Australian produce company Costa Group has reported a strong first half with EBITDA growing 31.9 per cent to A$39.3m in the first half of FY2016 to 27 December 2015.
Revenue across its produce categories grew 18.9 per cent, with strong yields across its core product lines.
Diversified plantations and investments in protected cropping covered the shortfall from hailstorms at its Corindi blueberry farms, while strong raspberry yields were coupled with growing consumer demand.
Costa’s citrus yields and quality were high, with exports supported by a low Australia dollar, while Costa’ mushroom business saw improvements in yield as well.
Challenges arose in the first six months of the year from weak banana pricing less consumer demand in the banana category, as well as oversupply and sluggish sales in the tomato category.
Costa expects its sales to exceed A$1bn in FY2016 for the first time.
“Due to seasonality, growth project timing and international operations, performance will be more heavily weighted to the second half and, as noted, our domestic and international pipeline of growth projects are progressing to plan,” said Costa CEO Harry Debney.