Calavo Growers Q4 2023 Earnings Report
Key Takeaways
Calavo Growers reported a decrease in net sales for the fourth quarter, with a net loss of $7.9 million. The Grown segment saw increased sales, while the Prepared segment experienced a decline. The company is working on selling its fresh cut business and aims to deliver shareholder value in fiscal 2024.
Total net sales decreased by 1.0% compared to the prior year quarter.
Grown segment net sales increased by 5.6%, while Prepared segment net sales decreased by 7.9%.
Net loss was $7.9 million, or $0.45 per diluted share, compared to a net loss of $3.3 million, or $0.19 per diluted share, for the same period last year.
Adjusted EBITDA was $7.0 million compared to $9.6 million for the same period last year.
Calavo Growers
Calavo Growers
Calavo Growers Revenue by Segment
Forward Guidance
The company is focused on delivering shareholder value in fiscal 2024 and is working towards completing the sale of its fresh cut business. It is fulfilling customer demand for the Super Bowl.
Positive Outlook
- Focusing on the fundamentals of our operations
- Gross profit improved sequentially in our prepared segment as we completed onboarding for a large national account customer in our fresh cut division
- Guacamole business continued to perform well operationally and benefitted from lower input costs
- Avocado margins improved versus the prior year quarter due to our margin management discipline
- Sales and operations teams currently are focused on fulfilling customer demand for the Super Bowl.
Challenges Ahead
- Avocado margins softened compared to the third quarter due to seasonality and an unfavorable foreign exchange impact of $3.0 million
- Prepared segment gross profit declined $5.1 million from the prior year quarter, generating a segment gross margin of 5.8%
- The gross profit decline is attributed primarily to lower volume and higher input costs
- Calavo’s fourth quarter avocado volume declined 8.7% from the prior year as we prioritized margin in our volume management decisions.
- Certain matters related to the Company’s operations in Mexico raised potential issues under the Foreign Corrupt Practices Act (“FCPA”)