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Costa Group share price rises after Vitalharvest bushfire update

James Mickleboro
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The Costa Group Holdings Ltd (ASX: CGC) share price is on course to end the week on a positive note.

In morning trade the horticulture company climbed 2% to $2.56 following a bushfire update from its landlord Vitalharvest Freehold Trust (ASX: VTH).

What was announced?

This morning Vitalharvest provided an update on the impact that the bushfires have had on its berry portfolio. This portfolio is leased exclusively to Costa Group.

According to the release, the bushfires that are currently burning in southern New South Wales have impacted the Tumbarumba berry farm. This farm accounts for around 6% of Vitalharvest’s berry plantings.

Management advised that the Dunns Road fire, which the NSW Rural Fire Service says has burnt over 130,000ha of land, has damaged the packing shed at the Tumbarumba berry farm. However, it believes the plants have not been materially impacted.

Assets owned by Costa Group, including the packing equipment and several vehicles, have also been damaged.

Though, as Costa and its staff successfully conducted a full site evacuation prior to the impact from the fire front and access is limited, a full assessment of the damage will not be completed until the region is safe.

Vitalharvest advised that it will be working closely with Costa Group to assess the damage and provide further updates when required.

Other bushfire updates.

Vitalharvest and Costa Group are not the only ones providing updates on the impact of the bushfires on Friday.

This morning insurance giant Insurance Australia Group Ltd (ASX: IAG) revealed that, as of yesterday, it had received over 2,800 bushfire-related claims since the beginning of September.

Due to this and severe hailstorm events in Queensland and New Zealand in November, it expects its net natural peril claim costs for the six months ending December 31 to be approximately $400 million post-quota share. This compares to its perils allowance of $320 million.

The post Costa Group share price rises after Vitalharvest bushfire update appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Insurance Australia Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020