Costa increases profit guidance

Andrew Stanley

Ralton Asset Management Limited

Shares in horticultural company, Costa Group (ASX:CGC), rallied after the company announced both an increase in profit guidance for the current year and a $65m expansion of its mushroom farm at Minarto in South Australia.

Costa is already the number one player in the Australian mushroom category and this expansion will further consolidate its position and allow Costa to participate in future consumption growth. Costa’s basket of produce includes avocados, blueberries, raspberries, mushrooms and tomatoes and aligns with our thematic views in regard to ‘premium’ food categories and healthy eating.

Costa has several growth avenues, including capacity expansions for most of the categories just listed, together with further acquisitions in the fast-growing avocado segment and finally, offshore growth via its berry farms in both Morocco and China. (VIEW LINK)


Head of Australian Equities
Ralton Asset Management Limited

Andrew has been with Ralton since its inception in 2006 and leads the investment management of Ralton’s managed accounts. He brings over 25 years of funds management and investment banking experience having held senior positions with major...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.