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Scales Corporation Limited (NZX: SCL) Market update

Wednesday 8th December 2021

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The directors of Scales Corporation Limited (NZX: SCL ) have declared a fully imputed interim cash dividend for the 2021 financial year of 9.5 cents per share, to be paid on 14 January 2022. The directors reiterate their commitment to paying an annual cash dividend level of no less than 19 cents per share whilst the company holds Net Cash, although at a level no greater than actual Underlying Net Profit Attributable to Shareholders for each year.

With regard to Guidance for the twelve months to 31 December 2021, directors advise that Underlying Net Profit is now expected to be at the upper end of the previously advised range, of $32.0 million to $37.0 million (which implied an Underlying Net Profit Attributable to Shareholders range of $23.5 million to $28.5 million). This is mainly due to the continued strong performance of the Food Ingredients division.

Managing Director Andy Borland says “The 2021 year has been another challenging one across the Group. Consequently, it is very pleasing to positively update our forecast financial result for the year. Scales continues to benefit from our diversified nature and, in particular this year, from the strategic advantage that Scales Logistics brings to the Group”.

“Whilst 2021 has seen the continuation of disruption to domestic and international operations, Scales’ diversification has helped mitigate this disruption. We have also continued our dual focus on stabilising margins in Mr Apple and the wide-ranging growth initiatives within Food Ingredients. At Mr Apple, the latest phase of orchard redevelopment, predominantly into the Dazzle variety, was completed, and the new cool store adjacent to the Whakatu packhouse was fully operational. The multi-year automation project also commenced. For Food Ingredients, a number of initiatives to further extend our range of services and products are being pursued. Other investment opportunities, both within our existing business sectors and externally, continue to be reviewed.

Looking ahead to the 2022 financial year, directors will now provide full year Guidance based on Underlying Net Profit Attributable to Shareholders, ensuring consistent earnings per share comparisons for each year. The Underlying Net Profit Attributable to Shareholders Guidance range for 2022 of $23.5 million to $28.5 million is at the same level as 2021 initial Guidance.

Please see the links below for details

Distribution notice

Market update

Source: Scales Corporation Limited

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