Calavo Growers, Inc. Announces Second Quarter and Six-Month Period Ended April 30, 2025 Financial Results

Core Viewpoint - Calavo Growers, Inc. reported financial results for the second fiscal quarter and six-month period ended April 30, 2025, showing a mixed performance with increased net sales but decreased gross profit due to lower volumes in key segments [1][8]. Second Quarter Financial Overview - Total net sales for the second quarter were $190.5 million, a 3.3% increase from the prior year quarter [6][13]. - Fresh segment sales were $174.7 million, a 4.7% increase, while prepared segment sales were $15.9 million, a 9.9% decrease [6][13]. - Gross profit was $18.1 million, an 11.9% decrease from the prior year quarter, with fresh segment gross profit declining 13.4% to $14.1 million [6][15]. - Net income from continuing operations was $6.9 million, or $0.38 per diluted share, compared to $6.1 million, or $0.34 per diluted share, in the prior year quarter [6][20]. Six-Month Period Financial Overview - Total net sales for the six-month period were $344.9 million, a 10.6% increase from the prior year period [6][17]. - Fresh segment sales increased 12.4% to $314.4 million, while prepared segment sales decreased 5.4% to $30.5 million [6][17]. - Gross profit for the six-month period was $33.8 million, an 8.0% increase from the prior year period [6][18]. - Net income from continuing operations was $11.3 million, or $0.63 per diluted share, compared to a loss of $0.2 million, or $(0.01) per diluted share, in the prior year period [20]. Segment Performance - Fresh segment growth was supported by significantly higher average avocado pricing, which offset a year-over-year decline in volume [6][12]. - Prepared segment sales decreased primarily due to a decline in sales volume and average selling price [6][12]. - The tomato business experienced a sharp decline in gross profit due to adverse weather and abundant domestic supply, which pressured pricing [10][18]. Management Commentary - The CEO highlighted the strength of the commercial strategy and operational execution amid avocado market volatility, with revenue growth driven by strong pricing performance [8][12]. - Management anticipates strong momentum in the prepared segment during the second half of the year, supported by new customer wins and expanded programs [12][18]. Balance Sheet and Liquidity - As of April 30, 2025, the company had cash and cash equivalents of $60.4 million and total debt of $4.7 million [21].