Australia

Costa Group suffers from extreme weather that hurts citrus harvest

Costa Group, Australia’s largest fresh produce maker, has cut earnings forecasts for its citrus business after excessive rainfall and cooler temperatures brought on by La Niña have damaged orange and mandarin crops.

The ASX-listed Costa Group’s citrus fruits are grown in three main regions. Approximately 40% in the Riverland region (South Australia), 40% in Sunraysia (which straddles the NSW-Victoria border) and 20% in Central Queensland.

The company said on Monday that bad weather had hit citrus harvests across the country hard.

“Weather impacts have been fairly consistent across the country, which is very unusual. Usually north-south split, but this year La Niña and other impacts are affecting the entire country,” he said. Costa said tentatively. CEO Harry Debney.

La Niña destroyed the Costa Group’s citrus crops.credit:Dominic Lorimer

The ASX company had flagged earlier this year Rain bombs reduce citrus qualityThis continues to drive up labor, pest and disease control costs.

The Costa Group’s Queensland citrus has been harvested and packed, while the southern crops of the Riverland and Sunraysia regions have completed about 80% of their harvest.

Debney said declining crop quality has resulted in a “significant decline” in shipments, “at least 20%” below expectations. This is expected to affect the earnings of Costa’s citrus business.

“Net results to date and projections for the remainder of the citrus season are expected to translate into full-year EBITDA-S for the citrus category significantly lower than previous projections.”

The revised earnings guidance was not well received by the market, with investors dropping Costa Group shares 11.5% to $2.04.

Costa Group suffers from extreme weather that hurts citrus harvest

Source link Costa Group suffers from extreme weather that hurts citrus harvest

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