‘Subdued’ buying of tomatoes and berries hits Costa Group profit

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Fruit and vegetable producer Costa Group has reported a half 12 months statutory web revenue of $four.three million, down $70 million on the prior corresponding interval because of a variety of things together with a smaller citrus harvest and “subdued” shopping for of tomatoes, berries and different produce in December.

"Subdued" buying of tomatoes, berries and other produce hurt Costa in December.

“Subdued” shopping for of tomatoes, berries and different produce harm Costa in December. Credit score:Tanya Lake

Whereas the elements affecting Costa’s outcomes had already been flagged to the market, the corporate confirmed this morning that its $eight.5 million web revenue earlier than materials gadgets and amortisation was “under plan” by about $three.5 million.

However Costa’s complete income for the December half, whereas down 2.four per cent to $477.6 million, was effectively forward of consensus expectations for income of $433 million.

“The six-month monetary interval to December has delivered a decrease revenue quantity than anticipated,” stated Costa chief government Harry Debney.

“There have been a number of contributing elements to this, a few of which had been accounted for together with bringing African Blue on to our steadiness sheet on account of majority possession, extra pre-harvest farming price funding by way of our elevated worldwide footprint and an ‘off’ citrus season by way of the biennial nature of the crop,” he stated.

Costa recorded earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) earlier than the accounting therapy referred to as SGARA of $35.three million, down from $60.9 million within the prior corresponding interval.

Costa introduced a completely franked 5 cent dividend for shareholders, to be paid on April 12. The 5 cent interim dividend is unchanged from final 12 months.

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