Scales Corporation boosts stake in Shelby Foods for USD 24.4m

Scales Corporation has announced it will increase its shareholding in subsidiary Shelby JV LLC (Shelby) by 7.5% for USD 24.4 million. The investment aligns with Scales' strategy to increase its presence in the Global Proteins division. Scales Managing Director Andy Borland noted Shelby's strong performance, exceeding initial expectations. The increased valuation reflects Shelby's earnings growth, improved business structure, diversified customer base, and positive macro trends in the natural protein petfood sector. Scales anticipates the investment will impact the full FY2025 year, leading to revised earnings guidance. The board now expects Underlying Net Profit after Tax Attributable to Shareholders to be between NZD 37 million and NZD 42 million. Underlying Net Profit after Tax is expected to reduce to between NZD 51.5 million and NZD 58.5 million. The purchase will be funded through USD-denominated term debt.