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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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