Calavo Growers has posted revenues of US$91.3m for the third quarter, up by 16% from last year, representing record quarterly turnover for the California-based avocado producer.
Revenue growth was fuelled by double-digit sales percentage gains in both fresh and processed avocado operations, the company said.
However, net income fell to $2.2m from $2.9m in the comparable period in 2006. The company attributed the earnings decline to the unusually high cost of Mexican avocados used in its processing operations, after supplies from Chile had been delayed.
Net income for the nine-month period rose by 38% to $6.1m on sales up 11% at $217.7m.
“With our all-time best sales quarter, Calavo continues to demonstrate that we have created a formidable engine for growth, propelled by multiple sales platforms to offset seasonality, adverse weather and other market conditions,” said president and CEO Lee Cole. “Our fresh operations achieved sales growth of 16% in the quarter, driven by a highly favourable pricing environment for avocados.”
Cole added that the processed division also saw quarterly sales growth of 16% which reflected expanding interest by both retail and foodservice operators.
Having posted record results through the first nine months of fiscal 2007, Cole said Calavo was “on target” for the most successful year in its history.
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