Investor Presentaiton
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Group trading update 1HCY21 (continued)
Capex, debt and growth update
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Acquisitions undertaken during the half included the Sunraysia located KW Orchards citrus farm and associated packing operations (acquired March
2021). The KW acquisition increases our citrus footprint in Sunraysia to 700 planted hectares.
The company also signed an agreement to acquire the assets of Select Fresh, a leading Western Australian based wholesale distribution business
specialising in the supply of fresh produce to foodservice and independent supermarkets.
The acquisition is expected to be completed in July 2021 and will be run under the Costa Farms and Logistics (CF&L) business unit. It expands our
CF&L offering into Western Australia, increases our supplier grower base and provides a strong platform to extend our supply relationship with National
customers particularly in the catering & meal kit segments. Further updates on existing growth projects will be reported at the half year results release in
August 2021.
Debt levels continued to be consistent with the company's target gearing range of between 1.5 to 2 times EBITDA-SL. The Company expects net debt
(excluding lease liabilities) at 30 June 2021 to be approximately $211 million, which represents an approximate leverage ratio of 1.4x. The increase in
net debt from $143.9 million at 27 December 2020 reflects the previously announced acquisition of KW Orchards, maintenance capex back to pre
COVID levels, seasonality of working capital and execution of previously announced growth projects including tomato glasshouse four and China berry
plant development.
Costa Group Holdings Limited
African Blue
Morocco's Best Bluebe
Only the Finest Berries"
Driscoll's Kalady fingers
LOVACADO.
Aussie avos. From Costa.
MUSH
BOOM!
TO THE
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
RESCUE
Perino Vitor
AUSTRALIA'S BEST
itor
AUSTRALIA'S BEST
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