Calavo Growers, Inc., which operates in the sourcing, packing, and distribution of fresh produce, recently released its financial outcomes for the second fiscal quarter and the six months ending on April 30, 2025.
In the second quarter, total net sales amounted to $190.5 million, marking an increase of 3.3% from the same period last year. The Fresh segment contributed $174.7 million, representing a 4.7% rise, while the Prepared segment saw a sales decline of 9.9% to $15.9 million. The company's gross profit diminished by 11.9% to $18.1 million. Within this, the Fresh segment gross profit fell by 13.4% to $14.1 million, and the Prepared segment gross profit dropped by 6.3% to $4.0 million. Selling, general, and administrative expenses were reduced by 20.9% to $10.3 million. Net income from continuing operations attributable to Calavo Growers, Inc. increased to $6.9 million, or $0.38 per diluted share, from $6.1 million, or $0.34 per diluted share, in the previous year's quarter. However, adjusted net income decreased to $7.1 million, or $0.40 per diluted share, against $9.1 million, or $0.51 per diluted share, a year earlier. Adjusted EBITDA also declined to $11.4 million from $13.8 million.
Key factors influencing these outcomes include higher average avocado pricing that offset volume declines within the Fresh segment, while the Prepared segment dealt with reduced sales volume. Gross profit per carton improved, particularly because of stronger avocado margins, despite a $0.9 million tariff impact during March 2025 related to United States-Mexico-Canada Agreement goods sourced from Mexico. SG&A expenses were lower, thanks to decreased professional fees, reduced headcount, and less severance expense. Further, Calavo Growers' Board of Directors declared a quarterly cash dividend of $0.20 per share to be paid on July 30, 2025.
For the six months ending April 30, 2025, total net sales increased by 10.6% to $344.9 million. Fresh segment sales were up by 12.4% to $314.4 million, whereas Prepared segment sales decreased by 5.4% to $30.5 million. Gross profit saw an increase of 8% to $33.8 million. In this period, the Fresh segment gross profit rose by 15.6% to $26.2 million, while the Prepared segment experienced an 11.7% decline to $7.6 million. Selling, general, and administrative expenses dropped by 22.3% to $20.6 million. The net income from continuing operations rose remarkably to $11.3 million, or $0.63 per diluted share, from a loss of $0.2 million in the prior year period. Improved adjusted net income of $13.1 million, or $0.73 per diluted share, was reported, compared to $7.7 million, or $0.43 per diluted share, a year earlier.
Throughout the six months, favorable pricing in the Fresh segment overcame reduced avocado volume, despite the tariff impact. However, the Prepared segment continued to be challenged by volume declines and rising fruit costs. Reduced SG&A expenses were attributed to lower professional fees and decreased personnel costs.
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For more information:
Calavo Growers
Tel: +1 805 525 1245
Email: [email protected]
www.calavo.com
