Costa (CGC) FY19 Result $2.86
Out this morning and looks solid v low expectations. Revenue was slightly above at $1.048bn versus $1.025bn expected, with revenue growth coming in at 5.8% versus 2.33% expected = good. While profit was low relative to sales coming in at $28.4m, it was above expectations of $27m, with analysts range being $24-28m, so a beat to the most bullish analyst on the street.
A big concern from the market of late has been net debt which was also lower than prior forecasts, and the company spoke of improving conditions thanks to sustained rain and better pricing for most of their lines. They went on to say pricing levels improved ‘considerably’ after being forced to downgrade earnings multiple times over the past few years. They declared a token 2cps dividend as expected.
In terms of coronavirus, they say no impact as yet, although they’re monitoring the situation carefully – global supply chains the main potential issue here. All in all, a good result from CGC after a tough year.