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CGC, COSTA GROUP HOLDINGS LIMITED
nipper
post Posted: Feb 27 2017, 03:28 PM
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Costa Group Holdings Ltd (CGC) released 1H17 earnings, announcing a 9.0% revenue increase to $445.6m and a 35.7% increase in NPAT $24.0m.

The result was ahead of expectations and all segments contributed positively with the Berries segment a standout, growing volumes by over 75%.

First half cash flow was very strong and net leverage was reduced 1.0x. FY17 growth guidance was upgraded to 25%.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jan 27 2017, 08:45 AM
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QUOTE
Costa Group chief executive Harry Debney says the company will have access to $300 million to supercharge the growth of its core fruit and vegetable portfolio and its new avocado business through its long-term joint venture with Macquarie Agricultural Funds Management.

"Agricultural companies can be very asset-heavy, which inhibits their ability to grow very quickly ... to really grow rapidly we need some off-balance sheet capacity,'' Mr Debney told The Australian during an investor tour of the company's Tasmanian berry operations this week. "With Macquarie we have access to $300m where they will acquire land, trees and water and we will be the operator of selected assets. What sits on our balance sheet and what doesn't is up for discussion and we will balance that out.''

... Costa Group.... has transformed the way fruit and vegetables are farmed by growing them in glasshouses and galvanised steel tunnels. The company has established a joint venture with California-based Driscoll Strawberry Associates, one of the world's biggest producers of berries, allowing Costa to provide Australian retailers with year-round supplies of blueberries, strawberries, raspberries and blackberries.

Mr Debney said the company was looking at solutions to reduce its labour costs by working with Driscoll on trialling an agri-bot to pick strawberries at one of their farms outside Devonport. All berries are currently hand-picked. But key players are looking to mechanise harvesting as the global agri-bots market is expected to reach $11.1bn by 2020. "We have started the (mechanisation) process with Driscoll using an agri-bot. Our double table top strawberry tunnels, we think, can present the fruit in a better way to be harvested than with other products. We will start the trials this season in Devonport,'' Mr Debney said. "It is a medium to longer term solution. And the same solution has to be found in citrus and mushrooms.'' But he said mechanised harvesting would eventually evolve from a combination of robotics and vision systems. "We really have to nail the selection of what is a ripe fruit of the right quality and then bring via robotics the mechanical process to harvest the fruit," he said.

Costa has recently automated the packing of its blueberries, which has reduced sorting labour in the business by 80 per cent. "The explosion in capabilities with massive computing power on these vision systems gives me some hope that you could replicate that in the field,'' Mr Debney said. "We are now at the stage when we can stop talking and start doing.''

Costa is spending $80m over four years from 2017 to grow its berries division, more than half of which will be spent on blackberries in a bid to replicate the growth it has achieved in its raspberries, where it has become Australia's dominant player.

"We have now got through quarantine some stunning new varieties. If you go to the US now and try the new Driscoll blackberries, I would say you would go for them as your choice on berries. They are very large, sweet and have very good shelf life,'' Mr Debney said. "We have got access over the next 2-3 years to four very high quality varieties. Our plan is to do a blackberry growth story in parallel to what we did with raspberries. It is early days, but I would expect (that), if you go forward four to five years, we will have a blackberry business as big as our raspberry business.''
The Australian http://www.theaustralian.com.au/business/i...34bd5bab2ec22ee



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 5 2016, 03:32 PM
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Costa Group has signed an agreement for the acquisition of the Avocado Ridge orchards and packing operations in central Queensland from the Carney family, the first purchase under a recently announced joint venture between Costa and Macquarie Agricultural Funds Management. Under the agreement, MAFM will purchase the farms and enter into a 20-year lease with Costa to operate them.

QUOTE
"We have a fairly strong growth agenda," said Costa chief executive Harry Debney. "We have a quite a lot of organic growth funded out of cashflow. And we have low debt. But with agricultural companies, to get the full economic value to your shareholders you should use some off-balance sheet capacity as well. "We need a multi-region approach in avocados. Probably most of what we will do in this space will be with Macquarie."

He declined to comment on the purchase price for Avocado Ridge. Last month Costa said it had entered into an exclusive non-binding arrangement with MAFM to "jointly investigate compelling M&A projects in farmland, biological assets, water and infrastructure assets". Mr Debney said the arrangement would give Costa access to "hundreds of millions of dollars" for expansion opportunities....

"Our focus is to be number one in the categories that we operate in where there are opportunities for us to create a genuine market difference and to ultimately achieve a 52-week production situation," Mr Debney said. "We believe avocados are a very strong growth area that fits these criteria."
CGC doing quite well since IPO - Tomatoes, mushrooms, berries, citrus and now Avocados. Domestic and International

OUTLOOK
• Favourable operating environment first four months of FY17.
• Upgrade NPAT before SGARA forecast to at least a 15% increase on FY16 pro forma NPAT - prior to the non-cash impairment against the Company's Polar Fresh investment of $7.4 million.
• Dividends balanced against the Company's need to fund growth objectives and will be in the range of 50 to 70% of NPAT pre SGARA.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: grevillia  
 
nipper
post Posted: Mar 19 2016, 03:35 PM
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Since the IPO last year, what is the nation's biggest listed horticultural stock has done OK, up 27% in the year. Of those in at the IPO, Costa family shareholders control 10.5 per cent and Paine + Partners control 12.4 per cent of Costa Group.

Under the lockup provisions, only 25 per cent of that combined stake is eligible for release — equivalent to 17.9 million shares. so, close to $50m worth of shares emerged from escrow this week Friday. Listing rules prevent a sell-down for another 10 days, setting the stage for a block trade soon. It's understood UBS recently won a mandate to execute the sell-down, heightening expectations the founder's family and the buyout firm will cash in their chips sooner rather than later

The remainder of the stakes held by Mr Costa and Paine + Partners' remains under lockup until the release later this year of Costa's annual results.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
balance
post Posted: Jul 29 2015, 12:15 PM
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In Reply To: mullokintyre's post @ Jul 29 2015, 11:40 AM

G'day Mick, I had no clue who they are, or what they did. I had to look at their website. It may prove to be a good stock. Food / ag stocks don't seem to get a lot of love in Oz until they get taken over.



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Day Trader: Lowest form of life in the known universe.
Shorter: Can limbo under a day trader.
Investor: Salt of the Earth.Sits to the right of God (Warren Buffet)
Share prices are only ever manipulated down.
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I'm 29.
The cheque is in the mail.
 
mullokintyre
post Posted: Jul 29 2015, 11:40 AM
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I got a chunk of these in the offer. Anyone else got interest??
Market has not been kind initially.
looking for some long term growth.
Mick



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ShareScene.com
post Posted: Jul 29 2015, 10:28 AM
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Added by request:

Costa Group Holdings Limited (CGC)

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ShareScene Admin

 
 


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