Costa Group provides trading update; Shares dropped over 12.5%

Costa Group Holdings Ltd (ASX: CGC) has released trading update for 2H CY2022 along with full year forecast on the progress of this season’s citrus crop was available.

The Company highlighted that the balance portfolio continues to perform in line with projected levels in Berries, Tomatoes and Mushrooms as well as a robust CY2022 result from the international business unit. The Avocado category in the 2H CY2022 is benefiting from enhanced pricing which should deliver a modest gain from prior levels.

In the Citrus category, the Queensland crop is now harvested and packed. The southern crops in the Riverland and Sunraysia are almost 80% through the harvest with late navels and mandarins still to be packed and sold.

Adverse weather conditions, comprising higher rainfall as well as cooler temperatures, have persisted. Despite harvest volumes being in line with budget, the earlier reported lower quality levels across all citrus regions have continued which has resulted in significantly lower packouts plus reduced volumes of first grade fruit for export. The market demand and pricing in the export destinations remain robust which augers well for the 2023 season.

At present, the company expects EBITDA-S for the Group for 2022 to be slightly ahead of previous year’s results.

At AEDT 12:21 PM, CGC shares are trading at AU$2.020, down 12.554% from the previous close. 

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