Calavo Growers, Inc., a global avocado-industry leader and provider of value-added fresh food, today reported its financial results for the fiscal second quarter ended April 30, 2022.
Second Quarter Financial Overview:
- Delivered sequential improvement from the first quarter to the second quarter 2022:
- Gross profit improved by $8.5 million;
- Net loss improved by $3.9 million, or $0.22 per diluted share;
Adjusted EBITDA improved by $7.9 million.
- Total revenue of $331.4 million, a 20% increase from the year-ago quarter.
- Fresh segment revenue increased 30% year-over-year to $211.0 million, Renaissance Food Group (RFG) increased 6% year-over-year and Foods segment revenues decreased 4% year-over-year.
- Gross profit of $21.7 million, or 6.6% of revenue, compared to $22.6 million, or 8.2% of revenue, for the year-ago quarter.
- Net loss of $(0.2) million, or $(0.01) per diluted share, compared to net income of $8.8 million, or $0.50 per diluted share, for the same period last year.
- Adjusted net income of $5.8 million, or $0.33 per diluted share, compared to $7.7 million, or $0.43 per diluted share for the year-ago quarter.
- Adjusted EBITDA of $12.7 million, or $0.71 per diluted share compared to $15.0 million, or $0.85 per diluted share for the same period last year.
- Adjusted net income (loss) and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below.
Second Quarter Highlights
Progressed with pricing initiatives, SKU rationalization, unified procurement, labor efficiencies, freight consolidation and administrative synergies across all business units as part of Project Uno.
Launched a brand refresh, updating the company’s logo, tagline, brand personality and website to support Calavo’s One Company vision.
Announced plans to reorganize our business into two reporting segments, Grown and Prepared, to better serve customers, deliver cost savings and improve efficiencies.
Grown segment will consist of fresh avocados, tomatoes and papayas. Prepared segment will include all other products: fresh cut fruit and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and foodservice as well as avocado pulp sold to foodservice.
New segment reporting is expected to occur in the third quarter’s earnings report.