Costa Group shares down over 20% following profit downgrade

Company News

by Anna Napoli

Fruit company, Costa Group (ASX:CGC) has cuts its earnings forecasts for the year.

The company has downgraded its net profit after tax to $57 million to $66 . The company had previously said it expected growth of at least 30 per cent on the 2018 year.

The downgrade comes amid a season of bad quality fruit, low prices and even fruit fly.

From early May, the Driscoll’s grower network started to see high waste in the major raspberry variety from a condition called ‘crumbly fruit’. Costa is seeing resulting low yields and harvest labour inefficiencies which are substantial.

And Costa's (ASX:CGC) share price has taken a hit in early trade this morning, currently down over 20 per cent to $4.14.

 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.