Calavo Growers reports record fourth quarter income
Calavo Growers, headquartered in Santa Paula, reported record fourth quarter revenues of $247.7 million and net income of $9.2 million, almost double its net income for the same period last year.
Earnings climbed to 53 cents per diluted share for the quarter ended Oct. 31, compared to 28 cents for the fourth quarter 2015, bringing the avocado and fresh food producer to $2.18 per share for the year, according to the Dec. 20 statement.
The growth came in large part from the Fresh segment of the business, which reported a 24 percent increase in fourth quarter revenues, to $143.4 million.
Calavo expects double digit growth in the segment in 2017, with the opening of its packinghouse in Jalisco, Mexico, said CEO Lee Cole, as well as growth in its RFG segment following $35 million of investment in manufacturing space over the past 15 months.
“Infrastructure investments that have been made are starting to pay off and the business is experiencing solid growth,” Cole said of food delivery company FreshRealm, in which Calavo holds 46 percent ownership. “We believe FreshRealm is at the early stages of an exciting period, and they are expecting meaningful revenue growth and new customer penetration in 2017.”
Full-year revenues grew 9 percent from $856.8 million to $935.7 million, for a net income of $38 million, a 40 percent increase over 2015, despite more than $4 million in costs related to the additional distribution facilities.
Gross margin grew from $85.2 million last fiscal year to $107.5 million in 2016, or 11.5 percent of total revenues, and operating income increased 39 percent over 2015, to $61.1 million. The company reported cash and cash equivalents of $13.8 million.
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