Costa Group share price rises after Vitalharvest bushfire update

The Costa Group Holdings Ltd (ASX:CGC) share price is pushing higher on Friday after a bushfire update from its landlord Vitalharvest Freehold Trust (ASX:VTH)…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Costa Group Holdings Ltd (ASX: CGC) share price is on course to end the week on a positive note.

In morning trade the horticulture company climbed 2% to $2.56 following a bushfire update from its landlord Vitalharvest Freehold Trust (ASX: VTH).

What was announced?

This morning Vitalharvest provided an update on the impact that the bushfires have had on its berry portfolio. This portfolio is leased exclusively to Costa Group.

According to the release, the bushfires that are currently burning in southern New South Wales have impacted the Tumbarumba berry farm. This farm accounts for around 6% of Vitalharvest's berry plantings.

Management advised that the Dunns Road fire, which the NSW Rural Fire Service says has burnt over 130,000ha of land, has damaged the packing shed at the Tumbarumba berry farm. However, it believes the plants have not been materially impacted.

Assets owned by Costa Group, including the packing equipment and several vehicles, have also been damaged.

Though, as Costa and its staff successfully conducted a full site evacuation prior to the impact from the fire front and access is limited, a full assessment of the damage will not be completed until the region is safe.

Vitalharvest advised that it will be working closely with Costa Group to assess the damage and provide further updates when required.

Other bushfire updates.

Vitalharvest and Costa Group are not the only ones providing updates on the impact of the bushfires on Friday.

This morning insurance giant Insurance Australia Group Ltd (ASX: IAG) revealed that, as of yesterday, it had received over 2,800 bushfire-related claims since the beginning of September.

Due to this and severe hailstorm events in Queensland and New Zealand in November, it expects its net natural peril claim costs for the six months ending December 31 to be approximately $400 million post-quota share. This compares to its perils allowance of $320 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Insurance Australia Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX just snapped a three-day losing streak.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Cogstate, DroneShield, Premier Investments, and South32 shares are storming higher

These shares are having a strong session on Thursday. But why?

Read more »

three men stand on a winner's podium with medals around their necks with their hands raised in triumph.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another red day on the markets this Wednesday.

Read more »

Multiracial happy young people stacking hands outside - University students hugging in college campus - Youth community concept with guys and girls standing together supporting each other.
Share Gainers

Why 4DMedical and these ASX shares are up 200%+ in just a year

These shares have made their shareholders wealthy over the past year.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Evolution Mining, Lynas Rare Earths, Paladin Energy, and Sovereign Metals shares are racing higher today

These shares are having a good session on hump day. But why?

Read more »

A young well-dressed couple at a luxury resort celebrate successful life choices.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors kept up the selling this session.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough start to the week for investors.

Read more »

Beautiful young woman drinking fresh orange juice in kitchen.
Share Gainers

Why Catalyst Metals, Lynas, Polynovo, and St George Mining shares are pushing higher today

These shares are starting the week with a bang. But why?

Read more »