Costa Group 1st half results announced
Australia’s leading grower, packer and marketer of fresh fruit and vegetables today announced its financial results for the half year ended 28th June 2020 (1HCY20). Presentation materials for the investor and analyst webcast and conference call to be hosted by Costa commencing at 10:00am today have been lodged with ASX. These materials can also be accessed at http://investors.costagroup.com.au/Investor-Centre/
• Australian operations now recovered from weather and drought challenges of late CY19 and 1HCY20.
• Strong performance from International segment. EBITDA-SL growth of 98% versus 1HCY19.
• Broad based forward momentum in Australian portfolio into 2HCY20 with market conditions showing sizable improvement driving increased earnings.
• High water security achieved across all sites.
• 1HCY20 financial impact from drought estimated at circa $15m EBITDA-SL in Tomato and Berry categories. Crops recovered to full yield by May, with new Corindi (NSW) raspberry crops coming on stream from mid – August and blackberry crop from mid – October.
• Strong retail mushroom demand throughout half, complemented by Monarto facility expansion fully commissioned in July and meeting production targets.
• As previously flagged, citrus season volume lower than normal plus quality impact from hail storm of late CY19.
• Strong citrus export and domestic demand and pricing with encouraging expectations for balance of season.
• Aggregate market conditions favourable across our core product portfolio versus prior period. Supports our view of positive financial outcomes in 2HCY20.
• Improved leverage of 1.66x, with strong balance sheet and cashflow generation.
• Strategy and investment profile supports business resilience, sustained growth and long term shareholder returns.
To view the full announcment, click here.