Australia-based Costa Group is looking for more acquisitions in the citrus sector, calling expansion in the category a “priority”.

The publicly-listed, fresh-produce supplier wants to up its citrus production and is investing in packing.

“Today, the company announces it is actively engaged in a citrus acquisition programme to increase its Sunraysia citrus footprint to at least 700 hectares over calendar year 2021,” Costa CEO Henry Debney said, referring to the citrus-growing region that spans north-west Victoria and south-west New South Wales. “To support this expansion, we have also commenced planning for development of a large-scale packing facility to be sited in Mildura, signalling how much of a priority the Sunraysia region is with respect to our citrus growth plans.”

Costa has acquired net sites in the Riverland region of another state, South Australia, to "undertake extensive high-density netted citrus plantings" during 2021, the company said today (22 February) in a stock-exchange filing. "These properties will host the most progressive citrus growing techniques across the citrus category."

The news of Costa's M&A strategy came alongside the company's full-year financial results. The company, which counts citrus as one of five "core categories" alongside berries, mushrooms, glasshouse tomatoes and avocados, generated an 11.2% rise in revenue to AUD1.16bn (US$916.1m) during the year to 27 December. The group swung from a loss of AUD36.1m a year ago to a profit of AUD60.8m. Excluding "material items", Costa's net profit after tax was 39.9% higher at AUD60.8m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Costa is the largest supplier of fresh produce to Australia's major grocers. As well as Australia, it has farming operations in China and Morocco.