Scales Group (SCL) reported record interim earnings for the six months ended June 30, 2026, with revenue surging 105% year-over-year to NZD 762 million. Underlying EBITDA climbed 18% to NZD 102 million, while underlying net profit after tax attributable to shareholders increased 7% to NZD 52 million. Earnings per share rose to NZD 0.36, up NZD 0.02 from the prior-year period.
The company reduced operating expenses to 5.5% of revenue, down from nearly 8% in H1 2025, and maintained a net debt ratio of 0.7 times rolling 12-month EBITDA. Pet food ingredients volumes grew about 11% year-over-year, while Mr. Apple export volumes are forecast at 3.5 million TCEs for FY 2026, with a 75% pack-out rate and 79% premium variety share. Export sales to Asia and the Middle East are expected to account for 91% of total export volumes, up from 84% last year.
Scales Group lifted its full-year underlying net profit guidance to a range of NZD 55 million to NZD 60 million. The company also noted that 66% of its export crop had been sold by June 30, 2026, compared with 54% at the same time last year, with only 7% remaining unsold versus 18% previously.
The group reported a NZD 19.7 million impairment on its Esro Petfood joint venture loan, excluding this from underlying results. The venture’s first-half losses totaled NZD 3 million. Management cited geopolitical tensions in the Middle East as disrupting sales routes and increasing logistics costs, though strong air freight demand from the dairy sector partially offset these pressures.
Scales Group’s shares rose 4.25% to $7.11 following the results, near its 52-week high of $7.12. The stock has gained 33% year-to-date and 25% over the past six months.
