Australia's Costa Group sees best day in six months on robust trading update

Costa group

25/05/2023 03:44

** Shares of Costa Group  CGC.AX  advance as much as 7.1% to
A$2.550; on track for their best day since Dec 30, if gains hold
    ** The horticulture company says export market demand from
major markets for its citrus category - one of its largest
segments -  is expected to be favourable for this season
 urn:newsml:reuters.com:*:nFWN37L1DX
    ** Says that all earnings from its citrus harvest earnings
will fall in the second half of CY23 
    ** "The early outlook is very positive relative to the prior
year and remains in line with our expectations, with positive
indications for both yield and fruit quality" - Co 
    ** Adds that increased input cost pressures of 2021-22 are
slowly easing with pricing of some inputs starting to reduce
from recent historical highs.
    ** Jefferies says the company's two critical categories —
International and Citrus — look set to deliver particularly
strong improvement for FY23 vs prior corresponding period 
    ** Shares hit highest since May 12 
    ** Stock has fallen ~13.5% this year, as of last close

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))