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Apr 30, 2021
Calavo Growers Q2 2021 Earnings Report
Calavo Growers' financial performance recovered, driven by increased avocado volume and strategic initiatives.
Key Takeaways
Calavo Growers reported a revenue of $276.8 million, aligning with the high end of guidance and signaling a recovery towards pre-pandemic levels. The company's net income increased to $8.8 million, or $0.50 per diluted share, compared to a net loss in the previous year. Adjusted EBITDA also saw a rise, reaching $15.0 million.
Total revenue reached $276.8 million, indicating a return to pre-pandemic levels.
Fresh segment revenue decreased 5%, with avocado volume growth offset by lower prices and tomato revenue.
Net income was $8.8 million, or $0.50 per diluted share, a significant improvement from the previous year's net loss.
Adjusted EBITDA grew by 9.5% to $15.0 million.
Calavo Growers
Calavo Growers
Calavo Growers Revenue by Segment
Revenue by Segment
Fresh Revenue
CapyFin.com Forward Guidance
The Company is providing the following expectations for the third fiscal quarter of 2021: ·Revenue in a range of $280 million to $300 million; and ·Adjusted EBITDA in a range of $11 million to $15 million.
Positive Outlook
- Working on pricing initiatives with our business partners
- Accelerating development of internal operational efficiencies
- Strategic initiatives designed to enhance our long-term growth prospects
- Capitalize on opportunities to increase operating leverage
- Further our sustainability initiatives
Challenges Ahead
- Near-term inflationary pressure on labor
- Near-term inflationary pressure on raw materials
- Near-term inflationary pressure on freight
- Monitoring inflation
- Monitoring the labor market