Costa Group’s 1HCY23 results showed impressive international growth and a mixed performance on the domestic front. Costa reiterated a takeover by Paine Schwartz Partners was uncertain but would have an update by the middle of September.
Costa Group’s international segment grew 32.8 percent versus prior corresponding period (pcp), with China and Morocco delivering an “impressive performance”. International EBITDA-S was up 43.5 per cent pcp.
Costa said the industry wide table grape harvest was around 40 per cent lower pcp due to CY22 weather, which had a $9 million impact in 1H.
A late starting citrus season and drop in late season citrus quality as well as downgrades in fruit volume and size will have around a $30 million impact on Costa’s full year EBITDA-S. But the company said the factors were non-structural and trees were unaffected.
It expects a strong second half berry earnings due to stable weather and positive pricing in the early stages of the season.
Snapshot
- Revenue: up 8.7% to $770.7m
- Net profit after tax: down 6.2% to $37.8m
(EBITDA-S: Earnings before Interest, Tax, Depreciation & Amortisation, the fair value movements in biological assets (SGARA) and Material items.)
The group said it had updated Paine Schwartz Partners (PSP) on its latest trading conditions for ongoing due diligence process and that discussions were ongoing. It reiterated it was unsure if the transaction would eventuate and at what price but expected to be able to provide an update by the middle of September.
Costa said it expects FYCY23 EBITDA-S to be ahead of FY22 results.
