This article first appeared on GuruFocus .
-
Revenue:$900 million, an increase of 54%.
-
Underlying EBITDA:$137.6 million, an increase of 50%.
-
Underlying Impact Attributable to Shareholders:$61.8 million, an increase of 82%.
-
Reported Impact Attributable to Shareholders:$101 million, an increase of over 200%.
-
Horticulture Division Earnings:73% increase in earnings.
-
Mr. Apple Export Volumes:3.7 million TCEs, up 21% compared to 2024.
-
Logistics Revenue Increase:21% increase in revenue.
-
Logistics Underlying EBITDA Increase:10% increase.
-
Global Proteins Underlying EBITDA Target for FY27:Increased from $70 million to $85 million.
-
Return on Capital Employed (ROCE):14.6%, compared to a restated 14.3% last year.
-
Warning! GuruFocus has detected 4 Warning Sign with HAM:S05.
-
Is HAM:S05 fairly valued? Test your thesis with our free DCF calculator.
Release Date: February 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Scales Corp Ltd ( HAM:S05 ) delivered record results across all earnings measures for FY25, with underlying EBITDA increasing by 50% to $137.6 million.
-
The horticulture division achieved an outstanding result, with increased volumes, higher average prices, and an improved variety mix, aided by the acquisition of Bostock orchards.
-
Global proteins division saw solid performance, with significant contributions from Shelby, Meateor Australia, Meateor New Zealand, and Fayman International.
-
Logistics division produced another record result, driven by a significant increase in volumes, particularly in air freight, which saw an 81% increase.
-
The company has made strategic investments in joint ventures, increasing its shareholdings in Shelby and ANZ Exports, which are expected to contribute positively to future earnings.
Negative Points
-
The forecast for FY26 indicates a normalization of horticulture gains, with a 5% guided fall in apple volumes due to expected yield reductions.
-
There is a potential decrease in revenue per kilogram in the pet food ingredients business due to changes in business mix.
-
The logistics division faces challenges with the cherry season not performing as well as the previous year.
-
The European expansion for global proteins is taking longer than expected, with delays in establishing a second plant.
-
Net debt levels increased significantly due to working capital requirements and joint venture investments, impacting the financial position.
Q & A Highlights
Q: What are the expected headwinds for the horticulture division, and how will land redevelopment affect production? A: Andrew Borland, Managing Director, stated that there are no significant reductions in land area expected due to redevelopment. The process has been managed without material reduction in production, as new variety redevelopment from prior years is maturing.
Q: How is the pricing for premium apple varieties expected to trend, and what factors influence this? A: Andrew Borland explained that pricing is expected to remain positive, influenced by currency cover, market conditions, and product characteristics like color and size. Although the size is slightly down this year, the market outlook remains positive.
Q: With the commissioning of the second implant collection and cooling system in the US, why is Shelby's guidance flat? A: Andrew Borland clarified that while there is a positive uptake in the US market, the guidance for Shelby remains conservative. However, there is an expected increase in net volumes from the new plant.
Q: How will the closure of Tyson's plant in Lexington affect Shelby's margins? A: Andrew Borland noted that while the closure is acknowledged, it is not expected to impact Shelby's financial position significantly. The company can replace supply and remains flexible in sourcing products.
Q: What are the expectations for logistics in FY26, and what factors contribute to this outlook? A: Andrew Borland mentioned that logistics is expected to see reasonable positive growth in earnings. Despite a weaker cherry season, other strong products are expected to offset this, contributing to growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
