Calavo Growers, Inc., a global avocado provider, has reported its financial results for the fiscal third quarter ended July 31, 2023.
Third quarter financial overview
- Total net sales of $259.9 million, a 24% decrease from the prior year quarter
- Grown segment net sales decreased 30% to $144.5 million
- Prepared segment net sales decreased 14% to $115.8 million
- Gross profit of $25.0 million, compared to $18.5 million for the prior year quarter
- Grown segment gross profit increased $9.6 million to $21.4 million
- Prepared segment gross profit decreased $3.1 million to $3.7 million
- Net income of $6.6 million, or $0.37 per diluted share, compared to $1.3 million, or $0.07 per diluted share, for the same period last year
- Adjusted net income of $7.2 million, or $0.41 per diluted share, compared to adjusted net income of $2.9 million, or $0.16 per diluted share for the prior year quarter
- Adjusted EBITDA of $13.8 million compared to $8.1 million for the same period last year
Third quarter highlights
- Avocado margins meaningfully improved sequentially and versus the prior year quarter
- Established new credit facility with borrowing capacity of up to $100 million to improve liquidity and financial flexibility
- Onboarded new customer volume in Prepared with approximately $0.7 million of start-up costs in the quarter; expect sequential improvement in Prepared in fourth quarter
- The Board of Directors declared a quarterly cash dividend of $0.10 per share to be paid on Oct. 11, 2023 to investors of record on Sept. 27, 2023
Management commentary
“I am pleased with our performance in the third quarter. We achieved strong avocado margins as we concentrated our efforts on the fundamentals of our flagship avocado business,” said Lee E. Cole, President and Chief Executive Officer of Calavo Growers, Inc.
“Our Prepared segment earnings improved sequentially versus the second quarter as we onboarded new customer volume in Fresh Cut, despite some start-up costs. Our Guacamole business continues to perform well with lower fruit input costs and improved manufacturing efficiency. We expect earnings in Prepared to continue improving in the fourth quarter as we focus on adding volume and making our operations more efficient,” said Cole.
“I am happy to be back at Calavo, leading the company that I helped to build. Going forward, we will remain focused on execution across the portfolio, and we remain confident in the long-term earnings potential of the company.”
For more information: Calavo Growers, Inc Santa Paula, California, USA
Website: calavo.com