Scales - SCL

[winner69]

That $37.8 TCE for premium apples is 40% higher than a few years

Some is a result of lower NZD but F16 will see an even greater impact of that.

Plenty of dosh results for Scales to hand out in dvidends.

[Jantar]

....
Plenty of dosh results for Scales to hand out in dvidends.

Or to plant more orchards.

[percy]

Or build more coolstores.
Still own none in Tauranga.

[James108]

From Scales. Huge variation - all good for us though.

The $32.8 in 2014 increased to $37.8 in 2015

And will go even higher in 2016 = share price over $4 (think about it)

Traditional apples get about $24/$25 a TCE and didn't increase in 2015

TCE is Tray Carton Equivalent

I ment variation in USD and compared to the volatility in milk powder we have witnessed recently.

What you see there is presumably largely off the back of a low NZD and I agree FY16 should be better, the presentation mentions that based on their hedging FY16 FX should be slightly more favourable than FY15.

Long term lets not forget that even premium apples are still a commodity.

Disc: have been holding since mid last year

[kizame]

Or build more coolstores.
Still own none in Tauranga.

Why Tauranga Percy? The apple crop is in hawkes bay and the port is there too.
If they don't have orchards in BOP it would be too far to transport to Tauranga coolstore and remain chilled.

[percy]

Why Tauranga Percy? The apple crop is in hawkes bay and the port is there too.
If they don't have orchards in BOP it would be too far to transport to Tauranga coolstore and remain chilled.

Timaru,SCL coolstores,Lyttleton Port SCLcoolstores CHCH,NapierSCL coolstores Hastings,Auckland SCLcoolstore Auckland.
The coolstore business is for other people,ie Fonterra,Watties,meat,fish etc.
NZ's major export port is Tauranga,so it would make good sense for SCL to be there.

[BeeBop]

Timaru,SCL coolstores,Lyttleton Port SCLcoolstores CHCH,NapierSCL coolstores Hastings,Auckland SCLcoolstore Auckland.
The coolstore business is for other people,ie Fonterra,Watties,meat,fish etc.
NZ's major export port is Tauranga,so it would make good sense for SCL to be there.

That is what I interpreted from their website also, it provides another income stream - seem to be extending their expertise in S&L. For me, if they didn't have these activities the business would be too scary for me to invest in (one blight and they will be down).

[percy]

Yes there is a lot more to SCL than just Apples.
The coolstore business is a very stable solid business to be in.

[winner69]

That is what I interpreted from their website also, it provides another income stream - seem to be extending their expertise in S&L. For me, if they didn't have these activities the business would be too scary for me to invest in (one blight and they will be down).

Presentation at the AGM used the word 'diversification' at least 8 times - goodness knows how many times the word was said.

Yes a Scales strategic intent - to be well diversified

Love that pet food bit - my favourite division.

[Lewylewylewy]

That $37.8 TCE for premium apples is 40% higher than a few years

Some is a result of lower NZD but F16 will see an even greater impact of that.

Plenty of dosh results for Scales to hand out in dvidends.

Hi w69, what makes you think that F16 will see a greater impact of the lower nzd?