Calavo Growers, Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

Core Viewpoint - Calavo Growers, Inc. reported strong financial results for fiscal year 2024, with significant growth in net sales and net income, driven by a strategic focus on core avocado and guacamole operations following the divestiture of the Fresh Cut business [6][7][9]. Fiscal Year 2024 Financial Overview - Total net sales increased by 11.4% to $661.5 million compared to the previous year [7]. - Net income from continuing operations rose approximately 36% to $6.8 million, or $0.38 per diluted share [7]. - Adjusted net income increased to $18.7 million, or $1.05 per diluted share, up from $11.5 million, or $0.64 per diluted share in the prior year [7]. - Adjusted EBITDA grew by approximately 11% to $37.0 million [7]. Fourth Quarter Financial Overview - Total net sales for the fourth quarter were $170.0 million, a 19.5% increase from $142.2 million in the same quarter of the previous year [9]. - Net loss from continuing operations improved by approximately 48% to $2.5 million, or $(0.14) per diluted share [12]. - Adjusted net income for the fourth quarter was $0.8 million, or $0.05 per diluted share, compared to an adjusted net loss of $0.4 million in the prior year quarter [12]. - Total gross profit for the fourth quarter was $16.3 million, representing 9.6% of net sales [10]. Segment Performance Grown Segment - Grown segment net sales increased by 23.4% to $154.6 million, with gross profit rising to $14.3 million, driven by a 10% increase in avocado volume and higher margins [13]. - Average avocado prices increased by approximately 16% compared to the same period last year [9]. Prepared Segment - Prepared segment net sales decreased by 9.4% to $15.3 million, with gross profit declining to $2.0 million due to higher fruit costs [14]. - The company anticipates double-digit sales volume growth in the guacamole business for fiscal year 2025 [15]. Balance Sheet and Liquidity - As of October 31, 2024, the company had cash and cash equivalents of $57.0 million and total debt of $5.1 million [16]. - The company ended the year with $108.8 million of available liquidity and no borrowings under its credit facility [16].