Calavo(US:CVGW)2021-03-11 18:49Business Overview - Calavo operates a diversified business model across three segments: Fresh, RFG (Renaissance Food Group), and Foods[4, 10] - The company has a strong market position due to its operating platform, supply chain control, and long-term relationships with growers and customers[10] - Calavo has a long track record of financial performance and a strong balance sheet[10] Financial Performance - Based on LTM Q1 2021, the revenue mix is Fresh (56%), RFG (37%), and Foods (7%)[4] - Based on LTM Q1 2021, the gross profit mix is Fresh (59%), RFG (20%), and Foods (21%)[8] - The company has a track record of sustainable growth and consistent annual dividend payout[41] Growth Opportunities and Strategies - Calavo aims to maximize operating leverage and synergies by consolidating its Fresh, RFG, and Foods segments[16, 17] - The company intends to drive organic growth in each operating segment and pursue strategic bolt-on acquisitions[16] - Calavo is focused on expanding its avocado and related food product portfolio in the U S and abroad[32] Avocado Market - The U S avocado consumption shows a significant growth opportunity, with 10.3 units per capita in some regions compared to 6.3 units per capita in others[24] - Avocado sales have shown a 10.1% volume growth, outperforming other fruits[25] - There is a significant opportunity to increase international consumption of avocados[26]