US produce firm Calavo Growers has seen half-year profits tumble due to the higher cost of Mexican avocados.
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The company today (4 June) reported net income of US$2.3m for the six months to 30 April – down from $3.9m a year earlier.
The fall in profits came as Calavo posted record half-year sales, which reached $171m, a jump of 35%.
Chairman, president and CEO Lee Cole blamed the higher cost of sourcing avocados from Mexico.
“With California avocado packing not accelerating until the final month of the quarter, and the Chilean fruit harvest ebbing early in the period primarily due to the freeze that took place in July of 2007, we were reliant on Mexican volumes to satisfy fresh and processed-product demand,” Cole said.
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By GlobalDataNevertheless, Cole was upbeat about Calavo’s prospects for the rest of the year with the company now in its fiscal third quarter – historically the largest period for Californian avocados in terms of volume.
“We turn the corner into the second half of fiscal 2008 with all the strategic pieces in place to achieve a very successful year,” Cole said.
