Jul 31, 2024

Calavo Growers Q3 2024 Earnings Report

Calavo Growers' financial performance reflects continued momentum in the avocado business and strategic divestiture of the Fresh Cut business, resulting in improved adjusted EBITDA and a doubled quarterly dividend.

Key Takeaways

Calavo Growers reported an 11.7% increase in total net sales, reaching $179.6 million. Net income was $5.4 million, or $0.30 per diluted share. The company's adjusted EBITDA increased to $13.5 million. The Board of Directors increased the cash dividend by $0.10 per share to $0.20 per share.

Total net sales increased 11.7% to $179.6 million.

Net income was $5.4 million, or $0.30 per diluted share.

Adjusted net income was $10.2 million, or $0.57 per diluted share.

The Board of Directors increased the cash dividend by $0.10 per share to $0.20 per share.

Total Revenue
$180M
Previous year: $260M
-30.9%
EPS
$0.57
Previous year: $0.41
+39.0%
Gross Profit
$20.1M
Previous year: $25M
-19.6%
Cash and Equivalents
$1.13M
Previous year: $1.4M
-19.7%
Free Cash Flow
$11.3M
Previous year: -$17.1M
-166.2%
Total Assets
$382M
Previous year: $415M
-7.8%

Calavo Growers

Calavo Growers

Calavo Growers Revenue by Segment

Forward Guidance

Calavo Growers anticipates delivering solid financial results for the fourth quarter and fiscal year, planning to invest proceeds from the Fresh Cut business sale into core avocado and guacamole operations and return cash to shareholders.

Positive Outlook

  • Momentum has carried into the fourth quarter.
  • Intend to deploy the cash generated from the sale of our Fresh Cut business by investing in our core avocado and guacamole businesses.
  • Intend to deploy the cash generated from the sale of our Fresh Cut business by returning cash to shareholders over time.
  • Renewed focus on our core operations.
  • Improvements in our financial performance.

Challenges Ahead

  • Potential disruptions to our supply chain.
  • Sensitivity of our business to changes in market prices of avocados and other agricultural products and other raw materials including fuel, packaging and paper.
  • The impact of weather on market prices and operational costs.
  • Seasonality of our business.
  • Risks associated with doing business internationally (including possible restrictive U.S. and foreign governmental actions, such as restrictions on transfers of funds and trade protection measures such as import/export/customs duties, tariffs and/or quotas and currency fluctuations).