The Costa Group Holdings Ltd (ASX: CGC) share price climbed 4.4% today after the fruit and vegetable grower reported its financial results for the half-year ending December 31 2018.
Costa delivered an adjusted net profit before one off items and other accounting costs of $8.5 million on revenue of $478 million, which were down 2.4% and 89% respectively on the prior corresponding period.
The group is switching to a calendar year reporting period to better reflect the seasonality of its fruit and vegetable growing operations as it recently expanded into blueberries, alongside the likes of its core citrus, tomato, avocado and mushroom products.
Back on January 10 2019 Costa lost more than 40% of its value in a single trading session after it warned that it expects flat profit growth for the year to June 30 2019 on the back off weaker demand for its berries and avocados, alongside some delays in upgrading a mushroom facility.
As a result of the warning the stock fell from $7.37 to close at $4.51, but has since climbed back to $5.43 today as investors welcome today's news that market conditions have not weakened further.
Costa will pay a 5 cents per share dividend to eligible shareholders on April 12 2019.
Others in the agricultural space include Webster Limited (ASX: WEB) and takeover target Graincorp Ltd (ASX: GNC).
