bigdog
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ASX announcement yesterday
7/11/2019 3:40:55 PM 2
Riverland weather event - preliminary impact assessment
The Age reports today
Costa flags hail storm hit as retail raising rolls on
Under pressure fresh food producer Costa Group has suffered another blow, with some of its citrus farms in South Australia being hit by a hail storm on Tuesday.
In a statement to the ASX shortly before the market closed on Thursday, Costa said that the storm could have a $3 million to $4 million impact on its net profit in calendar year 2020.
But the company, which is in the process of raising money from retail shareholders and recently raised $87 million from institutional investors, stressed that this estimate was based only on a preliminary assessment.
It also said it was possible that the storm would have no ultimate financial impact and that its overall portfolio could "counterbalance" any potential adverse impact.
"However, as the recently announced pro-rata entitlement offer is currently in progress, we believe that more fulsome disclosure of indicative information is appropriate at this stage," Costa said.
The company has not changed its 2020 forecast of a net profit of about $56.6 million.
Costa said there would be no impact on its nearly completed 2019 citrus harvest and no impact in 2021 was expected.
However, it said the storm could have "some impact on the quality of some of the crops which, if it eventuates, may have an impact on pricing in calendar year 2020".
Costa said a natural part of citrus growing included the process of "fruitlets" (which form the fruit), falling off the trees in early summer. The company expects most of the "fruitlets" that fall to be those damaged by hail, with a larger proportion of the undamaged fruit remaining on the trees.
In late October, Costa announced a $176 million capital raise to strengthen its balance sheet as it battled drought and other challenges.
Thursday Nov 7, Shares in Costa closed up 1.5 per cent at $2.79.
7/11/2019 3:40:55 PM 2
The Age reports today
Costa flags hail storm hit as retail raising rolls on
Under pressure fresh food producer Costa Group has suffered another blow, with some of its citrus farms in South Australia being hit by a hail storm on Tuesday.
In a statement to the ASX shortly before the market closed on Thursday, Costa said that the storm could have a $3 million to $4 million impact on its net profit in calendar year 2020.
But the company, which is in the process of raising money from retail shareholders and recently raised $87 million from institutional investors, stressed that this estimate was based only on a preliminary assessment.
It also said it was possible that the storm would have no ultimate financial impact and that its overall portfolio could "counterbalance" any potential adverse impact.
"However, as the recently announced pro-rata entitlement offer is currently in progress, we believe that more fulsome disclosure of indicative information is appropriate at this stage," Costa said.
The company has not changed its 2020 forecast of a net profit of about $56.6 million.
Costa said there would be no impact on its nearly completed 2019 citrus harvest and no impact in 2021 was expected.
However, it said the storm could have "some impact on the quality of some of the crops which, if it eventuates, may have an impact on pricing in calendar year 2020".
Costa said a natural part of citrus growing included the process of "fruitlets" (which form the fruit), falling off the trees in early summer. The company expects most of the "fruitlets" that fall to be those damaged by hail, with a larger proportion of the undamaged fruit remaining on the trees.
In late October, Costa announced a $176 million capital raise to strengthen its balance sheet as it battled drought and other challenges.
Thursday Nov 7, Shares in Costa closed up 1.5 per cent at $2.79.
