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Apr 30, 2023
Calavo Growers Q2 2023 Earnings Report
Calavo Growers' financial performance declined in the second quarter of 2023 due to lower revenue and gross profit.
Key Takeaways
Calavo Growers reported a 26% decrease in total revenue, a decline in gross profit, and a net loss for the second quarter of 2023. The Grown segment and Prepared segment both experienced revenue declines. However, avocado margins improved compared to the first quarter, and the company is implementing restructuring activities.
Total revenue decreased by 26% year-over-year to $244.7 million.
Grown segment revenue decreased by 33% year-over-year to $140.7 million.
Prepared segment revenue decreased by 14% year-over-year to $104.5 million.
Net loss was $(4.0) million, or $(0.23) per diluted share.
Revenue by Segment
Forward Guidance
Calavo Growers expects earnings to improve in the second half of the year compared to the first half, driven by improved performance in both the Grown and Prepared segments.
Positive Outlook
- Avocado margins in the fiscal third quarter through early June have exceeded the average level realized in the fiscal second quarter.
- Avocado volumes in the fiscal second half are expected to exceed prior year levels.
- The impact of new volume and other operational initiatives is expected to drive improved performance in fresh cut in the fiscal second half compared to the fiscal first half.
- The guacamole division is expected to continue to benefit from reasonable fruit costs and operational improvements versus the prior year.
- Guacamole division is expected to achieve a gross margin of approximately 20% for the full year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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