Here’s why Costa (ASX:CGC) closed over 8% strong today

Image Source: © Babar760 | Megapixl.com

Highlights

  • Costa reported AU$64 million of underlying NPAT in the Financial year 2021.  
  • The company’s berry production also did well amidst the COVID-19 crisis. 
  • The company closed trading 8% strong on the ASX today, backed by this announcement.  

The shares of Costa Group Holdings Limited (ASX:CGC) closed trading 8.591% higher at AU$3.160 per share on the ASX today (25 May). Approximately 3.3 million shares of Costa Group were traded throughout the entire trading session on the ASX today (25 May). 

The board of the Costa Group conducted the Annual General Meeting and addressed its financial performance for the financial year 2021.  

The share price of Costa Group has fallen approximately by 28% on the ASX over the past 12 months. On the other hand, Costa’s year-to-date share price gained almost by 2% on the ASX, as on today (25 May). 

Details of Costa Group’s Q3 FY22 financial performance:

Costa successfully delivered its results as stated in its guidance for the financial year 2021. The company reported its underlying net profit after tax of AU$64 million in the given period, up by 16.2% compared to CY2020.

As a result, the board of Costa determined to pay a fully franked final dividend amount of 5 Australian cents per share for the H2 CY21. Therefore, Costa’s total fully franked dividend payment for CY21 is 9 Australian cents per share. 

Furthermore, the board of the company informed that its berry operations also did well as the production rate reached China’s level despite several challenges, such as the COVID-19 lockdown. 

Meanwhile, Costa’s berry season in Tasmania also went better than in 2021. On the other hand, the berry season in North Queensland started strong this year.  

Image source: © Winnietam | Megapixl.com

Costa’s expected guidance for the remaining 2022: 

Costa is expecting further growth in its operations and capital expenditure, as stated in its previous guidance. The company’s guidance stated earlier reflected around AU$130 million of depreciation and amortisation expenses which stands true till now, along with Costa’s interest of around AU$38 million.  

The amortisation and depreciation are caused due to the impact of 2021 acquisitions and renegotiations of leases being effective late last year. 

In conclusion, Costa anticipates its earnings before interest, tax, depreciation, material items and fair value changes in biological assets to be AU$5 million higher this year. 

Read more: Costa (ASX:CGC) revenue rises 30% on international growth

About Costa: 

Costa Group Holdings Limited is an ASX-listed food and beverage company with a market capitalisation of AU$1.35 billion. The company primarily deals with growing, marketing, packing and selling of fresh fruits and vegetables. 

Costa Group was established in 2015 with its headquarter in Victoria, Australia. Costa distributes its products widely in the supermarket chains in Australia as well as some independent retailers. Costa’s fruits and vegetables are also exported to continents such as Asia, North America, and Europe.  


 


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