US fresh produce supplier Calavo Growers has posted higher sales and profits for the first quarter of its new financial year due in part to last year’s acquisition of Renaissance Food Group.
Calavo Growers, which saw profits fall by more than 37% in its last financial year, started its new fiscal period with an increase in first-quarter earnings.
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The company posted a 16% rise in net income to US$2.7m for the three months to the end of January. Operating income increased 21% to $4.4m.
Revenue grew 29% to $117.4m, with the former Renaissance Food Group operations, acquired last June, contributing $35m of the increase in sales year-on-year. Renaissance Food Group, which is now part of the Calavo Foods unit, also helped the company’s gross margins, which grew from 9.5% last year to 12% in this year’s first quarter.
Chairman, president and CEO Lee Cole said Calavo had “turned in a very solid operating performance” in the quarter.
“Our RFG subsidiary performed well in its historically slowest quarter, which we believe bodes well for the coming periods. By all indicators, we anticipate a strengthening performance picture across the company — both our Fresh and Calavo Foods business units — as the fiscal year progresses.”
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By GlobalDataCole reiterated that Calavo expects the company to beat its record for annual earnings per share of $1.22 this year. Its first-quarter EPS was $0.18.
