Calavo Growers Q3 2020 Earnings Report
Key Takeaways
Calavo Growers reported a 24.7% decrease in revenue to $270.4 million, impacted by lower avocado prices and reduced sales in its RFG and Foods segments. The company sustained supply chain continuity and saw gross profit margin improvements in RFG and Foods segments, though it reported a net loss of $15.6 million due to a non-cash loss on FreshRealm note receivable and investment impairment.
Total revenue decreased by 24.7% year-over-year to $270.4 million.
Gross profit margin increased due to improvements in the RFG and Foods segments.
Net loss was $15.6 million, or $(0.89) per diluted share, mainly due to a $37.2 million non-cash loss.
Adjusted EBITDA was $23.1 million, compared to $26.6 million for the same period last year.
Calavo Growers
Calavo Growers
Calavo Growers Revenue by Segment
Forward Guidance
Calavo is focused on consolidating operations, driving organic growth, enhancing talent, advancing ESG initiatives, and improving investor communications to strengthen the company.
Positive Outlook
- Consolidating the organizational structure of the Fresh, RFG and Foods operations.
- Driving organic growth in each operating segment.
- Leveraging its strong balance sheet and financial flexibility to evaluate strategic acquisitions opportunistically.
- Establishing centralized leadership to support the Company and enhance talent identification and succession planning.
- Continue clear investor communications and increase active engagement with the investment community.