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Calavo reports net loss, revenue decline

By   /   Wednesday, September 9th, 2020  /   No Comments

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Calavo Growers reported a 24.7 percent decline in revenue and a net loss of $15.6 million, or 89 cents per share, for its fiscal third quarter, as it adapted to lower avocado prices and took a loss on its investment in FreshRealm, its meal-kit delivery venture.

Calavo, based in Santa Paula, said total revenue for the quarter ended July 31 was $270.4 million, as lower avocado prices offset a jump in volume. Revenue dropped in its Renaissance Food Group and other prepared food segments. The net loss mainly reflected a $37.2 million on-cash charge related to a note receivable from FreshRealm and its investment in the Ventura-based company.

Excluding the loss and some tax adjustments, Calavo earned $12.9 million, or 73 cents per share. Earnings before depreciation, interest and other charges were $23.1 million for the quarter compared to $26.6 million a year earlier.

Calavo’s stock jumped about 5 percent after the earnings report, topping $64 in morning trading on Sept. 9 after closing at $59.55 the day before.

Along with the Sept. 8 earnings announcement, Calavo named longtime food industry advisor Farha Aslam to its board of directors as board members Dorcas Thille and Egidio Carbone said they will not stand for re-election after the 2021 board meeting. Aslam is founder and managing partner at Crescent House Capital, an investment and strategic advisory service.

On Aug. 13, Calavo announced the promotion of Mark Lodge to chief operations officer and Robert Wedin to executive vice president for its fresh food operations.

“We continued to execute with resilience and resolve in the face of a prolonged pandemic while prioritizing the health and safety of our team and customers,” Calavo CEO said James E. Gibson said in a company statement.

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