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 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.
Analyze how earnings announcements historically affect stock price performance