The Costa Group Ltd (ASX: CGC) share price is down 23% to $4 this morning after the fruit, berries, tomato, mushroom and avocado grower warned its FY 2019 adjusted net profit would come in between $57 million to $66 million, which is lower than previously forecast and the second profit downgrade Costa has issued this financial year.
In fact Costa shareholders might want to look away now.
Source: Google Finance, May 30
As we can see the shares are now down 45% in just six months, although that doesn't mean Costa is a bad business, it's just that its management team's forecasts were way off the mark.
Evidently profit forecasting for a global fruit and vegetable grower is a difficult task and the market's confidence in the business will now be hard to win back. It also carries net debt of $244.6 million, which may put other investors off.
