Calavo Growers, Inc., a global company in the avocado industry and provider of value-added fresh food, has reported financial results for the fiscal first quarter ended January 31, 2025.
Total net sales reached $154.4 million, a 21.0% increase from the prior year quarter. Fresh segment sales rose by $26.8 million, or 23.7%, driven largely by higher average pricing.
Gross profit totaled $15.7 million, up 46.2% compared to the same period last year. The Fresh segment contributed $12.1 million to gross profit—an 88.8% increase—while the Prepared segment gross profit declined by 17.1% to $3.6 million. Improved avocado margins, supported by stronger prices and lower fruit costs, contributed to overall profitability.
Selling, general, and administrative (SG&A) expenses were reduced to $10.3 million, down 23.6% from the prior-year quarter, as part of Calavo's ongoing cost discipline.
Net income from continuing operations was $4.4 million, or $0.25 per diluted share, a turnaround from the $2.6 million net loss ($0.15 per diluted share) in the previous year. Adjusted net income came in at $5.9 million, or $0.33 per diluted share, compared to an adjusted net loss of $1.4 million, or $0.08 per share. Adjusted EBITDA increased substantially to $9.3 million, up from $3.1 million.
As part of its ASC 280 financial reporting, Calavo has renamed its "Grown" segment to "Fresh" to better reflect the nature of its business. This name change does not alter the segment's composition or financial reporting.
Calavo also updated its methodology for calculating Adjusted Net Income and Adjusted EBITDA, now excluding income (loss) from unconsolidated entities to better align with industry practices. These changes do not affect previously reported GAAP results.
Fresh segment performance was driven by a 30.5% increase in average price per carton, which more than offset a 4.6% decline in volume. The Prepared segment saw a 7.3% increase in volume, but this was largely offset by a decrease in average selling prices per pound.
The company continues to cooperate fully with ongoing investigations by the SEC and DOJ related to the Foreign Corrupt Practices Act (FCPA). However, following Executive Orders issued in February 2025 and a memo from the Attorney General, the SEC notified Calavo that activity on the investigation has been postponed. The company does not anticipate any near-term action that would materially affect its financial outlook.
Calavo's Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on April 29, 2025, to shareholders of record on April 1, 2025.
After the quarter ended, Calavo secured a VAT refund of 13.7 million Mexican pesos (approximately $0.7 million) from Mexican tax authorities for March 2019. The refund, obtained without court intervention, strengthens Calavo's tax strategy and boosts momentum in recovering additional outstanding refunds.
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For more information:
Julie Kegley
Calavo Growers
Tel: +1 310 622 8246
Email: calavo@finprofiles.com
www.ir.calavo.com