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Costa Group Holdings Ltd Shares Up 10% On Fresh Report

Fresh food producer Costa Group Holdings Ltd (ASX: CGC) released its half year financial report to investors today, showing a profit of $66 million.

Fresh food producer Costa Group Holdings Ltd (ASX: CGC) released its half year financial report to investors today, showing a profit of $66 million.

Costa grows a variety of different foods such as avocados, berries, mushrooms and citrus fruit.

Here are some of the highlights compared to last year:

  • Revenue grew by 9.8% to $489.4 million
  • Day to day trading, or EBITDA, grew by 24.2% to $60.9 million (What does EBITDA mean?)
  • Underlying profit grew by 14.5% to $28.6 million
  • Dividend increased by 25% to 5 cents per share

Costa Group CEO Harry Debney said the results reflected a strong first half, with the citrus and tomato categories delivering standout performances.

These results are indicative of a strong first half, with our citrus category continuing to make a standout contribution, fuelled by growing export demand across our key markets including Japan, USA and China. Tomatoes also made an excellent contribution boosted by the snacking segment’s performance“.

We continue to make solid progress on our growth program. Conditional agreement has been reached to acquire Coastal Avocados, which will expand our total avocado growing regions to four. – Debney

Costa Group shares were trading 9.7% higher at $9.84, according to Google Finance.

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