Australia's Costa Group removes guidance despite "robust trading"
Uncertainty regarding the duration and impact of the Covid-19 pandemic has forced Australia's Costa Group to remove its financial guidance for 2020 despite a good start to the year.
The country's largest produce company said in an April 16 update that it had experienced "a robust trading performance year to date". Costa has performed above budget for the first financial quarter in 2020 and significantly ahead of Q1 last year, it said.
"Current trading remains positive overall whilst noting some supply chain and market volatility exists across the different product segments of the portfolio," Costa said.
However, it said it's not possible to provide meaningful forward financial forecasting with any reliable accuracy due to the "current high level of uncertainty and volatility in the social and economic environment generally".
"While we were initially hopeful of a relatively quick economic and business recovery in Australia and internationally, in recent days it has become clear that restrictions, and the impacts from them, will continue for longer than initially
hoped and will vary significantly in the different markets for our products," Costa said.
"Accordingly, the ongoing uncertainty regarding the extent, duration and potential impact of future government restrictions relating to COVID-19 both in Australia and internationally significantly hampers our ability to provide
reliable and accurate forecasting.
"On that basis, and although the company has made a very positive start to the year, it is appropriate that Costa withdraws its previous guidance for the 2020 financial year."