Calavo Growers, Inc. Announces First Quarter 2025 Financial Results

Core Viewpoint - Calavo Growers, Inc. reported strong financial results for the first quarter of fiscal 2025, highlighting significant growth in net sales and profitability, driven primarily by the Fresh segment's performance and improved operational efficiencies [6][9][10]. Financial Overview - Total net sales reached $154.4 million, a 21.0$127.6 million in the prior year quarter [6][13]. - Fresh segment sales increased by $26.8 million, or 23.7$15.7 million, reflecting a 46.2% increase from the previous year [6][14]. - Net income from continuing operations was $4.4 million, or$0.25 per diluted share, compared to a net loss of $2.6 million, or$(0.15) per diluted share, in the prior year [6][16]. Segment Performance - Fresh segment gross profit increased to $12.1 million, an 88.8$3.6 million, primarily due to higher fruit costs [6][21]. Operational Efficiency - Selling, general, and administrative (SG&A) expenses decreased by 23.6% to $10.3 million, attributed to cost discipline and lower professional expenses [6][15]. - Adjusted EBITDA nearly tripled to$9.3 million, a 200% increase from $3.1 million in the prior year quarter, driven by higher margins in the Fresh segment [6][17]. Regulatory and Strategic Developments - The company is cooperating with ongoing investigations by the SEC and DOJ related to the Foreign Corrupt Practices Act, with no anticipated near-term material impact on financial outlook [7][11]. - A quarterly cash dividend of$0.20 per share was declared, to be paid on April 29, 2025 [7]. Tax Strategy - The Mexican tax authorities refunded 13.7 million Mexican pesos (approximately $0.7 million USD) in VAT, marking a significant milestone in the company's tax strategy [7].