Costa Group Holdings Limited (ASX : CGC) company is involved in producing, packaging and marketing of vegetables and fruits to FMCG companies and food retailers. The company is also involved in providing chilled logistics warehousing services, wholesale services and marketing services.
On 19 September 2018, Costa’s stock price increased by 4.205%. Company’s plans and investments in growth projects could be a reason behind this increase. The Company has announced the expansion of the Monarto, South Australia Mushroom Farm which is a most modern mushroom composting and growing facility. With the cost of $ 71 million, current production capacity will be doubled to 240 tonnes per from 120 tonnes per week. Company’s expansion program for China has progressed well, with a total of 100 hectares planted till the end of fiscal year 2018. A significant development and preparation work were completed ahead of the wet season. Company is currently exploring the planting option for the year 2020. Company has organized development and training for the local leadership and management teams which involves local and overseas staff. The company has also announced that commencing from January 2019, company will change its financial year end to December. Company is planning to report a six-month interim fiscal period in order to transition reporting from the financial year to calendar year.
For the year end 1 July 2018, the company has earned a revenue of $1,002m. This is the first time that the company has reached $1 billion milestone. The revenue has increased by 10.2% as compared to last year. Company’s two products Avacado and Cirtus are having the largest sale in this financial year. 19% of the total sales revenue has come from outside the Australia which includes export. The Company has earned Statutory NPAT of $115.2 million which includes African Blue acquisition related items and includes $ 48.3 million gain from the consolidation of the 49% interest which was held previously. Company earned $150.8 million EBITDA before SGARA and material items which has increased by 30.9% over fiscal year 2017. NPAT before SGARA and material items which saw growth of $26.3 million over last year is $76.7 million. The company is expecting to generate low double digit NPAT-S growth in the upcoming years. Costa Group Holdings Limited has recently announced plans for China and Australia Expansion.
CGC’s share traded at $6.815 with market capitalization $ 2.09 billion as on 19 September 2018 (AEST 2:50 PM).
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