Shares in Costa Group have fallen by almost 10 per cent despite the fruit and vegetable grower doubling full-year net profit to $115.2 million.
Costa’s revenue for the twelve months to June 30 rose by 10 per cent to $1.02 billion, while earnings rose 31 per cent to $150.79 million.
Strong performance from its citrus, mushrooms and tomato categories helped outweigh a lower than expected contribution from berry harvests in China and Morocco.
Bad weather, particularly in Morocco, led to harvest delays and lower-grade product.
Costa’s has forecast a slowing in future earnings to “low double-digit” growth and at 1245 AEST, Cost shares were down 9.04 per cent to $7.95.
The company declared a final dividend of 8.5 Australian cents per share, up 1.5 cents from a year earlier.
It also announced it would be changing to calendar year reporting, due to an earnings profile shift.
COSTA GROUP’S PROFIT DOUBLES:
* Net profit up 99.5pct to $115.2m
* Revenue up 10pct to $1.02b
* Final dividend of 8.5 cents, up 1.5 cents