Calavo Growers, Inc. Announces Second Quarter 2024 Financial Results

Financial Overview - Total net sales for the second quarter 2024 were $184.4 million, a 16.5% increase from $158.3 million in the prior year quarter [2][26] - Grown segment net sales increased by 18.9% to $166.8 million, while Prepared segment net sales decreased by 1.9% to $17.6 million [2][26] - Gross profit for the second quarter was $20.4 million, compared to $15.7 million for the same period last year, representing a gross margin of 11.0% [27][28] - Net income from continuing operations was $6.5 million, or $0.36 per diluted share, compared to $1.4 million, or $0.08 per diluted share, for the same period last year [28][39] - Adjusted net income was $8.9 million, or $0.50 per diluted share, compared to $5.1 million, or $0.29 per diluted share last year [8][56] - Adjusted EBITDA was $13.4 million, an increase from $9.9 million for the same period last year [29][56] Segment Performance - Grown segment gross profit increased by $3.5 million to $16.0 million, driven by higher avocado prices, which were approximately 28% higher than the prior year [30][24] - Prepared segment gross profit improved by $1.2 million to $4.3 million, with gross margin rising to 24% from 17% in the prior year quarter [10][30] - The average selling price of avocados in the Grown segment increased by 28% compared to the prior year [6] Management Commentary - The company is working on completing the sale of its fresh cut business, with negotiations ongoing regarding price and structure, targeting completion during the fiscal third quarter [5][24] - Management expressed satisfaction with the second quarter results, highlighting strong operational performance across the portfolio and improved prices and margins in the core avocado and tomato businesses [25]