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Aussies eat well grown from Costa (ASX:CGC)

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Costa Group Holdings (CGC)

Berries, Citrus, Mushrooms, Avocados, Tomatoes are definitely not going anywhere, except to the mouth. My favorites are berries and avocados, for taste and investment.


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PEOPLE NEED TO EAT!

Costa are large producers of all these above-mentioned foods. They are Australia’s leading horticultural company and is the largest fresh produce suppliers to the major Australian food retailers. It’s quite a niche play.

They are also scaling globally through licensing to countries like China, Morocco and the US. The Costa business model is built on the optimization of a portfolio of integrated farming, packing and marketing activities.

They recently appointed a new CEO, which will only take place next year. The Costa board believes that Sean Hallahan is ideally placed to build on this, continue the solid performance of the business, and develop exciting growth opportunities for the company into the future.

The company believes that they have a history of growing and marketing industry leading products with a focus on investing in sustainable commercial framing and innovation, which sustains their growth in genetics-based product categories.

Fundamentals

The agricultural industry is definitely ripe for innovation and disruption in various ways. It is still a small cap on the ASX, with a market cap of A$1.59 Billion, so you still need to be brave.

  • They have a dividend yield of 1.51%, so you can expect small dividends.
  • Share price: A$3.97
  • Year-to-Date performance: +58%

It is still a smallish company, so it has some risks, but it has a lot of potential. If you look at the share price graph over the past few years, it looks like it is starting to recover nice and gently.

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Informed decisions

I’ll be looking to add a very small position in Costa and watch them closely over the next few month and years. If they manage to scale up production as well as their global footprint, I’d be a happy shareholder.

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Higgo van Biljon

Easy user, Founder & CEO FinMeUp 

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Higgo van Biljon, Founder and Chief Executive Officer of FinMeUp as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.

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