Calavo Growers, Inc, a global avocado-industry leader and provider of convenient, ready-to-eat fresh food, today reported its financial results for the fiscal first quarter ended January 31, 2023.
First quarter financial overview
- Total revenue of $226.2 million, an 18% decline from prior year
- Grown segment revenue decreased 27% year-over-year to $117.7 million
- Prepared segment revenue decreased 3% year-over-year to $108.5 million
- Gross profit of $14.4 million, compared to $13.2 million for the year-ago quarterGrown segment gross profit decreased $2.2 million from prior year to $9.5 million
- Prepared segment gross profit increased $3.4 million from prior year to $5.0 million
- Net loss of $(3.1) million, or $(0.17) per diluted share, compared to net loss of $(4.0) million, or $(0.23) per diluted share, for the same period last year
- Adjusted net loss of $(1.4) million, or $(0.08) per diluted share, compared to adjusted net loss of $(0.4) million, or $(0.02) per diluted share for the year-ago quarter
- Adjusted EBITDA of $3.6 million compared to $4.7 million for the same period last year
First Quarter Highlights
- Achieved year over year improvement in Prepared segment results despite weather challenges
- Implemented first phase of new transportation management system that enables RFPs on most outsourced freight; will be fully implemented in second quarter
- Finalized latest initiatives to streamline operations and improve performance
Management Commentary
“Our first quarter results were impacted by challenging market conditions in both the Grown and Prepared segments. Grown segment performance was challenged by low avocado prices and margins, driven by increased volumes of Mexican avocados. Prepared segment performance was affected by volume softness and winter weather that led to higher operating costs including from temporary facility closures,” said Brian W. Kocher, President and Chief Executive Officer of Calavo Growers, Inc.
“Grown segment market conditions started to recover in February, and we have realized avocado margins within our targeted range of $3 to $4 per case for most of the second quarter. Supply pressure, however, may lead to ongoing volatility in avocado margins. In addition, volume softness in Prepared may persist in the near term as data indicates volume sales have been down broadly across retail food categories. The operating environment, coupled with our first quarter results, has caused us to lower our fiscal year margin expectations for both segments. For 2023, we estimate adjusted EBITDA in the range of $40 to $45 million. While we’re not setting the precedent of giving annual EBITDA guidance, we believe it is important to provide an indication of our expectations for this year given first quarter results.”
A reconciliation of estimated adjusted EBITDA for fiscal 2023 to the most directly comparable GAAP measure is not available at this time because of the uncertainty of various components that are excluded from adjusted EBITDA. These components may be material to the Company’s results in accordance with GAAP for the full year 2023."
For more information:
Thomas Federl
Calavo Growers, Inc.
Tel.: +1 843-801-4174
Thomas.Federl@calavo.com