Calavo on-track for "record" year, CEO said

Calavo on-track for "record" year, CEO said

Calavo Growers, the US avocado-to-salsa maker, today (7 September) booked higher sales and earnings for the first nine months of its financial year, helped by "record" results in its third quarter.

Net income for the nine months ended 31 July grew 28.4% to US$28.8m. Operating income climbed 30.5% to $45.6m. Revenues rose 6% to $688m.

In the third quarter, net income jumped 47% to $12.7m. The company said revenue for the quarter rose 13% to $263.1m. Both results were records for a quarter.

"Measured by nearly every key metric, Calavo's record-setting third-quarter operating performance extends the strong financial results posted in the first half of this fiscal year," chairman and CEO Lee Cole said.

"Top-line growth was driven by double-digit sales gains in both our fresh and Renaissance Food Group business segments. Calavo's record total gross margin principally reflects substantial improvement in the Fresh segment driven by solid avocado volume growth with strong unit profitability."

The company's Calavo Foods division saw third-quarter sales fall to $16.3m a year ago from $17.5m in last year's fiscal third quarter. However, in the first nine months, the unit posted "solid double-digit gross profit growth".

Cole said: "Calavo Foods remains an incremental contributor to total sales and gross margin, in addition to its fully complementary function with the company's two other business segments. With its range of great-tasting, high-quality offerings, we are working diligently to expand sales penetration and the customer base in the foodservice and retail grocery channels."

He added: "Calavo enters the final quarter of fiscal 2016 in an advantageous position. We are squarely on target to post record revenues and earnings per share for the current fiscal year."