Costa Group has reported revenue growth for this year’s first half, largely driven by the international segment with a 32.8 per cent increase year over year.
China recorded a 53 per cent increase in revenue thanks to strong and sustained demand over the entire season, while Morocco was up 13 per cent driven by higher overall pricing. Emerging regions/genetics licensing saw a 24 per cent growth in revenue.
Together with a mixed domestic produce segment performance, group revenue rose 8.7 per cent versus the prior comparative period to $770.7 million, with EBITDA-S of $150.2 million, up 7.2 per cent, and NPAT-S of $37.8 million.
However, the group expects a deterioration in late season 2PH fruit quality and southern region volume and fruit size downgrades to have a $30 million impact on full-year EBITDA-S.
The softening in tomato demand may continue through the second half, impacted by higher industry-wide volumes.
The group anticipates strong second-half berry earnings with stable weather and positive pricing.
As Australia’s leading grower, packer and marketer of fresh fruit and vegetables, Costa Group operates over 7200 planted hectares of farmland, 40 hectares of glasshouse facilities and three mushroom growing facilities across the country.
