Santa Paula-based Calavo Growers roared out of the gate with a profit of $5.3 million in its fiscal 2015 first quarter, according to a release from the company. The company’s shares jumped nearly 6.5 percent to $45.05 at the market’s close.
After recording a $1.8 million loss in the same period last year, Calavo appears back on track. The company’s revenue also shot up 15.8 percent to $194.8 million, compared to the $168.2 million it reported for the first quarter of 2014.
While the release states that the firm’s operating expenses increased due the companies acquisition of Renaissance Food Group, company CEO Lee Cole reaffirmed Calavo’s forecast for record revenues and and earnings per share in 2015.
“ … [I]ncreased selling, general and administrative expense in the RFG business segment constrained a Calavo bottom line that otherwise would have been even greater,” Cole said in the release. “The higher RFG costs for [selling, general and administrative expenses] relate to investment in business-development and capacity-building initiatives which we expect to generate incremental revenue and profit contribution later this year.”
With refrigerated and packaged foods the fastest growing segment of the grocery industry, Cole said the company expects RFG revenues to continue growing at a 20 percent rate.
“We started fiscal 2015 squarely on plan,” Cole said in the release.