Scales Corporation has provided a market update, reiterating its guidance for the 2023 trading year and providing guidance for the 2024 financial year.
For the twelve months to 31 December 2023, the company expects an underlying net profit after tax attributable to shareholders in the range of $14 million to $19 million.
Despite the challenges faced, including the impact of Cyclone Gabrielle on its Hawke's Bay staff and community, Scales has seen positive trading in the second half of the year, benefiting from its diversified nature and the performance of its Global Proteins division.
Looking ahead to 2024, the company expects an underlying net profit after tax attributable to shareholders in the range of $30 million to $35 million.
This guidance takes into account the forecasted return to normal trading for the Horticulture division, the anticipated strong performance of the Global Proteins division, and the non-contributory nature of recent investments in the division.
Scales has also declared an interim cash dividend of 4.25 cents per share for the 2023 financial year, with total dividends for the year expected to be between 50% and 75% of underlying net profit after tax attributable to shareholders.
Dividends for 2024 are expected to be higher than those for 2023.
However, it is likely that dividends after the 2023 year will be partially, rather than fully, imputed.
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