Calavo Growers, Inc. today reported its financial results for the fiscal third quarter ended July 31, 2022.
Note: Third quarter results are presented under new reporting segments, Grown and Prepared. Grown consists of the former Fresh segment while Prepared consists of the former RFG and Foods segments, each of which are now divisions within Prepared.
Third Quarter Financial Overview
- Total revenue of $342.0 million, a 20% increase from prior year
- Grown segment revenue increased 28% year-over-year to $207.6 million
- Prepared segment revenue increased 9% year-over-year to $134.9 million1
- Gross profit of $18.5 million, or 5.4% of revenue, compared to $7.9 million, or 2.8% of revenue, for the year-ago quarter
- Grown gross profit decreased $0.4 million from prior year to $11.8 million
- Prepared gross profit increased $11.1 million from prior year to $6.7 million
- Net income of $1.3 million, or $0.07 per diluted share, compared to net loss of $(13.0) million, or $(0.74) per diluted share, for the same period last year
- Adjusted net income of $2.9 million, or $0.16 per diluted share, compared to net loss of $(3.0) million, or $(0.17) per diluted share for the year-ago quarter
- Adjusted EBITDA of $8.1 million, or $0.46 per diluted share compared to $1.0 million, or $0.06 per diluted share for the same period last year
- Reduced debt balance by $16.3 million
Prior year periods have been recast to conform to the new segment reporting
Third Quarter Highlights
- Announced the hiring of new Chief Financial Officer Shawn Munsell and SVP & General Manager of Calavo Grown Danny Dumas. Subsequent to quarter end, Helen Kurtz was named SVP & General Manager of Calavo Prepared
- Subsequent to quarter end, announced official certification and opening of Jalisco Avocado packing facility for the U.S. market
- Project Uno remains on track as progress was made with pricing initiatives, SKU rationalization, unified procurement, labor efficiencies, freight consolidation and administrative synergies across all business units
Outlook
We saw the volatility that negatively affected our results in the third quarter subside in August, and we expect more normal conditions to persist over the balance of the quarter.
In Grown, margins are recovering and tracking toward the historical $3-$4 per carton range. With the recently announced opening of our Jalisco avocado packing facility for exports to the U.S., we are making progress expanding our avocado volume for U.S. and international customers.
In Prepared, we started buying fruit in August for our guacamole line at prices that will generate more normalized gross margins as it flows through inventory over the balance of the quarter. We will continue implementing operating improvements within our Prepared-RFG business as planned, although we typically experience some seasonal softness in the business in the fourth quarter as fruit availability and demand decline.
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For more information:
Thomas Federl
Calavo Growers, Inc.
Tel.: +1 843-801-4174
Thomas.Federl@calavo.com