Loading...
•
Jul 31, 2022
Calavo Growers Q3 2022 Earnings Report
Calavo Growers experienced a 20% increase in total revenue and a significant improvement in net income compared to the same quarter last year.
Key Takeaways
Calavo Growers, Inc. reported a 20% increase in total revenue, reaching $342.0 million, driven by growth in both the Grown and Prepared segments. The company achieved a net income of $1.3 million, a substantial improvement from the net loss of $(13.0) million in the prior year, and gross profit increased to $18.5 million, or 5.4% of revenue.
Total revenue increased by 20% year-over-year to $342.0 million.
Net income was $1.3 million, compared to a net loss of $(13.0) million in the same period last year.
Grown segment revenue increased 28% year-over-year, while Prepared segment revenue increased 9%.
Gross profit improved to $18.5 million, or 5.4% of revenue, compared to $7.9 million, or 2.8% of revenue, in the prior year.
Revenue by Segment
Forward Guidance
Calavo Growers anticipates more normal conditions to persist over the balance of the quarter, with margins recovering in the Grown segment and normalized gross margins expected in the Prepared segment.
Positive Outlook
- Margins are recovering and tracking toward the historical $3-$4 per carton range in Grown segment.
- The opening of Jalisco avocado packing facility for exports to the U.S. is expected to expand avocado volume for U.S. and international customers.
- Fruit purchases for the guacamole line in August are expected to generate more normalized gross margins as it flows through inventory.
- Operating improvements within the Prepared-RFG business are expected to continue.
- Volatility that negatively affected results in the third quarter subsided in August.
Challenges Ahead
- Avocado supply challenges and price volatility in Mexico negatively impacted the results of the Grown segment in July.
- Lower than expected volume put pressure on overall profitability in Grown segment.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...