Calavo Growers, Inc., a global avocado-industry leader and provider of value-added fresh food, today reported its financial results for the second quarter ended April 30, 2021.
Second Quarter Highlights
Total revenue of $276.8 million, at the high end of guidance and indicating a return to pre-pandemic results. Fresh segment revenue decreased 5%, due primarily to 9% growth in avocado volume, offset by a 10% decrease in avocado prices and 31% lower tomato revenue. Renaissance Food Group (“RFG”) and Foods segments revenues increased 3% and 16% year-over-year, respectively.
Gross profit of $22.6 million, or 8.2% of revenue, compared to $22.1 million, or 7.9% of revenue, for the comparable period last year. The increase in gross profit margin percentage was attributable to volume growth in the Fresh segment.
Net income of $8.8 million, or $0.50 per diluted share, compared to net loss of $3.3 million, or ($0.19) per diluted share, for the comparable period last year. Adjusted net income was $7.7 million, or $0.43 per diluted share, compared to $7.0 million, or $0.40 per share last year.
Adjusted EBITDA of $15.0 million, which is a 9.5% increase compared to $13.7 million for the same period last year.
Adjusted net income and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below.
Second Quarter 2021 Consolidated Financial Review
Total revenue for the second quarter 2021 was $276.8 million, which is comparable to $281.2 million for the second quarter 2020, which included one and one-half months of pre-pandemic impact. While avocado volumes were 9% higher than the prior-year period, total revenue was impacted by the lower average selling price of avocados in the Company’s Fresh segment, which resulted from increased supply from Mexico. Fresh segment sales decreased 5% and offset higher sales volumes in the RFG and Foods business segments.
Gross profit for the second quarter was $22.6 million, or 8.2% of revenue, compared to $22.1 million, or 7.9% of revenue, for the same period last year. The increase in gross profit margin percentage was attributable to improvements in the Fresh segment, partially offset by lower gross profit margin percentages in the RFG and Foods segments.