Premium apple varieties set to account for 75 per cent of all company’s exports by 2027
Scales Corporation, New Zealand’s largest apple export company, has reported net profit after tax of NZ$30.7mn (€16.7mn) for 2024 – almost six times the equivalent result for the previous year – as it continues to pursue higher sales of premium apples in Asia and the Middle East.
Commenting on the result, managing director Andy Borland paid tribute to the group’s employees for delivering “outstanding results in a period of change”.
And he said the acquisition of orchards from Bostock Group, as well as the sale of its Blyth and Te Papa orchards to Craigmore Sustainables, would help it achieve that export development goal.
“We experienced excellent growth in the volumes of Dazzle during the 2024 season, and the Bostock orchards will substantially accelerate our strategy of increasing Dazzle volumes,” he noted.
“We were also delighted to welcome Profruit into the Group as a wholly-owned subsidiary by acquiring the 50 per cent owned by Bostock Group.”
Return to normal
Scales’ horticulture division produced an underlying EBITDA of NZ$37.7mn (€20.5m), an increase of 154 per cent.
“Horticulture’s performance is returning to more normal levels with improved apple volumes and average prices,” Borland added. “The division also benefitted from the increased ownership of Profruit, which produced an exceptional FY2024 result.”
Mr Apple, one of its fruit divisions, achieved an own-grown export volume of 3.03mn tray carton equivalents (TCEs), up 11 per cent up on the year with continued growth in Asia and the Middle East.
And premium volumes accounted for approximately 72 per cent of total export sale volumes, with increases reported across all premium varieties including “significant growth” in Dazzle, Posy and NZ Queen.
“Mr Apple has commenced building the foundations to capitalise on future benefits of the Bostock transaction with a continued focus on Premium apple varieties,” Borland concluded.
“We now estimate that premium apple varieties will account for around 75 per cent of export volumes by 2027.”
Positive forecast
According to Scales chair Mike Petersen, initial crop indications for the 2025 season are positive at Mr Apple, where picking and packing has commenced.
“A crop of around 3.4m TCEs is forecast for Mr Apple, which includes a higher proportion of premium varieties due to the Bostock and Craigmore transactions,” he said. “Positive pricing is also forecast.”
“Consequently, the Board is pleased to confirm the FY2025 guidance of underlying net profit after tax… of between NZ$35m (€19.1mn) to NZ$40mn (€21.7mn), implying an underlying net profit after tax range of NZ$53mn (€28.8mn) to NZ$60mn (€32.6mn) and an underlying EBITDA range of NZ$92mn (€50mn) to NZ$101mn (€54.9mn).”
