The share price of Costa Group Holdings Ltd (ASX: CGC) is in the red after the announced retirement of Frank Costa.
The Costa share price is down 1%, although it was down further earlier, as Frank Costa announced his retirement from the Costa Group Holdings board after previously stepping down from an active executive role in recent years.
Mr Costa will still play a presence in the company's growth as an advisor to the Costa board.
The Costa chairman, Neil Chatfield, acknowledged that Mr Costa has given an enormous contribution to the company and commented that the company has been extremely fortunate to have his counsel and experience to guide the company as it evolved.
Chairman Chatfield said "On behalf of the board, I want to sincerely thank Frank for his invaluable contribution to the board and we are delighted Frank has accepted a role as advisor to the board. We are grateful that he is prepared to continue to devote his time to provide ongoing support and guidance to the company."
How will this affect Costa Group?
Obviously Mr Costa has played an utterly integral role in the Costa growth journey, but his involvement is not what it once was.
Costa will still be able to ask him for advice in his role as an advisor to the board.
The most meaningful thing for Costa's earnings in the future is the price that it achieves for its produce and the actions it takes to grow profit in the coming years. I'm quite interested in Costa shares at this low price, but it's hard to say what the earnings will be with how cyclical some factors can be.
