Costa founder 'comfortable' as fruit and vegetable giant hits pause

Costa founder 'comfortable' as fruit and vegetable giant hits pause

By Darren Gray October 23, 2019 — 11.48pm

Fruit and vegetable kingj Frank Costa says the country's biggest grower and packer of fresh fruit and vegetables, Costa Group, has the right products and people and needs to stay the course as it deals with typical horticultural challenges, including weaker prices.His comments came as Costa shares entered a five-day voluntary suspension from trading, and amid market speculation that the growing company could be considering an equity raising.Frank Costa and his extended family are significant shareholders in Costa Group.

"I'm very comfortable with where the company sits, I'm very comfortable with its management, I'm very comfortable with the products that we're actually involved in that we're growing. And it's only just a matter of staying the course," he said.

Mr Costa and his extended family are significant shareholders in Costa Group and he is considered the founder of the modern version of the business. He retired from Costa's board in July this year, but remains an adviser to it.

Costa shares entered a five day voluntary suspension from trading on Wednesday as the company pondered a trading update to be released to the market.The update is expected to be negative, and could be the company's fourth profit warning in what has been a challenging year.

I'm very comfortable with where the company sits, I'm very comfortable with its management, I'm very comfortable with the products.

Frank Costa, significant shareholder in Costa Group

But in an interview with The Age and Sydney Morning Herald, Mr Costa expressed full confidence in the Costa Group business and its future."I've really got no concerns. The company is well managed, we've got good people everywhere," he said.

”Our company is in a pretty good position to come out of it very well," he said.

Mr Costa said mushroom prices had been lower than expected across Australia for a lengthy period, and a bumper blueberry season had meant supply exceeded demand, pushing prices down "very low".The fresh produce heavyweight, which listed on the ASX in 2015, is a major supplier of fruit and vegetables to Coles, Woolworths and Aldi.