Calavo Growers, the US fresh produce group, has reported "record" nine-month sales and profits.
For the period ended 31 July, net income climbed to US$22.4m from $1.3m. Calavo said its profits in the previous year included contingent consideration expense primarily related to the revaluation of earn-out liability linked to its 2011 acquisition of Renaissance Food Group.
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Excluding those costs – but including the non-recurring gain from the de-consolidation of FreshRealm, a cloud-based tech business that linked companies in fresh food together – adjusted net income totalled $26.7m. In the previous year, excluding FreshRealm and RFG, nine-month net income was $19.1m.
Operating income rose to $34.9m from a loss of $13.9m.
Sales, meanwhile, were up 11.5% at $648.8m.
Net sales from each of Calavo's three divisions – its largest and avocado-centred unit fresh products; foods, which supplies dips and guacamole; and Renaissance Food Group – saw sales rise over the nine-month period.
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By GlobalDataChairman and CEO Lee Cole reiterated Calavo's forecast for record revenue and earnings per share.
He said: "Calavo enters the final quarter of fiscal 2015 in a strong position – operationally and financially – which we view as a good indicator for our company’s direction in fiscal 2016, as well.
"I am also pleased to announce that Calavo will be opening a new 208,000 square-foot facility in Jacksonville, Florida, this December. This will be the first fully shared operation between all the major divisions of Calavo – fresh, Calavo Foods and RFG – and will provide us the base for greater business penetration into south-eastern US markets. Through this facility, we will be able to fully leverage synergies between Calavo business units and expect it to contribute revenue and profit growth over time."
