Australian Costa Group: +26% profit
The long, cold spring in Morocco and the disappointing soft fruit harvest in Tasmania and Atherton Tableland weren't enough to depress the results of the Costa Group. The Australian multinational noted a net profit which was 26.3% higher than last year.
The turnover over the financial year rose by 10.2% and reached 1 billion Australian dollars. The remaining profit was 76.7 million Australian dollars. The company is active in various segments and has cultivation locations in Australia, Morocco and China.
Morocco had a long and cold spring this year, which meant the season started eight weeks late. The harvest concentrated towards the end of the season. As a result of this, the contribution of African Blue, part of the Costa Group, was below expectations.
The soft fruit harvest in both Tasmania and Atherton Tableland was disappointing, which limited the advantages of the off season prices. Within the soft fruit category the company is expanding with cultivations in Morocco, China and Australia. The citrus on the other hand presented well, with an excellent start to 2018. Of the 300 hectares in Riverland, 201 hectares were planted in June, of which 157 hectares citrus and 44 hectares avocado.
Tomatoes and mushrooms performed well with results above expectations.
There was an investment in Monarta farm, a cultivation company of mushrooms, among others. This expansion is on schedule. An investment in 10 hectares of greenhouses for snacking tomatoes has been announced for tomatoes. The greenhouse is to come into production from May 2020. Besides this there was investment in the nursery capacity and the packaging facilities within the group.
Costa Group is investing in the avocado cultivation as a fifth pillar of the company. In the last 18 months 6 companies were taken over, including Koci Farm (FNQ).
Publication date: 8/29/2018