Horticultural company, Costa Group (ASX:CGC), was a stand-out performer during the quarter with the fruit and vegetable grower producing a stellar interim result, which was applauded by the market.
The well-regarded management team delivered a trifecta of positives in its update, beating market earnings expectations, displaying strong cash flow and upgrading full-year earnings guidance. Impressively, the earnings beat was delivered right across CGC’s portfolio of market-leading categories. Combined with CGC’s recent move into avocados, the growth profile for the business is robust.
CGC is approaching our valuation which has led us to reduce our position as we are mindful there are still some agricultural and pricing risks associated with the stock and that recent growing conditions in all product categories (outside of Tasmanian berries) have been extremely favourable. (VIEW LINK)