Shares in agribusiness Costa Group plunged 27.6% on Thursday, wiping $458 million off its value in a single session. The reason was the company lowering its profit forecast for 2019 due to a series of weather-related events.
The challenges included "crumbly" raspberries producing low yields of the berry, unseasonably warm weather affecting demand for mushrooms, high water costs and price competition.
The stock plummeted to close at $3.75, its lowest price for the day and a level not seen since February 2017. Huge volumes of shares changed hands as investors headed for the exits, nearly 33 million, the heaviest since the company was listed in July 2015.
It's not the first time this year Costa has been hit by investors after a trading update. In January when it said had experienced "subdued demand" for some of its products and an earlier finish to the citrus season than expected, Costa's market capitalisation fell $915 million in a day.
Source: smh.com.au