Calavo Growers, Inc., a global avocado industry player and provider of convenient, ready-to-eat fresh food, today reported its financial results for the fiscal second quarter ended April 30, 2024.
Second Quarter Financial Overview
In the first quarter of 2024, we concluded that the fresh cut (formerly RFG) business meets the requirements to be classified as held for sale and discontinued operations. As a result, the financial results of that business are reported as discontinued operations in this press release. Prior to the decision to divest our fresh cut business, the Company's Prepared reporting segment included the fresh cut business unit and our guacamole business.
Due to the planned divestiture, the fresh cut business unit is no longer included in our prepared business segment. Retrospective reclassifications also have been made to prior period financial statements and commentary in this press release to present the fresh cut business unit as discontinued operations. Unless otherwise noted, amounts and commentary included in this press release relate to our continuing operations.
- Total net sales of $184.4 million, a 16.5% increase from the prior year quarter
- Grown segment net sales increased 18.9% to $166.8 million
- Prepared segment net sales decreased 1.9% to $17.6 million
- Gross profit of $20.4 million, compared to $15.7 million for the prior year quarter
- Grown segment gross profit increased $3.5 million to $16.0 million
- Prepared segment gross profit increased $1.2 million to $4.3 million
- Net income from continuing operations of $6.5 million, or $0.36 per diluted share, compared to net income of $1.4 million, or $0.08 per diluted share, for the same period last year
- Adjusted net income of $8.9 million, or $0.50 per diluted share, compared to adjusted net income of $5.1 million, or $0.29 per diluted share for the prior year quarter
- Adjusted EBITDA of $13.4 million compared to $9.9 million for the same period last year
Second Quarter Highlights for Continuing Operations
- Grown gross profit increased 27% versus the prior year quarter, driven by strength in avocado margins as well as strong performance in tomatoes.
- Prepared gross profit from continuing operations increased 40%.
- The investigation into potential issues under the Foreign Corrupt Practices Act (FCPA) is progressing and the company is continuing to fully cooperate with the Securities and Exchange Commission and the Department of Justice. Although unanticipated issues may arise, we currently expect the costs associated with the investigation effort to decline beginning in the third quarter.
- The Board declared a quarterly cash dividend of $0.10 per share to be paid on July 30, 2024, to shareholders of record on July 2, 2024.
For more information: 
Julie Kegley
Financial Profiles, Inc.
Tel.: +1 310-622-8246
Email: [email protected]