Fresh produce powerhouse Costa CEO in shock exit

Australia’s largest fresh produce grower Costa Group has announced the sudden departure of its chief executive Sean Hallahan, who will step down from his position immediately.

Hallahan had been a senior executive at Costa for five years, and was anointed company chief executive officer and managing director in March 2021.

“Reaching my decision has been a process and there are several things that have gone into my decision,” he said in a statement. “It has been an intense couple of years in agriculture made even more challenging with the overlay of the COVID-19 pandemic.”

Costa chairman Neil Chatfield praised Hallahan’s performance in delivering strong company results while managing the impacts of the pandemic and extreme weather conditions, and thanked him for his contribution to the company.

Rain bombs across Australia’s east coast have inflicted significant damage to Costa’s orange crops and its share price, while the nation’s avocado glut has also bruised Costa’s avocado business.

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Costa Group’s underlying net profits rose by 10.8 per cent to $49.2 million in the first half of 2022, while total revenue rose 15.7 per cent to $708.7 million compared with the first half of 2021.

However, its avocado business has been unprofitable for years: an oversupply of the ‘green gold’ has led to a fall in prices that saw Costa Group’s avocado business revenue slide 16.4 per cent, suffering a non-cash $2.2 million goodwill impairment as a result.

“We understand that the last two years, particularly in Victoria, have taken a large toll on the business and personal lives of individuals,” Chatfield said.