Australia's Costa Group falls as FY earnings hit due to weather, citrus quality

Costa group

22/02/2023 03:26

** Shares of Australia's Costa Group Holdings  CGC.AX  fall 
as much as 7.5% to A$2.47 , their lowest since Oct. 28
    ** Horticulture company reports FY underlying EBITDA of
A$215 million($147.1 million) for the period ended Jan. 1, down
2% on pcp and below Morningstar estimates of A$220 mln
    ** Analysts at Morningstar say wet weather impacted quality
of citrus and weighed on co's earnings
    ** Brokerage lowers CY2023 EBITDA forecast by 4% to A$264
mln
    ** Analysts at Jefferies say that the market doesn't need
reminding that Aussie horticulture sector is challenging,
magnified by CGC's earnings
    ** Adds that major bottom line metrics of EBIT and
underlying NPAT failed to meet their expectations
    ** Stock has fallen 2.9% this year, as of last close 
($1 = 1.4618 Australian dollars)
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))