Costa

The market was evidently not expecting overmuch out of CGC, ahead of the AGM.

There were no big capex or opex blow-outs associated with COVID or supply chains. Compared to peers there was scarcely a mention, and what costs are mentioned, were expected to be broadly similar to last year.

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So no surprise downgrades due to supply or energy costs are clearly the positive takeaway for the market.

In addition, not getting arduous rental revaluations by new owners (Macquarie) was well-received, perhaps, by a market worried that excessive rents would eat into returns.

The stock is up strongly today. We own it in our concentrated portfolio, pleasingly, which has a higher return and risk threshold.

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Please note that past performance is not a reliable indicator of future performance.

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