Redevelopment of apple production in New Zealand should see the company’s net profit increase to NZ$35-40mn in 2025, says group
New Zealand’s largest apple exporter Scales Corp says it expects to achieve an underlying net profit between NZ$30mn (€16.7mn) and NZ$35mn (€19.5mn) in 2024.
Managing director Andy Borland commented: “2024 has been a very positive year for Scales. We’ve returned to a more normal trading environment, whilst also executing on strategic growth transactions, both in the Horticulture and Global Proteins divisions.”
In May, Scales acquired 240ha of orchards – including 110ha planted with new variety Dazzle – plus a stake in juice concentrate operation Profruit from Bostock Group for NZ$47.5m.
Then, in early October, it finalised the sale of its Te Papa and Blyth orchards in Hawke’s Bay to Craigmore Sustainables.
“In Horticulture, the orchard transactions with the Bostock Group and Craigmore Sustainables have increased our volumes of Premium apple varieties, particularly Dazzle,” Borland continued.
“We were also delighted to welcome Profruit as a wholly-owned subsidiary following the acquisition of the remaining 50 per cent from Bostock Group. The net impact of these transactions on the FY24 financial result was negligible.”
The group’s directors predicted another strong performance in the coming year, and said net profit in 2025 would likely increase to around NZ$35mn-40mn (€19.5-22.3mn).
Its Mr Apple subsidiary expects an apple crop of approximately 3.4mn tray carton equivalents as it removes underperforming orchards and redevelops others.
