Scales - SCL

[percy]

At December 2022 their cash position was $27mil.
They look to greatest growth in pet food.From their agm presentation.
[SLIDE 26: GLOBAL PROTEINS – WHAT WE LIKE ABOUT THE GLOBAL PROTEINS INDUSTRY]
I’d now like to touch on the future of the Global Proteins division, as we’re very optimistic about its prospects.
We’ve summarised the attributes of the division on the current slide, which includes resiliency against market cycles
as well as above-average returns on investment. The worldwide nature of the opportunities also allows us to leverage
our existing networks, with our current focus being towards North America.
The industry is supported by many macro tailwinds including the global growth of the middle class and its associated
demand for protein. We see no abatement in the demand for protein for the foreseeable future.
Our petfood customers are also particularly optimistic about the future, and are investing substantial sums to meet
future demand.
Supply chains and sourcing of raw materials have been identified as the biggest future production challenges for
petfood manufacturers. Meateor and Shelby have a very experienced and well-connected leadership team and have
developed deep relationships with customers over 25 years, which gives us confidence we will participate alongside
our customers in this growth.
[SLIDE 27: GLOBAL AMBITIONS]
As a result of the opportunities I’ve just described, we have global ambitions for the division.
As shown on this slide, we already have significant operations in New Zealand, Australia and North America. North
America is the world’s largest petfood market, with Europe being the second largest. As many of our existing customers
operate in Europe, we’re continually looking for ways to extend our operations there. As a result, discussions regarding
potential opportunities are currently taking place.
[

[Sideshow Bob]

Nice one Percy. Clearly signaled.

[Ricky-bobby]

Yep good move I recon. Talking to an Jarden analyst a couple months back, she said anything pet was all the rage and where a lot of action was.

[Sideshow Bob]

Yep good move I recon. Talking to an Jarden analyst a couple months back, she said anything pet was all the rage and where a lot of action was.

Starting to flatten off now - cost of living, inflation, competition, return to the office etc etc and now seeing consumers trading down. Been a bull-run in many ways.

Probably the peak was when Ziwi sold for $1.5b to PE.

But in the end, these guys can't do anything without raw material.....will cats & dogs eat artificial meat? Dunno. And it isn't like manufacturing petfood out of prime cuts - it is residual product that typically isn't consumed by humans and is at the lower end of the price scale that artificial meat might not be able to afford service...??

[Sideshow Bob]

https://www.nzx.com/announcements/416859

Highlights – 6 months to 30 June 2023 (1H23)
• Underlying NPAT Attributable to Shareholders of $14.5 million (1H22: $25.6 million), down 43.5%
• Reported NPAT of $14.3 million (1H22: $35.1 million), down 59.3%
• Excellent performance by the Global Proteins division
• Commendable Horticulture operational result in light of the effects of Cyclone Gabrielle
• Solid result from Logistics despite volumes also being affected by the Cyclone

[Leemsip]

https://www.nzx.com/announcements/416859

Highlights – 6 months to 30 June 2023 (1H23)
• Underlying NPAT Attributable to Shareholders of $14.5 million (1H22: $25.6 million), down 43.5%
• Reported NPAT of $14.3 million (1H22: $35.1 million), down 59.3%
• Excellent performance by the Global Proteins division
• Commendable Horticulture operational result in light of the effects of Cyclone Gabrielle
• Solid result from Logistics despite volumes also being affected by the Cyclone

I am a little disappointed by the proteins division flat EBITDA. Company keeps talking this up as the growth engine etc etc. Otherwise happy with the results, horticulture should bounce back next year.

[Leemsip]

Still a promising company. Growth in proteins, horticulture should have a good year in 24. This is my biggest holding.

[Sideshow Bob]

Looking like it will go sub $3's. In recent times it was only through Cyclone Gabrielle that it got below $3....

[kiora]

"Hawke's Bay orchardists waiting to see if their trees will burst into life, or die after cyclone"
https://www.stuff.co.nz/business/far...September+2023

[Filthy]

from NPH results today: “Several major apple exporters suffered less permanent flood damage to their trees than initially thought and replanting of damaged areas is already underway or complete. Continued investment in the region’s apple industry underscores the value of the cargo and the positive long-term outlook for volume growth across Hawke’s Bay’s horticulture sector".