Costa does not expect any further material impact from recent heavy rainfalls experienced across the country, but said that further damage is possible if extreme adverse weather continues.

This follows very heavy rainfall and flooding in Tasmania, Victoria and New South Wales.
 
Weather conditions had previously hit the company's citrus business.

"Adverse weather conditions, including both higher rainfall and cooler temperatures, have persisted. Despite harvest volumes being in line with budget, the previously reported lower quality levels across all citrus regions have continued, which has resulted in considerably lower pack-outs, as well as reduced volumes of first grade fruit for export. The market demand and pricing in our export destinations remains very strong, which augurs well for the 2023 season," said Costa in a trading update.

Costa said full-year earnings before interest, tax, depreciation and amortisation for its citrus category would be considerably lower than previously forecast.

"The balance of the portfolio continues to perform in line with expected levels in berries, tomatoes and mushrooms, as well as a strong calendar year 2022 result from the international business unit. The avocado category in the second half is benefiting from improved pricing, which should deliver a modest gain from previous levels."
It said the Queensland citrus crop had been harvested and packed.

The Bureau of Meteorology on Monday afternoon forecast further heavy weather. Dry conditions will be short-lived, as widespread rain and storms are forecast across eastern Australia later this week.

Source - https://www.freshplaza.com