Calavo Growers, Inc., a global avocado-industry leader and provider of value-added fresh food, today reported its financial results for the third quarter ended July 31, 2021.
Third Quarter Highlights
- Total revenue of $285.0 million, a 5% increase from the year-ago quarter.
- Fresh segment revenue was flat year-over-year, and Renaissance Food Group (“RFG”) and Foods segments revenues increased 14% and 12% year-over-year, respectively.
- Gross profit of $7.9 million, or 2.8% of revenue, compared to $30.8 million, or 11.4% of revenue, for the year-ago quarter.
- Net loss of $(13.0) million, or $(0.74) per diluted share, compared to net loss of $(15.6) million, or ($0.89) per diluted share, for the same period last year. Adjusted net loss was $(3.0) million, or $(0.17) per diluted share, compared to adjusted net income of $12.9 million, or $0.73 per share last year.
- Adjusted EBITDA of $1.0 million compared to $22.8 million for the same period last year.
“Our results for the third quarter of this year were adversely impacted by inflationary pressures on labor, raw materials and freight, all of which accelerated as the third quarter progressed. These factors taken together with the delayed summer avocado crops coming from California and Mexico impacted our margins and profitability,” said Steven Hollister, incoming Interim CEO of Calavo Growers. “We are taking the necessary steps to mitigate the current higher cost environment and to navigate the tight labor market and various supply chain issues. While we are managing through challenging times, we are moving forward with the implementation of our strategic initiatives to increase the operating leverage and synergies across our entire organization, and we believe we will emerge as a stronger and more resilient company. The underlying fundamental drivers of our business remain intact, and we remain confident in the opportunities we have to accelerate growth in the years ahead.”
Third Quarter 2021 Consolidated Financial Review
Total revenue for the third quarter 2021 was $285.0 million, compared to $270.4 million for the third quarter 2021, an increase of 5%. The average selling price of avocados in the Company’s Fresh segment was higher by 10% while volumes were 8% lower than the prior-year period due to the delayed start of the summer season in both California and Mexico. Fresh segment sales were flat, while the RFG and Foods business segments each had double-digit sales growth of 14% and 12%, respectively.