US produce supplier Calavo Growers has reported a fall in first-quarter profits amid a decline in margins from its fresh division.
Calavo, however, booked a rise in first-quarter sales and stuck to its revenue and margin forecasts for the full year.
The company booked net income of US$5.2m for the three months to the end of January, compared to $6.3m a year earlier.
Excluding costs from recent changes to Calavo’s management team, the company’s net income was $6m, down from $6.3m a year ago.
Operating income stood at $8.1m, compared to $10.1m a year earlier.
Calavo reported flat sales and a fall in gross margins from its fresh division, its largest by sales.
The company cited an “inconsistent avocado industry supply”, although it said the performance of its fresh avocado business “strengthened considerably” in the latter two months of the quarter.
Net sales and gross margins from the group’s two other units – Calavo Foods and Renaissance Food Group – were higher year-on-year.
“I continue to be confident that Calavo has begun the fiscal year on a path to post double-digit increases in revenues and gross margin dollars, leading to record earnings per share in fiscal 2017,” Calavo chairman, president and CEO Lee Cole said.
Shares in Calavo closed down 1.88% at $54.80 in New York yesterday.