Net results for Calavo increased despite large volume of avocados

The large volume of avocados that arrived on the market in recent months can be seen reflected in the figures of Calavo Growers across the third quarter of the fiscal year. Despite prices on the fresh market being lower than last year, the American company managed to increase their income. This was mostly due to the processed avocado products.

Across the third quarter, the company reported a turnover of 296.4 million dollar. This was 2% lower than the record turnover of 301.6 million dollar over the third quarter of 2017. The gross profit is at 33.1 million dollar, which amounts to 11.2% of their turnover. The operational income increased by 58% to 19.2 million dollar (2017: 12.2 million dollar). The net income increased by 40% and amounted to 12.4 million dollar. On a comparable basis, the company reports an increase of 71% in net income.

“Calavo once again reports a strong third quarter,” according to Lee E. Cole, Chairman and CEO. “I’m particularly happy with the excellent operational results in each of the three segments.” In the fresh avocado segment, the large volumes play their part in performances. Eighteen per cent more volume was sold than in the same period last year. “Although consumption was considerably higher, the larger availability of the fruit resulted in a lower price in the entire sector compared to last year, which had an effect on the increase in turnover in the past quarter.” Turnover amounted to 149.8 million dollar (2017: 16.9 million dollar). The gross profit percentage remained stable at 10%.

The Renaissance Food Group, the segment that includes cooled fresh avocado products, reported a growth of 8% in sales, and a 46% higher gross profit. “The segment continued to develop during the quarter, with a deeper market penetration and a more extensive portfolio of innovative products. The increase in turnover would have been higher if there hadn’t been a major recall of melons.” Calavo Foods contributed considerably to better performances with an increase in turnover of 25%. The segment supplies processed avocado products to retail and food service.

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