SANTA PAULA, Calif., June 11, 2025 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW) (the “Company” or “Calavo”), a global leader in sourcing, packing and distribution of fresh avocados, tomatoes, papayas and processing of guacamole and other avocado products, today announced that it has received a non-binding, indicative proposal to acquire all of the outstanding shares of the Company for consideration nominally valued at $32.00 per share of the Company’s common stock, consisting of a combination ...

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].

Core Insights - The avocado market is rapidly growing, with Mission Produce Inc. (AVO) and Calavo Growers Inc. (CVGW) as key players, each employing distinct strategies and market approaches [1][2][3] Group 1: Mission Produce (AVO) - AVO is positioned as a global leader in the avocado industry, showing strong momentum in fiscal 2025, particularly in its Marketing & Distribution segment despite supply disruptions in Mexico [4][5] - The company's growth strategy is centered on a vertically integrated model, diversified sourcing, and product expansion, with significant investments in infrastructure and a focus on operational efficiency [5][6] - Financially, AVO is demonstrating disciplined growth, with improved adjusted earnings and EBITDA, although it faces tariff uncertainties that could impact margins [6][11] Group 2: Calavo Growers (CVGW) - CVGW is focusing on profitability and operational efficiency, achieving its best first-quarter adjusted net income since 2019, indicating a successful turnaround after restructuring [7][8] - The company has a dual-segment portfolio, combining its Fresh segment with a Prepared segment, which remains strategically important despite facing margin pressures [8][10] - CVGW's operational backbone is strengthened by a vertically integrated supply chain and long-standing grower partnerships, with a significant reduction in SG&A expenses and a tripling of adjusted EBITDA [9][10] Group 3: Financial Estimates and Performance - The Zacks Consensus Estimate for AVO suggests year-over-year declines in sales and EPS for fiscal 2025, while CVGW is projected to experience growth in both metrics [11][14][16] - In the past three months, CVGW has outperformed AVO, with a total return of 16.8%, compared to AVO's decline of 12.3% [17] - AVO trades at a forward P/E multiple of 26.89X, above its 5-year median, while CVGW trades at a lower multiple of 12.49X, indicating a more attractive valuation for investors [21][22] Group 4: Investment Outlook - CVGW is viewed as a more compelling investment opportunity due to its operational turnaround, lower valuation, and improving financial performance, suggesting a favorable risk-reward profile [24][25][26] - Analyst sentiment is positive for CVGW, with forward estimates indicating growing confidence in its earnings potential, while AVO's premium pricing may limit upside surprises [27][28]

Company Overview - Calavo Growers, Inc. is a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole [2] - The company was founded in 1924 and has a strong culture of innovation, sustainable practices, and market growth [2] - Calavo products are marketed under the Calavo brand, proprietary sub-brands, and various private label and store brands [2] - The company serves a diverse range of customers including retail grocery, foodservice, club stores, mass merchandisers, food distributors, and wholesalers worldwide [2] - Calavo is headquartered in Santa Paula, California, with facilities throughout the U.S. and Mexico [2] Financial Announcement - Calavo Growers, Inc. plans to release its financial results for the fiscal second quarter ended April 30, 2025, after the market closes on June 9, 2025 [1]

Company Overview - The HERDEZ® brand is recognized as the No. 1 selling brand of salsa in Mexico and leads the authentic Mexican salsa market in the US [6] - HERDEZ® is part of MegaMex Foods, a rapidly growing Mexican food company in the US focused on innovative flavor experiences [6] - Hormel Foods Corporation, the parent company, generates approximately $12 billion in annual revenue and operates in over 80 countries [7] Product Launch - HERDEZ® is expanding its Mexican Refrigerated Entrées line with the introduction of HERDEZ® Al Pastor Seasoned Shredded Pork with Sauce, which features seasoned shredded pork in a rich sauce [1][2] - The new product is designed to cater to the growing consumer demand for global-inspired meal solutions that are convenient and flavorful [3][4] Market Trends - There is a significant rise in demand for convenient meal solutions, particularly among younger consumers who prefer quality, nutrition, and ease of preparation [4] - Heat-and-eat meat entrees like HERDEZ® Al Pastor provide a smart alternative to takeout or traditional cooking, maintaining taste and quality [4] Pricing and Availability - The retail price for HERDEZ® Al Pastor Seasoned Shredded Pork with Sauce ranges from $9.98 to $10.98 and is available in major retailers nationwide [5]

SANTA PAULA, Calif., April 22, 2025 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in the avocado industry and provider of value-added fresh food (the "Company" or "Calavo"), today announced that following the formal business of the 2025 annual shareholder meeting (the "Annual Meeting"), the Company will provide a general business update. The Annual Meeting will be held at 1:00 p.m. Pacific Time on Wednesday, April 23, 2025. Holders of record at the close of business on February ...