Costa (CGC) bests low expectations
Costa Group (CGC) +11.82%
CGC is a December year end so Friday was their 1H results. The rhetoric being the most optimistic I’ve heard in a few years, although in fairness, the bar was set low. Revenue of $612.4m was as expected however profit for the half was stronger by a decent margin. Market expectations for the full year were sitting at profit of $52.1m & CGC delivered $45.8m for the half. They do have a big 1H skew in terms of their earnings – normally around 80/20 and that is obvious in these numbers, however given the commentary about momentum for the second half and the problems around drought, water, crop issues and the like being fixed. I was expecting we’ll see decent upgrades on this one and being a cyclical business with a lot of leverage in it, this one could run hard post this result. The 11% gain today is nice, but likely more to come in our view.
Costs Group (CGC) Chart
