Scales purchases Bostock assets
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Today, the diversified agribusiness announced its full year results for 2024, reporting a 39% increase in its underlying net profit after tax (NPAT), up to $53.6 million.
The company also reported earnings before interest, tax, depreciation and amortization of $91.7 million, up 36% on 2023.
Borland says the company’s 2024 purchase of orchards from Bostock Group and the sale of its Blyth and Te Papa orchards to Craigmore Sustainables will help achieve its strategy to focus on the sale of premium apple varieties to Asia and the Middle East.
“We experienced excellent growth in the volumes of DazzleTM during the 2024 season and the Bostock orchards will substantially accelerate our strategy of increasing DazzleTM volumes,” he says.
Borland says Scales is also welcoming Profruit into its group as a wholly-owned subsidiary by acquiring the 50% owned by Bostock Group.
He says the company’s horticulture division’s performance is returning to normal, with improved apple volumes and average prices.
“The division also benefitted from the increased ownership of Profruit, which produced an exceptional FY2024 result,” he adds.
Borland says the company’s Mr Apple brand’s export volume grew by 11% on the 2023 figures, with continued growth in Asia and the Middle East.
“Premium volumes accounted for approximately 72% of total export sale volumes, with increases across all premium varieties including significant growth in DazzleTM, PosyTM and NZ Queen.
“We now estimate that Premium apple varieties will account for around 75% of export volumes by 2027.”
“Scales continues to have a strong financial position, with net cash of $12.5 million as at 31 December 2024,” Borland says.
