Loading...
•
Apr 30, 2020
Calavo Growers Q2 2020 Earnings Report
Calavo Growers' financial performance was impacted by COVID-19, with a decrease in gross profit, a net loss, and a decline in adjusted net income compared to the same quarter last year.
Key Takeaways
Calavo Growers reported a slight decrease in revenue and a significant decrease in gross profit for the second quarter of 2020, primarily due to the impact of COVID-19 on sales volumes in the RFG and Foods business segments. The company experienced a net loss, but adjusted net income remained positive. They also completed the acquisition of Simply Fresh Fruit and had some key management changes.
Total revenue was $281.2 million, essentially flat compared to Q2 2019, despite COVID-19 impacts.
Gross profit decreased to $22.1 million from $36.8 million in the prior year.
Net loss was $3.3 million, while adjusted net income was $7.0 million.
The company completed the acquisition of Simply Fresh Fruit and appointed a new CEO, Corporate Controller and CFO.
Calavo Growers
Calavo Growers
Calavo Growers Revenue by Segment
Revenue by Segment
Fresh Revenue
CapyFin.com Forward Guidance
Calavo withdrew its prior fiscal 2020 guidance due to the evolving and uncertain impact of the COVID-19 pandemic. However, the company anticipates adjusted EBITDA to improve sequentially in the third quarter of fiscal 2020 due to higher sales volumes and lower input costs from seasonality.
Positive Outlook
- Retail volumes are beginning to strengthen.
- Orders from foodservice customers are rebounding off crisis-lows.
- Company serves a blue-chip customer base.
- Company is well-positioned to deliver profitable growth once economic conditions normalize.