Calavo Growers, Inc. Announces First Quarter 2026 Financial Results

Core Viewpoint - Calavo Growers, Inc. reported a decrease in net sales and net income for the first fiscal quarter of 2026, while showing growth in its Prepared segment and ongoing progress on its merger with Mission Produce [1][4][11]. Financial Performance - Net sales for the first quarter of fiscal 2026 were $122.2 million, down from $154.4 million in the prior year quarter, reflecting a 21% decrease [5][7]. - Fresh segment sales decreased by 25% to $104.7 million, primarily due to a 35% decline in average avocado selling prices, despite a 17% increase in avocado carton volume [5][6]. - Prepared segment sales increased by 20% to $17.5 million, driven by a 21% increase in pounds sold and expansion of customer relationships [5][6]. Profitability Metrics - Gross profit was $15.2 million, or 12% of net sales, compared to $15.7 million, or 10% of net sales, in the prior year quarter [6][7]. - Adjusted net income was $4.8 million, or $0.27 per diluted share, down from $6.3 million, or $0.35 per diluted share, in the prior year quarter [9][33]. - Adjusted EBITDA was $8.0 million, compared to $9.3 million in the prior year quarter [9][35]. Expenses and Costs - Selling, general, and administrative (SG&A) expenses totaled $16.4 million, including $7.2 million of non-recurring expenses, compared to $10.3 million in the prior year quarter [8][7]. - The company managed SG&A expenses effectively, with adjusted expenses down from the prior year [4]. Balance Sheet and Liquidity - As of January 31, 2026, the company had cash and cash equivalents of $47.7 million and total available liquidity of $79.8 million [10]. - Total debt stood at $3.9 million, with no borrowings under the credit facility [10]. Merger Progress - The merger with Mission Produce is progressing, with several required filings completed, and the transaction is expected to close in the third fiscal quarter of 2026, pending regulatory and shareholder approvals [4][11].