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Oct 31, 2021
Calavo Growers Q4 2021 Earnings Report
Calavo Growers experienced a mixed fourth quarter, marked by increased revenue but decreased profitability due to inflationary pressures and crop challenges. The company is implementing strategic initiatives to improve profitability.
Key Takeaways
Calavo Growers reported a 17% increase in revenue for the fourth quarter of 2021, reaching $273.4 million. However, the company faced challenges, including inflationary pressures and avocado crop issues, resulting in a net loss of $(13.0) million, or $(0.73) per share. Adjusted net loss was $(1.4) million, or $(0.08) per share.
Total revenue increased by 17% year-over-year to $273.4 million.
Fresh segment revenue increased 26% year-over-year.
Net loss was $(13.0) million, or $(0.73) per share, compared to net income of $6.2 million, or $0.35 per diluted share, for the same period last year.
Adjusted EBITDA decreased to $1.4 million from $13.4 million in the year-ago quarter.
Calavo Growers
Calavo Growers
Forward Guidance
While demand for fresh, healthy, and convenient products remains strong, the industry-wide inflationary pressures on raw materials, freight, and labor costs remain uncertain. The company is implementing pricing and operational initiatives to offset these items and anticipates continued profit improvement from Project Uno.
Positive Outlook
- Demand for fresh, healthy and convenient products remains strong.
- Implementing pricing initiatives to offset inflationary pressures.
- Implementing operational initiatives to offset inflationary pressures.
- Optimistic about continued profit improvement from Project Uno.
Challenges Ahead
- Industry-wide inflationary pressures on raw materials remain uncertain.
- Industry-wide inflationary pressures on freight costs remain uncertain.
- Industry-wide inflationary pressures on labor costs remain uncertain.