global Proteins division. The
provision relates to inventory that has reached or is 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.
38
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
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
life of 3 years is used in the calculation of amortisation.
20252024
$000's $000's
Gross carrying amount
Opening balance9,197
8,558
Acquisition through business combination-
132
Additions1,247
507
Closing balance
10,444 9,197
Accumulated amortisation
Opening balance(8,142)
(7,398)
Amortisation expense(1,072)
(744)
Closing balance
(9,214) (8,142)
Net book value1,2301,055
39
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
D. CAPITAL FUNDING
This section explains how Scales manages its capital structure and how dividends are returned to shareholders.
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 145,018,818 fully paid ordinary shares (2024: 143,571,527 shares) less treasury stock of
1,298,926 shares (2024: 1,144,690 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
20252024
Fully paid ordinary shares:
Opening balance143,571,527 143,095,981
Share Scheme - shares issued461,699475,546
Fayman acquisition - shares issued985,592
Closing balance145,018,818 143,571,527
Treasury stock:
Opening balance1,144,690 1,160,229
Share Scheme - shares issued461,699 475,546
Share Scheme - shares forfeited and sold- (68,931)
Share Scheme - shares fully vested(307,463) (422,154)
Closing balance1,298,926 1,144,690
The available subscribed capital of $59,807,309 (2024: $51,835,684) 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.
20252024
Movement in share capital related to share-based payments:$000's $000's
Equity-settled employee benefit share scheme vested
Interest-free loan became full recourse8571,271
Accumulated share option value reclassified from reserve into share capital679578
Accumulated dividends reclassified from retained earnings into share capital127221
1,663 2,070
40
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
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 2024 (Restated)*
94,244 5,400 2,0941,03946976
103,322
Other comprehensive income (loss)9,714(30,198)(4,021)-3,630
218
(20,657)
Transfer to retained earnings
(16,182)-----
(16,182)
Recognition of share-based payments
---710--
710
Shares fully vested
---(578)--
(578)
Balance at 31 December 2024 (Restated)*87,776(24,798)(1,927)1,1714,09929466,615
Other comprehensive (loss) income(3,653)12,2912,419-1,584
207
12,848
Transfer to retained earnings
(8,278)-----
(8,278)
Recognition of share-based payments
---1,169--
1,169
Shares fully vested
---(679)--
(679)
Income tax relating to share-based payments
---1,398--
1,398
Balance at 31 December 202575,845(12,507)4923,0595,68350173,073
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's 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.
Number of shares
LTI
round
Grant
date
Vesting
date
Exercise
price, $
Opening
balance GrantedForfeited
Vested
and
exercised
Closing
balance
FY217-Apr-227-Apr-253.20307,463--(307,463)-
FY2224-Apr-2324-Apr-263.33361,681---361,681
FY2324-Apr-2424-Apr-272.72475,546---475,546
FY2424-Apr-2524-Apr-283.18-461,699--461,699
Total1,144,690461,699-(307,463)1,298,926
The weighted average share price for shares that vested during 2025 was $4.04.
* The restatements to comparative period are explained in Section H.
41
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
D2. RESERVES (CONTINUED)
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.
20252024
LTI roundFY24FY23
The inputs into the "option pricing calculator" are:
Issue date share price, $4.283.20
Expected share price volatility, %3231
Option life, years33
Risk-free interest rate, %4.524.92
Exercise price, $3.182.72
Fair value, at the grant date, $1.741.11
The Company has expensed in the income statement $627k (2024: $424k) in relation to the share scheme.
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.
Number of rights
PSR round
Grant
date
Vesting
date
Opening
balance GrantedForfeited
Vested
and
exercised
Closing
balance
FY23 - T120-Dec-239-Mar-2656,748---56,748
FY23 - T220-Dec-2323-Mar-2638,113---38,113
FY23 - T320-Dec-239-Mar-26228,095---228,095
FY24A - T11-May-2412-Mar-2755,904---55,904
FY24A - T21-May-2425-Feb-2737,691---37,691
FY24A - T31-May-2412-Mar-27228,095---228,095
FY24B - T14-Dec-2412-Mar-2738,591---38,591
FY24B - T24-Dec-2425-Feb-2738,591---38,591
FY25 - T11-May-2513-Mar-28-84,779--84,779
FY25 - T21-May-2525-Feb-28-84,779--84,779
FY25 - T31-May-2513-Mar-28-228,095--228,095
Total721,828397,653--1,119,481
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.
42
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
D2. RESERVES (CONTINUED)
For each tranche that vests the rights are awarded on a straight-line basis dependent on the TSR CAGR achieved.
TSR related performance rights vest according to the following performance criteria for each unvested tranche:
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
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:
RoundVesting Period
FY23 - Tranche 1 and 320 December 2023 to 11 days after the announcement date of the FY25 Result
FY24 A and B - Tranche 1 and 37 March 2024 to 11 days after the announcement date of the FY26 Result
FY25 - Tranche 1 and 313 March 2025 to 11 days after the announcement date of the FY27 Result
The fair value of the TSR performance rights have been valued under a variant of the dividend adjusted Monte Carlo simulation.
The estimated fair value for each tranche of performance rights issued is amortised over the vesting period from the grant date.
Tranche 1 & 3
The inputs into the Monte Carlo simulation are:FY25FY24AFY24BFY23
Risk free interest rate, %4.465.004.414.53
Expected life, years2.902.902.302.20
Expected share volatility, %*
31.75 30.87 32.62 31.12
Fair value, at the grant date, $4.303.204.053.17
* Volatility represents the volatility of the Scales Corporation's NZD share price over a 3-year period.
EPS Hurdle - 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.
EPS related performance rights vest according to the following performance criteria:
43
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
D2. RESERVES (CONTINUED)
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:
RoundVesting Period
FY23 - Tranche 220 December 2023 to the announcement date of the FY25 Result
FY24 - Tranche 222 February 2024 to the announcement date of the FY26 Result
FY25 - Tranche 226 February 2025 to the announcement date of the FY27 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 $666k (2024: $286k) 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.
D3. DIVIDENDS ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
20252024
$000's $000's
Final dividend paid - 7.75 (2024: 4.25) cents per share11,0826,042
Interim dividend declared - 12.50 (2024: 7.25) cents per share17,99710,332
29,07916,374
All the above dividends were fully imputed.
The 2025 interim dividend was declared on 3 December 2025 and paid on 23 January 2026.
44
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
D4. IMPUTATION CREDIT ACCOUNT
20252024
$000's $000's
Balance at end of the year8,8545,901
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 Fayman New Zealand 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.
20252024
(Restated)*
Profit attributable to equity holders of the Company, $000's:100,98830,337
Weighted average number of shares:
Ordinary shares142,803,805 142,200,207
Effect of dilutive ordinary shares (non-vested Senior Executive Share Scheme)1,116,045416,550
Weighted average number of Ordinary Shares for diluted earnings per share143,919,850 142,616,757
Earnings per share (cents):
Basic - continuing70.721.3
Diluted - continuing70.221.3
* The restatements to comparative period are explained in Section H.
45
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
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.
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 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, borrowings and lease liabilities. 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.
46
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E. FINANCIAL ASSETS AND LIABILITIES (CONTINUED)
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.
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 unless
the loss is considered recoverable.
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.
47
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E1. TRADE AND OTHER RECEIVABLES
20252024
$000's $000's
Trade receivables
63,477 33,237
Other receivables
1,629 1,416
Receivables from entities accounted for using the equity method
862-
Goods and services tax
5,589 3,372
71,55738,025
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 42.18% (2024: 5 customers who represented
26.60%) 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.
Ageing of past due trade receivables:
1 month26,7586,614
2 months4,7282,019
More than 2 months3,5202,982
35,00611,615
There was an ECL provision of $5.0m as at 31 December 2025 (2024: $0.3m), which is included within the Trade Receivables
balance above.
E2. OTHER FINANCIAL ASSETS
Current
At fair value:
Foreign currency derivative instruments
4,311 1,470
Interest rate swap contracts and forward rate agreements
375760
4,6862,230
48
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E2. OTHER FINANCIAL ASSETS (CONTINUED)
20252024
Non-current
$000's $000's
At fair value:
Foreign currency derivative instruments
2,700 3,636
Interest rate swap contracts and forward rate agreements
13504
Shares in unlisted companies
284185
At amortised cost:
Employee loans
3,426 3,113
Security deposits held as bank guarantee collateral
52-
Related party loans
26,788 29,750
33,26337,188
E3. TRADE AND OTHER PAYABLES
Trade payables43,52614,011
Accruals13,09010,216
Contract liability8,805-
Employee entitlements11,6145,625
77,03529,852
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.
Australian subsidiaries ANZ Exports Pty Ltd, Fayman International Group Pty Ltd and Meateor Australia Pty Ltd individually have
Business Finance Agreements with Westpac Banking Corporation (Westpac Australia), covering term debt, trade finance (seasonal
facilities) and overdrafts.
Profruit (2006) Limited has an overdraft facility agreement with Westpac New Zealand Limited.
USD Term debt remaining at 31 December 2025 is designated as a hedge of net investments in foreign operations.
AUD Term debt relates to Fayman International Group Pty Ltd and Meateor Australia Pty Ltd.
Facility limit
Undrawn facility
2025202420252024
$000's $000's $000's $000's
Term facilities
Rabobank USD23,63511,635--
Westpac USD23,63511,635--
Westpac (Australia) AUD6,208-250-
49
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E4. BORROWINGS (CONTINUED)
Facility limit
Undrawn facility
2025202420252024
$000's $000's $000's $000's
Seasonal facilities and overdraft facility
Rabobank seasonal facility20,00020,00020,00020,000
Westpac seasonal facility20,00020,00020,00020,000
ANZ overdraft1,0001,0001,0001,000
Westpac overdraft----
Westpac (Australia) seasonal facility (Trade finance) AUD60,500-14,334-
Westpac (Australia) overdraft AUD13,500-7,905-
Group term debt under the New Zealand banking syndicate is subject to financial covenants tested quarterly on 31 March, 30 June,
30 September and 31 December of each year. The covenant measures the interest cover ratio and net debt to EBITDA ratio of the
Charging Group. The Group has complied with all financial covenants in 2025 and 2024. There are no indications the Group will
have difficulty complying with the covenants in the next 12 months.
Fayman International Group Pty Ltd debt is subject to financial covenants tested semi-annually on 30 June and 31 December
of each year. The covenant measures the financial debt to EBITDA ratio and the capital ratio. At 31 December 2025, Fayman
International Group Pty Ltd ("FIG") was in breach of its capital ratio covenant. Under the terms of the Business Finance Agreement,
this breach gave the lender the contractual right to demand immediate repayment of all outstanding FIG facilities. As a formal
waiver was not in place at the reporting date, the Group does not have an unconditional right to defer settlement for at least
12 months. Consequently, in accordance with NZ IAS 1, the carrying amount of FIG’s term facilities of $2.1 million have been
classified as current liabilities. Subsequent to balance date, on 29 January 2026, a Reservation of Rights letter was issued by
the lender. The lender acknowledged the breach and confirmed they do not currently intend to take enforcement action, subject
to FIG providing satisfactory remediation plans and updated forecasts.
Meateor Australia Pty Ltd debt is subject to financial covenants tested annually on 30 June of each year. The covenant measures
the interest cover ratio, financial debt to EBITDA ratio and the capital ratio. Meateor Australia Pty Ltd (MAP) has complied with all
financial covenants in 2025.
The floating interest rate is 1.20% to 6.27% (2024: 1.20% to 6.97%). USD term borrowing facilities expire 1 July 2027. AUD term
borrowing facilities mature on 21 June 2027 (MAP) and 27 October 2027 (FIG). Although FIG’s contractual maturity is 27 October
2027, FIG’s term borrowings are classified as current at 31 December 2025 due to the covenant breach and absence of a
balance-date waiver. Seasonal facilities, trade finance drawings and overdrafts presented as current borrowings are repayable
within 12 months.
New Zealand 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 2025 are Scales Corporation
Limited, Scales Holdings Limited, Mr Apple New Zealand Limited, New Zealand Apple Limited, Fern Ridge Produce Limited,
Profruit (2006) Limited, Geo.H.Scales Limited, Meateor Foods Limited, Scales, Logistics Limited and Meateor Group Limited.
50
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E4. BORROWINGS (CONTINUED)
Australian bank facilities are secured by a mortgage over lease security and a General Security over all existing and future assets
and undertakings of Meateor Australia Pty Ltd, Meateor Aus Services Pty Ltd, Fayman International Group Pty Ltd, FI Group Holding
Pty Ltd, ANZ Exports Pty Ltd, and Fayman New Zealand Limited.
20252024
$000's $000's
Seasonal (current) and term (non-current) borrowings:
Opening balance41,25965,647
Debt acquired on acquisition through business combination53,2245,444
Drawdowns74,73381,500
Repayments(34,715)(116,024)
Net drawdown on trade finance facilities13,548-
Effect of foreign currency translation6924,692
Closing balance148,74141,259
E5. OTHER FINANCIAL LIABILITIES
Current financial liabilities at fair value
Foreign currency derivative instruments
6,812 23,700
Put options - Shelby JV LLC
- 18,218
6,81241,918
Non-current financial liabilities at fair value
Foreign currency derivative instruments
12,847 18,688
Interest rate swaps
43-
Put options - ANZ Exports Pty Ltd
1,559-
14,44918,688
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 was included in other financial liabilities in 2024. The option has been cancelled
as part of the further 7.5% acquisition in April 2025.
In 2025 the Group acquired an additional 42.5% of ANZ Exports Pty Ltd. As a part of the transaction, the non-controlling interest
has the option to put their 15% of share equity to Scales at a value based on a multiple on ANZ Exports Pty Ltd EBITDA. This transaction
has been accounted for as a gross liability in other financial liabilities and impacting NCI.
51
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
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.
Interest rate swap contracts:
Fixed Interest Rate
Notional principal
amountFair value
202520242025202420252024
%%$000's $000's $000's $000's
Maturity Date
Within 1 year1.050.899,5019,752238215
2-5 years3.322.5325,04828,3691071,049
After 5 years------
34,54838,1213451,264
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.
52
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E6. INTEREST RATE RISK (CONTINUED)
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.
20252024
+1%-1%+1%-1%
$000's $000's $000's $000's
Impact on net profit after tax422(422)350(350)
Impact on cash flow hedge reserve net of tax738(776)708(749)
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 and lending
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.
Foreign currency instruments at balance date:
20252024
Contract
ValueFair Value
Contract
ValueFair Value
$000's $000's $000's $000's
Sale commitments forward foreign exchange contracts990,646(11,152)572,711(28,487)
Sale commitments foreign exchange options101,818(1,496)178,507(8,795)
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 2026 to 2030 financial years at which stage the amount deferred in equity will be released into profit
or loss.
53
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E7. FOREIGN CURRENCY RISK (CONTINUED)
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.
20252024
+5%-5%+5%-5%
$000's $000's $000's $000's
Impact on net profit after tax
USD(814)900(554)612
AUD432(477)(6)6
EUR(32)35(2)2
GBP--(4)4
CAD----
NZD5(6)--
Impact on cash flow hedge reserve net of tax
USD(31,376)28,337(21,847)19,588
AUD(2,132)1,929(6)5
EUR(2,590)2,298(2,320)2,086
GBP(845)748(807)714
CAD(736)666(250)226
NZD(18)16--
54
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
E8. CATEGORIES OF FINANCIAL INSTRUMENTS
20252024
$000's $000's
Financial assets:
Amortised cost160,906121,269
Derivative instruments in designated hedge accounting relationships7,3996,370
Fair value through profit or loss284185
168,589127,824
Financial liabilities:
Amortised cost385,315147,828
Derivative instruments in designated hedge accounting relationships19,70242,388
Fair value through profit or loss1,55918,218
406,576208,434
The carrying amount of financial instruments at amortised cost approximates their fair value.
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.
E9. MATURITY PROFILE OF FINANCIAL LIABILITIES
On demand
Within 3
months
4 months
to 1 year 1-5 yearsTotal
$000's $000's $000's $000's $000's
2025
Trade and other payables-77,035--77,035
Dividend declared-17,997--17,997
Put options---1,5591,559
Bank overdrafts6,475---6,475
Borrowings62,2271,5594,71487,237155,737
Purchase price payable--8,31033,23841,548
Foreign currency derivatives-3326,48012,84719,659
68,70296,92319,504134,881320,010
2024
Trade and other payables-29,852-29,852
Dividend declared-10,332--10,332
Put options-18,218--18,218
Borrowings-62499042,55044,164
Foreign currency derivatives-1,44121,03419,91342,388
-60,46722,02462,463144,954
55
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F. GROUP STRUCTURE
IN THIS SECTION
This section provides information about Scales Group structure and how it affects the financial position and performance
of the Group. It includes information about subsidiaries and non-controlling interests.
F1. SUBSIDIARY COMPANIES
Subsidiary companiesPrincipal activityCountry of
Holding
Balance date
incorporation
20252024
ANZ Exports Pty LtdTrading companyAustralia85%42.5% 31 December
Fern Ridge Produce LimitedTrading companyNew Zealand100%100% 31 December
Fayman New Zealand LimitedTrading companyNew Zealand95%47.5% 31 December
FI Group Holding Pty LtdHolding companyAustralia100%50% 31 December
Fayman International Group Pty LtdTrading companyAustralia100%50% 31 December
Geo. H. Scales LimitedNon trading company New Zealand100%100% 31 December
Longview Group Holdings LimitedNon trading company New Zealand100%100% 31 December
Meateor Australia Pty LtdTrading companyAustralia100%50% 31 December
Meateor Australia Services Pty LtdTrading companyAustralia100%50% 31 December
Meateor Foods Australia Pty LimitedTrading companyAustralia100%100% 31 December
Meateor Foods LimitedTrading companyNew Zealand100%100% 31 December
Meateor Group LimitedHolding companyNew Zealand100%100% 31 December
Meateor US LLCHolding companyUnited States100%100% 31 December
Mr Apple New Zealand LimitedTrading companyNew Zealand100%100% 31 December
New Zealand Apple LimitedTrading companyNew Zealand100%100% 31 December
Profruit (2006) LimitedTrading companyNew Zealand100%100% 31 December
Scales Employees LimitedCustodial company New Zealand100%100% 31 December
Scales FI Group Holding Pty LtdHolding companyAustralia100%100% 31 December
Scales Holdings LimitedHolding companyNew Zealand100%100% 31 December
Scales Logistics LimitedFreight consolidator New Zealand100%100% 31 December
Scales Logistics Australia Pty LtdFreight consolidator Australia100%100% 31 December
Selacs Insurance LimitedInsurance companyNew Zealand100%100% 31 December
Shelby Cold Storage, LLCColdstore operatorUnited States67.5%60% 31 December
Shelby Exports, IncNon trading company United States67.5%60% 31 December
Shelby Foods, LLCTrading companyUnited States67.5%60% 31 December
Shelby JV LLCHolding companyUnited States67.5%60% 31 December
Shelby Properties LLCNon trading company United States67.5%60% 31 December
Shelby Trucking LLCTrading companyUnited States67.5%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.
56
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
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 companiesCountry of
Non-controlling interest
incorporation
20252024
ANZ Exports Pty LtdAustralia15%N/A
Fayman New Zealand LimitedNew Zealand5%N/A
Shelby JV LLC and its subsidiariesUnited States32.5%40%
Summarised financial information for ANZ Exports Pty Ltd
On 30 September 2025 the Group acquired a further 42.5% interest in ANZ Exports Pty Ltd, bringing to the total Group ownership
interest to 85% and we have gained control in the entity (see note F3).
The summarised financial information in respect of the Group’s subsidiary that has material non-controlling interests as at
31 December 2025, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below:
2025
$000's
Statement of financial position
Current assets19,610
Non-current assets352
Current liabilities(17,305)
Non-current liabilities-
Net assets2,657
Attributable to:
Equity holders of the Company2,259
Non-controlling interests399
Total dividends paid to non-controlling interests-
2025
Oct - Dec
$000's
Statement of comprehensive income
Total revenue25,566
Net profit for the year225
Attributable to:
Equity holders of the Company191
Non-controlling interests34
Statement of cash flows
Net cash provided by operating activities2,216
Net cash provided by investing activities-
Net cash (used in) provided by financing activities(2,216)
Net (decrease) increase in cash(1)
57
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F2. NON-CONTROLLING INTERESTS (CONTINUED)
Summarised financial information for Shelby JV LLC and its subsidiaries
On 16 April 2025 the Group acquired a further 7.5% interest in Shelby JV LLC for USD $24.35m, bringing the total Group
ownership interest to 67.5%. As part of the acquisition, the put option over 5% of Shelby JV LLC was cancelled.
The transaction has been accounted for as an equity transaction. The incremental directly attributable transaction costs
incurred to acquire the additional 7.5% interest were deducted from parent equity. The difference between the amount by which
the non-controlling interests were adjusted and the fair value of the consideration paid was recognised directly in equity and
attributed to the owners of the parent.
The summarised financial information in respect of the Group’s subsidiary that have material non-controlling interests as at
31 December 2025, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below:
20252024
$000's $000's
Statement of financial position
Current assets35,01637,789
Non-current assets21,76717,669
Current liabilities(9,414)(10,746)
Non-current liabilities(65)(144)
Net assets47,30544,567
Attributable to:
Equity holders of the Company31,93126,740
Non-controlling interests15,37417,827
Total dividends paid to non-controlling interests14,84617,175
Statement of comprehensive income
Total revenue234,843235,136
Net profit for the year48,06048,327
Attributable to:
Equity holders of the Company31,38328,996
Non-controlling interests16,67619,331
Statement of cash flows
Net cash provided by operating activities52,98950,589
Net cash used in investing activities(6,366)(5,650)
Net cash used in financing activities(44,758)(43,026)
Net increase in cash1,8651,913
58
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F3. ACQUISITION OF AUSTRALIAN ENTITIES
On 29 September 2025 the Group entered into a sale and purchase agreement with Fayman International Pty Limited and
Colorado Aus Pty Limited to purchase the remaining 50% of FI Group Holding Pty Limited (“FIG”) and its subsidiaries for
$69.2m and an additional 42.5% of ANZ Exports Pty Limited (“ANZ”) for $3.8m.
On 29 September 2025 the Group also entered into a sale and purchase agreement with JAGF Pty Limited, PMI Investments
Pty Limited, Maramel Pty Limited, JMA International Pty Limited and Colorado Aus Pty Limited to purchase the remaining 50%
of Meateor Australia Pty Limited (“MAP”) and its subsidiary for $17.4m.
On 30 September 2025, the acquisition date, these transactions were settled for a total acquisition price of $90.5m.
At acquisition, the discounted fair value of the consideration was $84.7m. MAP and FIG became wholly owned subsidiaries,
and ANZ an 85% owned subsidiary.
Consideration is as follows:
- AUD 37.8m converted at 30 September 2025 to NZD 43.0m paid in cash on 30 September 2025;
- AUD 5.3m converted at 30 September 2025 to NZD 6.0m payable in new shares to be issued on or about 31 October 2025;
- AUD 36.4m converted at 30 September 2025 to NZD 41.5m payable in five annual instalments of AUD 7.3m (NZD 8.3m) each,
starting on 30 September 2026 and ending on 30 September 2030. The acquisition fair value of the deferred consideration was
$35.7m.
The purchase price is payable in AUD.
Subsequently, AUD 11.6m converted to NZD 13.2m was paid in cash for the repayment of the related party loan on
30 September 2025.
The sale and purchase agreements were simultaneous and interdependent. Both included a lockbox arrangement, whereby
the Group was entitled to 100% of MAP and FIG earnings and 85% of ANZ earnings from 1 April 2025.
ANZ's and FIG's extensive edible protein distribution networks with global supply chains, and MAP's manufacturing facility in
Melbourne are strategically important to the Global Proteins division, and the acquisitions align with the group long term
growth strategy.
Purchase of the 50% in FIG, 42.5% in ANZ, and 50% in MAP were treated as a stepped business combination. The previously
held interest was remeasured to fair value at the acquisition date with any gain or loss on the measurement recognized in profit
or loss. Due to the complexity and material nature of the acquisitions, the intangible assets acquired in the transaction are
determined on a provisional basis. The remainder of the business combination accounting was finalised at 31 December 2025.
Details of the ANZ acquisition
Carrying
value on
Fair value on
acquisition
$000's$000's
Current assets
Cash and bank balances99
Trade and other receivables5,2135,213
Derivative assets137137
Inventory9,0759,308
Prepayments492492
Non-current assets
Deferred tax asset320250
59
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)
Details of the ANZ acquisition (continued)
Carrying
value on
Fair value on
acquisition
$000's$000's
Current liabilities
Trade and other payables(4,973)(4,973)
Current tax payable(291)(291)
Derivative liabilities(41)(41)
Related party payables(5,200)(5,200)
Borrowings(2,547)(2,547)
Net assets acquired2,1942,357
Consideration paid in cash1,946
Consideration paid in Scales Corporation Limited shares309
Fair value of deferred consideration1,291
Fair value of the previously held equity interest3,546
Less fair value of 15% non-controlling interest(354)
Less fair value of identifiable assets acquired and liabilities assumed(2,357)
Goodwill4,381
Fair value measurement of deferred consideration
The deferred consideration was measured at its fair value at the acquisition date, using a discount rate of 5.26%.
The discount rate is Group’s incremental borrowing rate, reflecting the time value of money, foreign exchange risk and credit risk.
The valuation was based on contractual payment terms and assumes no early settlement or default.
Future
payment
Nominal
amount
Discounted
amount
Nominal
amount
Discounted
amount
AUD 000'sAUD 000'sNZD 000'sNZD 000's
30-Sep-26264252301287
30-Sep-27264239301272
30-Sep-28264227301258
30-Sep-29264215301244
30-Sep-30264202301230
Total1,3201,1351,5051,291
The deferred consideration is classified as a financial liability measured at amortised cost. Interest expense arising from
unwinding the discount is recognised in the profit or loss in the consolidated statement of comprehensive income over the payment period
using the effective interest method.
Fair value measurement of identifiable net assets acquired
Inventory acquired has been measured at the fair value, being the sales price less costs to sell. Costs to sell include the cost of
raw materials, processing, inbound and outbound freight, and other applicable sale costs.
60
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)
Details of the ANZ acquisition (continued)
Previously held equity interest
A gain of $2.5m was recognised as a result of measuring at fair value the 42.5% equity interest in ANZ held prior to
the business combination. The gain is included in other income in the consolidated statement of comprehensive income
for the year ended 31 December 2025.
Non-controlling interest
The Group has elected to measure the 15% non-controlling interest (NCI) arising from this acquisition at the proportionate
share of the fair value of the identifiable net assets at the acquisition date. Accordingly, no goodwill has been attributed to
NCI. NCI is included as a separate component of equity in the consolidated statement of financial position.
Goodwill arising on acquisition
Goodwill recognised on acquisition represents expected growth opportunities and further access to global markets.
Post acquisition performance
From 1 October 2025 to 31 December 2025, ANZ contributed $21.5m in revenue and $0.2m in net profit to the Group.
Had ANZ been consolidated from 1 January 2025, the consolidated statement of comprehensive income would have included
revenue of $57.7m and net profit of $0.8m.
61
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)
Details of the FIG acquisition
Carrying
value on
Fair value on
acquisition
$000's$000's
Current assets
Cash and bank balances357357
Trade and other receivables12,78112,781
Current tax asset134134
Derivative assets2,3772,377
Inventory73,50276,407
Prepayments1,0511,051
Related party receivables5,2725,272
Non-current assets
Plant and equipment301301
Deferred tax asset2,1831,303
Right-of-use asset344377
Current liabilities
Trade and other payables(26,026)(26,026)
Contract liability(7,646)(7,646)
Derivative liabilities(66)(66)
Borrowings - current(31,693)(31,693)
Lease liability - current(88)(88)
Non-current liabilities
Borrowings - non-current(2,371)(2,371)
Lease liability - non-current(284)(289)
Net assets acquired30,12832,181
Consideration paid in cash35,859
Consideration paid in Scales Corporation Limited shares5,687
Fair value of deferred consideration23,879
Fair value of the previously held equity interest65,425
Less fair value of identifiable assets acquired and liabilities assumed(32,181)
Goodwill98,669
62
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)
Details of the FIG acquisition (continued)
Fair value measurement of deferred consideration
The deferred consideration was measured at its fair value at the acquisition date, using a discount rate of 5.26%.
The discount rate is Group’s incremental borrowing rate, reflecting the time value of money, foreign exchange risk and credit risk.
The valuation was based on contractual payment terms and assumes no early settlement or default.
Future
payment
Nominal
amount
Discounted
amount
Nominal
amount
Discounted
amount
AUD 000'sAUD 000'sNZD 000'sNZD 000's
30-Sep-264,8644,6385,5555,297
30-Sep-274,8644,4105,5555,036
30-Sep-284,8644,1815,5554,775
30-Sep-294,8643,9535,5554,515
30-Sep-304,8643,7275,5554,256
Total24,32020,90927,77523,879
The deferred consideration is classified as a financial liability measured at amortised cost. Interest expense arising from
unwinding the discount is recognised in the profit or loss in the consolidated statement of comprehensive income over the payment period
using the effective interest method.
Fair value measurement of identifiable net assets acquired
Inventory acquired has been measured at the fair value, being the sales price less costs to sell. Costs to sell include the cost of
raw materials, processing, inbound and outbound freight, and other applicable sale costs.
Previously held equity interest
A gain of $23.9m was recognised as a result of measuring at fair value the 50% equity interest in FIG held prior to
the business combination. The gain is included in other income in the consolidated statement of comprehensive income
for the year ended 31 December 2025.
Goodwill arising on acquisition
Goodwill recognised on acquisition represents expected growth opportunities and further access to global markets.
Post acquisition performance
From 1 October 2025 to 31 December 2025, FIG contributed $189m in revenue and $3m in net profit to the Group.
Had FIG been consolidated from 1 January 2025, the consolidated statement of comprehensive income would have included
revenue of $525m and net profit of $10.8m.
63
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)
Details of the MAP acquisition
Carrying
value on
Fair value on
acquisition
$000's$000's
Current assets
Cash and bank balances4,4934,493
Trade and other receivables7,3117,311
Derivative assets8585
Inventory15,19616,044
Prepayments510510
Non-current assets
Property, plant and equipment24,52127,855
Right-of-use asset9,75910,111
Current liabilities
Trade and other payables(6,653)(6,653)
Current tax payable(169)(169)
Derivative liabilities(169)(169)
Borrowings(16,613)(16,613)
Lease liability current(1,000)(1,000)
Non-current liabilities
Deferred tax(2,186)(3,580)
Related party loan(20,834)(23,650)
Lease liability non-current(9,222)(9,111)
Net assets acquired5,0295,464
Consideration paid in cash5,174
Fair value of deferred consideration10,551
Fair value of the previously held equity interest15,725
Less fair value of identifiable assets acquired and liabilities assumed(5,464)
Goodwill25,986
64
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)
Details of the MAP acquisition (continued)
Fair value measurement of deferred consideration
The deferred consideration was measured at its fair value at the acquisition date, using a discount rate of 5.26%.
The discount rate is Group’s incremental borrowing rate, reflecting the time value of money, foreign exchange risk and credit risk.
The valuation was based on contractual payment terms and assumes no early settlement or default.
Future
payment
Nominal
amount
Discounted
amount
Nominal
amount
Discounted
amount
AUD 000'sAUD 000'sNZD 000'sNZD 000's
30-Sep-262,1562,0562,4542,340
30-Sep-272,1561,9552,4542,225
30-Sep-282,1561,8532,4542,110
30-Sep-292,1561,7522,4541,995
30-Sep-302,1561,6522,4541,881
Total10,7809,26812,27010,551
The deferred consideration is classified as a financial liability measured at amortised cost. Interest expense arising from
unwinding the discount is recognised in the profit or loss in the consolidated statement of comprehensive income over the payment period
using the effective interest method.
Fair value measurement of identifiable net assets acquired
An external valuation was obtained to determine the fair value of plant and equipment on acquisition.
Inventory acquired has been measured at the fair value, being the sales price less costs to sell. Costs to sell include the cost of
raw materials, processing, inbound and outbound freight, and other applicable sale costs.
Previously held equity interest
A gain of $13.9m was recognised as a result of measuring at fair value the 50% equity interest in MAP held prior to
the business combination. The gain is included in other income in the consolidated statement of comprehensive income
for the year ended 31 December 2025.
Goodwill arising on acquisition
Goodwill recognised on acquisition represents expected growth opportunities and further access to global markets.
Post acquisition performance
From 1 October 2025 to 31 December 2025, MAP contributed $16.9m in revenue and $0.7m in net profit to the Group.
Had MAP been consolidated from 1 January 2025, the consolidated statement of comprehensive income would have included
revenue of $64m and net profit of $2.4m.
65
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
G. OTHER
G1. CAPITAL COMMITMENTS
20252024
$000's $000's
Apple trees purchase commitments143-
Property, plant and equipment purchase commitments6623,194
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 37Provisions, Contingent Liabilities and Contingent Assets.
66
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
G2. LEASES (CONTINUED)
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 36Impairment of Assetsto determine whether a right-of-use asset is impaired and accounts for any
identified impairment loss under this standard.
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.
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 202444,2522945,02649,572
Additions17,0141272,98120,122
Lease modification(793)-(19)(812)
Depreciation expense(7,042)(302)(1,941)(9,285)
Balance at 31 December 202453,4311196,04759,597
Additions50,219206 1,04851,473
Lease terminations(415)--(415)
Depreciation expense(8,595)(180)(2,024)(10,799)
Balance at 31 December 202594,6401455,07199,856
20252024
$000's $000's
Amounts recognised in profit and loss
Depreciation expense on right-of-use assets10,7999,285
Gain on lease modification(59)(79)
Interest expense on lease liabilities4,7403,774
Expense relating to short-term leases and low-value assets1,8221,287
Lease liabilities
Current15,97113,464
Non-current97,66252,921
67
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
G2. LEASES (CONTINUED)
20252024
$000's $000's
Maturity analysis (undiscounted cash flows)
Year 115,99613,471
Year 214,88112,973
Year 313,10411,214
Year 411,7759,489
Year 510,6558,077
Onwards98,32935,946
164,74091,170
Cash outflows for leases
Interest on lease liabilities4,7403,774
Repayments of lease liabilities8,4649,075
Short-term leases and low-value asset leases1,8221,287
15,02614,136
Sale and leaseback
On 29 August 2025, the Group subsidiary Mr Apple New Zealand Limited, completed a transaction to sell and leaseback
Whakatu Coolstores.
The lease has an initial lease term of 20 years with rights of renewal for a further 15 years. The Group has recognised
a right-of-use asset from the leaseback for the initial 20 year term.
Total right-of-use assets additions recognised from the leaseback of the property amounted to $18.2 million. Proceeds from
the sale and associated lease payments are included in the statement of cash flows. A gain on sale of $0.2m from the
sale and leaseback was recognised in other income.
G3. RELATED PARTY DISCLOSURES
Transactions with related parties
Certain Directors or senior management have relevant interests in companies with which Scales has transactions in the normal
course of business. A number of Scales directors are also non-executive directors of other companies. Any transactions
undertaken with these entities have been entered in the ordinary course of business.
Key management personnel remuneration
The compensation of the directors and executives, being the key management personnel
of the Group, is as follows:
Short-term employee benefits10,3588,431
Share-based payments650456
Post-employment benefits412342
11,420 9,229
68
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
G3. RELATED PARTY DISCLOSURES (CONTINUED)
As at 31 December 2025, 651,276 (31 December 2024: 827,989) shares were on issue to key management personnel in
accordance with the Share Scheme described in note D2.
During 2025, 342,705 (2024: 332,746) new Performance Share Rights were issued to key management personnel in accordance with
the PSR Scheme described in note D2.
20252024
$000's $000's
Transactions with equity accounted entities
Revenue from sale of goods-3,228
Revenue from services18,05914,364
Loss on related party loans-(1,663)
Dividends and distributions received2,6451,545
Interest received2,2191,621
Materials and services received(2,182)(7,617)
Trade receivables at balance date2,5321,563
Trade payables at balance date(51)-
Related party loans26,78829,750
The amounts above include entities that were equity accounted until 30 September 2025.
In October 2022, Meateor Group Limited along with the other joint venture partners, agreed a financing arrangement with
Meateor Australia Pty Limited for a term of 5 years. The total facility provided to Meateor Australia Pty Limited is AUD 4 million
with the interest rate on the drawdown balances charged at 5% per annum.
In July 2023 the financing arrangement with Meateor Australia Pty Limited was amended to nil interest over the term of the loan.
In September 2025, with the acquisition of the remaining 50%, Meateor Group Limited took over the joint venture partners
balance of AUD 4 million.
The loan balance has been recorded using the effective interest method.
In August 2023, a financing arrangement was agreed with Esro Petfood B.V. The total facility available to Esro Petfood B.V. is
€15m. The total drawdown at year end is €12.9m. Interest is charged on each drawdown calculated quarterly at an interest
rate of EURIBOR plus 4%. The facilities are secured and each has a term of 60 months from its initial date of utilisation.
G4. CONTINGENT LIABILITIES
There is no contingent liaibilities as at 31 December 2025 (2024: Nil).
G5. EVENTS OCCURRING AFTER BALANCE DATE
There were no events occurring subsequent to balance date which require adjustment to or disclosure in the financial
statements.
69
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
H. CORRECTION OF ERROR AND RESULTING RESTATEMENT
The Group's bearer plants are carried at fair value. The fair value is determined by the independent valuer using the discounted cash flow
method. As part of the current year's valuation, management identified certain planted areas that are on leased land, which had been omitted
from the valuation in prior years. This error related to plantings predominately in 2017 to 2020. This resulted in an understatement
of the value of the bearer plants. It was also identified that an incorrect yield input had been used for one variety in the prior years. This resulted
in an overstatement of value in bearer plants for this variety.
Accordingly, comparative figures presented in these financial statements have been restated to correct the errors.
Impact on statement of comprehensive income
2024
(increase/(decrease) in profit)
$000's
Revaluation of property, plant and equipment through profit or loss(217)
Depreciation(323)
Income tax expense151
Net impact on profit for the year(389)
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of apple trees2,354
Income tax relating to apple trees(659)
Net impact on other comprehensive income/loss1,695
Net impact on total comprehensive income1,306
Total comprehensive income for the year is attributable to:
Equity holders of the Company1,306
Non-controlling interests-
1,306
Impact on statement of financial position
1 Jan31 Dec
(increase/(decrease) in asset/(liability))
20242024
$000's$000's
Property, plant and equipment4,8416,655
Total assets4,8416,655
Deferred tax liabilities(1,355)(1,863)
Total liabilities(1,355)(1,863)
Net impact on equity3,4864,792
70
Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025
H. CORRECTION OF ERROR AND RESULTING RESTATEMENT (CONTINUED)
Impact on statement of changes in equity
1 Jan31 Dec
(increase/(decrease) in equity)
20242024
$000's$000's
Reserves3,8871,695
Retained earnings(401)(389)
Attributable to owners of the Company3,4861,306
All impacts in the segment information are within the Horticulture and New Zealand segments.
Impact on Earnings per share
The Group’s basic earnings per share has changed from 21.6 cents to 21.3 cents and diluted earnings
per share has changed from 21.5 cents to 21.3 cents for the year ended 31 December 2024.
71
Independent Auditor’s Report
To the Shareholders of Scales Corporation Limited
Opinion We have audited the consolidated financial statements of Scales Corporation Limited and its
subsidiaries (the ‘Group’), which comprise the consolidated statement of financial position as
at 31 December 2025, and the consolidated statement of comprehensive income, statement of
changes in equity and statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial statements, on pages 4 to 71, present
fairly, in all material respects, the consolidated financial position of the Group as at
31 December 2025, and its consolidated financial performance and cash flows for the year
then ended in accordance with New Zealand Equivalents to IFRS Accounting Standards (‘NZ
IFRS’) as issued by the External Reporting Board and IFRS Accounting Standards (‘IFRS’) as
issued by the International Accounting Standards Board.
Basis for opinion We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and
International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (‘PES 1’) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants (including International Independence Standards)
(‘IESBA Code’) as applicable to audits of financial statements of public interest entities. We
have also fulfilled our other ethical responsibilities in accordance with PES 1 and the IESBA
Code.
Our firm carries out other assignments for the Group in the area of taxation compliance
services and assurance procedures over the solvency certificate and selected GHG disclosures
within the Climate Statement. These services have not impaired our independence as auditor
of the Company and Group. The firm has no other relationship with, or interest in, the Company
or any of its subsidiaries.
Audit materiality
We consider materiality primarily in terms of the magnitude of misstatement in the financial
statements of the Group that in our judgement would make it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced (the
‘quantitative’ materiality). In addition, we also assess whether other matters that come to our
attention during the audit would in our judgement change or influence the decisions of such a
person (the ‘qualitative’ materiality). We use materiality both in planning the scope of our audit
work and in evaluating the results of our work.
We determined materiality for the Group financial statements as a whole to be $4,400,000.
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period. These
matters were addressed in the context of our audit of the consolidated financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
72
Key audit matter How our audit addressed the key audit matter
Valuation of Unharvested Agricultural Produce
Unharvested agricultural produce growing on bearer plants (apples), is
measured at fair value less costs to sell in accordance with NZ IAS 41
Agriculture.
The Group’s unharvested agricultural produce was valued at $ 30.6
million at balance date as described in note C2. A revaluation gain of
$2.7 million is recorded in profit or loss.
Fair value less costs to sell is calculated by the Group using a
discounted cash flow model. The model includes significant
unobservable inputs and assumptions including, for each variety, the
forecast production per hectare per annum, expected sales prices, and
risk-adjusting discount rates, as well as costs to harvest and sell.
The risk-adjusting discount rates take into account the risk of unknown
adverse events that may affect crop, harvest and/or market conditions.
The valuation of unharvested agricultural produce is considered a key
audit matter due to the level of judgement required to determine the fair
value less costs to sell.
Our procedures focused on the appropriateness of the valuation
methodology and the key assumptions applied in the internal valuation
model.
Our procedures included, amongst others:
•Holding discussions with management and considering
market information to identify factors, including
environmental/climate or market risks, that would impact the
current crop valuation;
•Assessing and challenging the reasonableness of the risk-
adjusting discount rates;
•Challenging the reasonableness of the key assumptions by
comparing the forecast production, sales
prices, and costs to
harvest and sell for the current growing season to the
approved budgets for each orchard;
•Assessing the historical accuracy of the Group’s budget
forecasts by comparing to the actual results for production
per hectare and sales prices;
•Engaging a Deloitte valuation specialist to review the
valuation model; and
•Checking the mechanical accuracy of the discounted cash
flow model.
Valuation of Apple Trees
As disclosed in note C1, the Group has apple trees valued at $53.1
million. A revaluation loss of $2.7 million is recorded through other
comprehensive income, and a revaluation gain of $1.2 million is
recorded through profit or loss (being a reversal of revaluation losses
previously recognised in profit or loss).
The Group has a policy of recording apple trees at fair value with
valuations performed with sufficient regularity that the carrying amount
at the end of a reporting period does not differ materially from their fair
value.
The fair value of the apple trees is determined by an independent
registered valuer using a combination of discounted cash flow analysis
of forecast income streams and costs from each orchard and sales
comparison approaches. For owned orchards, the fair value of orchard
land and buildings, determined using a sales comparison approach, is
deducted from the overall orchard valuation to arrive at the valuation of
the apple trees.
The discounted cash flow model uses a number of significant
unobservable inputs, in particular: production levels per hectare,
orchard gate returns (market prices), orchard costs, and discount rates.
The valuation of apple trees is considered a key audit matter due to the
significance of the assets to the Group’s consolidated statement of
financial position, and the level of judgement involved in valuing the
apple trees.
Our procedures focused on the appropriateness of the valuation
methodology and the key assumptions applied in the valuation models.
Our procedures included, amongst others:
•Evaluating the Group’s processes in respect of the
independent valuation of the apple trees including its review
of the valuation methodology and determination of the key
valuation assumptions;
•Engaging a Deloitte valuation specialist to consider whether
the valuation methods applied and the discount rate used in
the orchard valuation calculations were reasonable;
•Assessing the competence, objectivity and integrity of the
Group’s independent registered valuer. This included
assessing the valuer’s professional qualifications, experience
and independence. It also included meeting with the valuer
to understand the valuation process adopted and to identify
and challenge the critical judgement areas in the valuation,
including identification of appropriate properties used for the
sales comparison approach
;
•Assessing the valuation methodology for consistency with the
prior year valuation and determining whether any changes to
the methodology were appropriate;
•Checking the mechanical accuracy of the discounted cash
flow (‘DCF’) models on a sample basis;
•Challenging the reasonableness of the key assumptions
applied in the DCF models by comparing them to the prior
year valuation, the Group’s internal data and current market
evidence. We focused on the assumptions relating to
production levels per hectare, orchard gate returns (market
prices), orchard costs, and discount rates;
oWe reconciled the planted hectares for each
orchard from the Group’s internal records to the
planted hectares used in the valuation models,
and investigated material changes in planted areas
from the prior year to the Group’s development
plans;
oOn a sample basis, which included selecting a
combination of existing and new varieties:
oWe tested estimated production levels
per hectare by comparing the
production levels per hectare to internal
production data for the season;
oWe tested the orchard gate returns by
73
Key audit matter How our audit addressed the key audit matter
comparing these to actual sales returns
received during the previous year;
oWe challenged orchard costs by
comparing orchard costs to the prior
year valuation and actual costs
incurred; and
oWe challenged the discount rates by
comparing them with prior year
valuation discount rates and considering
the risks associated with the orchards.
•Assessing the appropriateness of the disclosures relating to
the valuation of the apple trees, including in relation to the
prior period restatement as disclosed in note H.
Step acquisitions of Meateor Australia Pty Limited, ANZ
Exports Pty Limited and FI Group Holding Pty Limited
On 30 September 2025, the Group obtained control of Meateor
Australia Pty Limited (MAP) and its subsidiary, FI Group Holding Pty
Limited (FIG) and its subsidiaries and ANZ Exports Pty Limited (ANZ) by
purchasing additional equity interests in these companies. The total fair
value of the consideration for the acquisitions was $84.7 million, which
included cash paid at acquisition date, deferred cash payments, and
shares in Scales Corporation Limited. As a result of these transactions,
the Group now owns 100% of the shares in MAP and FIG and 85% of the
shares in ANZ. These entities were previously treated as joint ventures
and accounted for using the equity method. The transactions are
treated as step acquisitions under NZ IFRS 3 Business Combinations,
which resulted in the Group recording a $40.3 million gain through profit
or loss on revaluation of the previously held interests. Information
about each of these business combinations is disclosed in note F3 and
information about the investments previously held in each subsidiary is
disclosed in note C3.
The Group has not yet completed the process of identifying and valuing
the intangible assets acquired in the business combinations. The
intangible assets will be recognised and accounted for separately from
goodwill (as appropriate) when this assessment is complete, within the
measurement period of one year from the date of acquisition. The
Group has therefore reported provisional goodwill of $129.0 million.
We have included the determination of the fair values of the assets and
liabilities acquired and the accounting for the step acquisitions as a key
audit matter due to their significance to the financial statements and
the level of judgement involved in assessing the fair values of the assets
and liabilities acquired and the purchase price allocation.
Our procedures focused on the appropriateness of the accounting
applied to the transactions and the fair value of the assets and liabilities
acquired.
Our procedures included, amongst others:
•Assessing management’s accounting treatment for the step
acquisitions of the additional investments in MAP, FIG and
ANZ;
•Obtaining the sale and purchase agreements and related
documents to corroborate the assets and liabilities acquired;
•Confirming the fair value of the consideration paid, including
deferred consideration;
•Considering the appropriateness of the accounting for the
acquisition balance sheets, including the provisional
measurement of goodwill;
•Obtaining management’s independent valuations of assets
and liabilities acquired, except for intangible assets, for
which the valuations are not yet complete.
•Assessing the competence, objectivity and integrity of the
Group’s independent registered valuer. This included
assessing the valuer’s professional qualifications, experience
and independence. It also included meeting with the valuer
to understand the valuation process adopted and to identify
and challenge the critical judgement areas in the valuation;
•Obtaining management’s purchase price allocations and
reperforming the provisional calculations of the goodwill
arising from the business combination transactions;
•Considering the judgements applied by the Group in
determining whether there was any impairment of goodwill
arising from the acquisitions under NZ IAS 36 Impairment of
Assets; and
•Assessing the adequacy of the financial statement
disclosures.
74
Other information
The directors are responsible on behalf of the Group for the other information. The other
information comprises the information in the Annual Report that accompanies the
consolidated financial statements and the audit report and the information in the Climate
Statement. The Annual Report and Climate Statement are expected to be made available to us
after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information identified above when it becomes available
and consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
When we read the other information in the Annual Report and Climate Statement, if we
conclude that there is a material misstatement therein, we are required to communicate the
matter to the directors and consider further appropriate actions.
Directors’ responsibilities for
the consolidated financial
statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such
internal control as the directors determine is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of
the Group for assessing the Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the
audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs and ISAs
(NZ) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-
report-1-1/
This description forms part of our auditor’s report.
Restriction on use This report is made solely to the Company’s shareholders, as a body. Our audit has been
undertaken so that we might state to the Company’s shareholders those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the
Company’s shareholders as a body, for our audit work, for this report, or for the opinions we
have formed.
Nicole Dring, Partner
for Deloitte Limited
Christchurch, New Zealand
24 February 2026
75
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer Scales Corporation Limited
Reporting Period 12 months to 31 December 2025
Previous Reporting Period 12 months to 31 December 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$899,949 54%
Total Revenue $899,949 54%
Net profit/(loss) from
continuing operations
$100,988 233%
Total net profit/(loss) $100,988 233%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not Applicable. Any final dividend in respect of FY25 is
expected to be declared in May 2026
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.98 $2.40
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Note that FY24 comparatives are based on restated financial
statements. Please refer to the attached reports for commentary
and audited consolidated financial statements
Authority for this announcement
Name of person
authorised
to make this announcement
Steve Kennelly
Contact person for this
announcement
Steve Kennelly
Contact phone number +64 3 3712263
Contact email address steve.kennelly@scalescorporation.co.nz
Date of release through MAP
25/02/2026
Audited financial statements accompany this announcement.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.