SCL - Scales

[KW]

Not sure whether I have told the story about Ziwi Peaks Rolleston factory.
Livers,Kidneys etc are boiled up,then cooled down and flattened.Then cut into dog biscuits.
The stink is horrendous.
Their factory is located between Rolleston Prison and Burnham Military camp.
A good southerly, the prisoners get to clear their sinuses,while a strong easterly means the army clears their's....lol

Ziwipeak is now $72 per kg.  I don't know who is paying that much for cat and dog food, but its certainly not ordinary New Zealanders.  I used to feed my dogs it, but stopped ages ago when the price of it became more than the price of eye fillet steak for myself.  

[Basil]

Gosh I threw Tony a piece of Sirloin steak the other day as a treat that cost me $27 a kilo and thought that was extravagant. Only people with far more money than sense would spend $72 a kilo on dog food.

[lorraina]

Ziwipeak is now $72 per kg.  I don't know who is paying that much for cat and dog food, but its certainly not ordinary New Zealanders.  I used to feed my dogs it, but stopped ages ago when the price of it became more than the price of eye fillet steak for myself. 

Most of Ziwi Peak's products are exported.Never intended for ordinary Kiwis.
Tauranga factory could not keep up with demand,there fore the need for another factory [  Rolleston.]
An old article.Ziwi has since been sold for over $800 mil.2nd article says over $1bil.
https://www.stuff.co.nz/business/102977373/pet-food-maker-takes-on-the-world-expands-in-christchurch
https://www.nzherald.co.nz/business/nz-pet-food-maker-ziwi-sold-offshore-in-deal-said-to-top-1-billion/LT6MPCTMWXCMTLHD7NIKEGRO4I/

[KW]

Most of Ziwi Peak's products are exported.Never intended for ordinary Kiwis.
Tauranga factory could not keep up with demand,there fore the need for another factory [  Rolleston.]

Yup, like most of the good stuff we produce here, we can't afford to actually eat it ourselves.  

[lorraina]

Off course we can afford it.[if we want to].
 

[Basil]

The humanization of pets is very much a growing worldwide trend, especially as the population ages people like to think of their pet as their fur baby and treat them as ostensibly a human child and lavish all sorts of love and treats on them.   Sure, there's a very tiny percentage of extremely wealthy people known as MINO's, (money is no object), that would be prepared to spend that sort of money per kilo on dog food but I would have thought that percentage would be incredibly small, maybe south of 1 in 100,000.  Maybe that still makes the total addressable market worldwide big enough but whatever you make of that argument the numbers don't lie and looking at Scales eps numbers over the last few years I remain very skeptical.  Maybe it's all going to be so much better going forward, or maybe not but I put a LOT of stock in the last 5 years track record, which in my opinion is not supportive of the current price.  Happy for others to run with this one and good luck to you.  I put Comvita in the same camp really.  Agri risks galore and a PE that's sky high and not supported by its track record.  I make no secret of the fact I don't like agri stocks with all the risks involved unless supported by a compelling valuation.
SFF on the unlisted market has traded on metrics commensurate with agri risks but I despise the wild west unlisted markets lax "rules" and the horrendous lack of liquidity is also very off-putting.

[Sideshow Bob]

Most of Ziwi Peak's products are exported.Never intended for ordinary Kiwis.
Tauranga factory could not keep up with demand,there fore the need for another factory [  Rolleston.]
An old article.Ziwi has since been sold for over $800 mil.2nd article says over $1bil.
https://www.stuff.co.nz/business/102977373/pet-food-maker-takes-on-the-world-expands-in-christchurch
https://www.nzherald.co.nz/business/nz-pet-food-maker-ziwi-sold-offshore-in-deal-said-to-top-1-billion/LT6MPCTMWXCMTLHD7NIKEGRO4I/

$1.5 billion.

Great transaction for Mark Stewart and the departing owners.

[Sideshow Bob]

Ziwipeak is now $72 per kg.  I don't know who is paying that much for cat and dog food, but its certainly not ordinary New Zealanders.  I used to feed my dogs it, but stopped ages ago when the price of it became more than the price of eye fillet steak for myself. 

Definitely pricey......

But as being dried, should only need about 20-25% of the volume comparing to feeding straight meat.

[Sideshow Bob]

While petfood markets have hit some speedbumps currently (interest rates, inflation, consumer spending, China, return to the office), Meateor appears well placed to capitalise on long-term trends.

End of the day, while not having a branded product, manufacturers will always need protein/ingredients.

They've made a number of strategic moves in the market over recent years - JV with Alliance, buying into Shelby in the US, currently building a plant in Australia, and creation of 50% owned company in Europe.

They have moved vertically into the market, but also geographically and across different species (when they bought Shelby it added 80,000MT of sales and expect other proteins/products in Europe). So would see they have spread their risk to an extent.

From my understanding, this season has been a bit of a struggle for volumes/sales - as for lamb there is alot more supply out of Australia, many manufacturers had stock through Covid and are unwinding positions, US manufacturers sending less to China with changes in the Chinese market, and consumer moving away from more expensive high-meat inclusion petfoods to more economical options.

No idea about apples, but looks like logistics makes a reasonable profit, but helps with shipping/exports from the apple and petfood. But looks like protein/pet is where it is at for Scales, and where most of their focus is.

Hopefully their new plant in Oz and new EU venture should start to contribute FH 24.....

Basil - I think you'll find the MINO's or MIANO's (money is almost no object) is way way less than 1 in 100,000 when it comes to pets.

[KW]

Definitely pricey......

But as being dried, should only need about 20-25% of the volume comparing to feeding straight meat.

Just did a comparison, and the feeding guide for Ziwipeak (using their website calculator) is actually exactly the same amount by weight as what I currently feed my dog (25g of Orijen Small Breed biscuits).

[winner (n)]

All this talk of pet food and how much money in it has got SCL share price on a roll.

Be back over 4 bucks soon and then heading to where it's been before in 5 bucks plus

Horticulture cyclical ...is pet food a cyclical as well?

[winner (n)]

All TA indicators say SCL is a STRONG BUY

https://www.investing.com/equities/scales-corporation-ltd-be-technical?cid=1096394

[Waltzing]

Some pastel lines..

Dont know enough about NZ Horticultural sector and need some good coverage including WINE...

 

[winner (n)]

Basil pointed out the other day -

Looking at the eps off Jarden's website for 2018 to 2022 we see eps as follows 0.20  0.32  0.15  0.19  0.14
Average that out to eliminate seasonal variations in earnings from one year to another and we get 20 cents eps a share

So average over 5 years was 20 cents. BlackPeter pulled out his spreadsheets and said average epsover last 10 years has been 26 cents

The median was 19 cents

Wonder what the 5 year CAGR was?

Which is more meaningful?

Jeez maths a big puzzle eh

Suppose you use the number that suits your argument

[BlackPeter]

Basil pointed out the other day -

Looking at the eps off Jarden's website for 2018 to 2022 we see eps as follows 0.20  0.32  0.15  0.19  0.14
Average that out to eliminate seasonal variations in earnings from one year to another and we get 20 cents eps a share

So average over 5 years was 20 cents. BlackPeter pulled out his spreadsheets and said average epsover last 10 years has been 26 cents

The median was 19 cents

Wonder what the 5 year CAGR was?

Which is more meaningful?

Jeez maths a big puzzle eh

Suppose you use the number that suits your argument

It appears you are both describing a cyclical currently sitting somewhere in the lower two quadrants of its business cycle.

Actually - this would augur well for anybody interested in not just increased earnings, but as well the chance for some capital gains, given that cyclicals in the lower quadrants tend to move upwards.