Fresh food producer Costa Group’s share price has been bruised,with bad weather afflicting damage to its orange crops.Credit: iStock
After the stock fell by more than 12 per cent,trading was paused for exactly three hours. It lifted at 2:56pm AEST after Costa issued a market update outlining damage to its citrus crop.
“Some quality issues have been encountered due to weather events occurring over recent weeks,” the company said the statement.
“Certain varieties have been affected,and at this stage of the harvest this has resulted in a lower percentage of first grade product versus the prior year.”
Demand for Riverland,Sunraysia and Navel crops have remained strong despite high pricing,but Navel oranges have suffered the most damage,Costa said.
“Weather events have also resulted in some quality issues which have become evident as the season has progressed,most notably with Navels,and more so in Sunraysia than the Riverland. This has impacted pack out rates versus the prior year.”
The company will not know the full extent of the weather damage’s impact on its prices and earnings until the “citrus season is further progressed”.
Costa Group shares ended the day 8 per cent lower at $2.65.