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.