The Australian Costa Group has downgraded their previously announced expectations for the 2018 financial year ending in December. In the last year of the month, the company was confronted with a lagging demand for several products in its range.
There was a disappointing demand for tomatoes, soft fruit, and avocado in the last month of 2018. This is according to a press statement released by the company. The new year got off to a slower start than expected.
"This irregular demand was reflected in lower prices for a number of products. The import citrus season also ended earlier than usual", states the press release.
If this market situation persists, in combination with other factors, a stable result will be achieved in the twelves months of NPAT-S to the end of June 2019. These factors include the delayed commissioning of the upgraded Monarto mushroom facility in South Australia and the previously announced extra costs for investments such as African Blue.
“This is compared to our previous expectation of a slight growth of double figures over the same period," reads the press statement.
According to the company, the current circumstances are not structural. They expect trade results in the 2019 calendar year to be in line with their earlier expectations.
This amounts to double-figure growth (CAGR) for both the 2017 and 2019 calendar years. The company also reported that their expansion plans in their various categories are processing well.
Further information is expected at the end of February.