Calavo Growers reports highest quarterly net income in company history
Calavo Growers had its highest quarterly net income and gross profits ever, the company announced in a second quarter earnings report June 6, with earnings per diluted share of 56 cents.
That beat the average estimate of analysts surveyed by Zacks Investment Research, which was for earnings of 50 cents per share.
The Santa Paula-based company earned $9.7 million during the quarter, up 14.4 percent over the previous year, and $16 million year-to-date, a 16.5 percent jump. Revenues fell slightly from $221.6 million during the same period last year to $220.3 million this year.
A strong performance by its FreshRealm and Calavo Foods branches drove the growth, said CEO and Chairman Lee Cole. Sales of fresh avocados rose 16 percent despite falling prices, and subsidiary Renaissance Food Group grew around 15 percent.
Revenues for the year currently total $424.9 million and operating income grew 18.5 percent to $25.2 million.
Looking toward the current fiscal quarter, Cole said he expects continued double digits in gross margins. A new packinghouse in Jalisco, Mexico is expected to receive government approval to begin exporting avocados to the U.S.
“Calavo enters the fiscal third quarter in a very favorable position both operationally and financially,” he said, later adding that “as our substantial capital investment in Jalisco signifies, the company is committed to building a strong operating base in this dynamic growing region.”
FreshRealm, created by Calavo in 2014, “is exhibiting consistent month-over-month growth” as the home-delivery meal kit industry becomes increasing popular with consumers, Cole said.
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