Calavo enjoys record results in Q2
Strong revenues during the second quarter of 2015 helped California-based Calavo Growers (NASDAQ: CVGW) enjoy record results and a net income of US$8.5 million. 
The avocado-focused company saw its revenues increase 13.7% to US$221.6 million from US$194.9 million in the three months ended April 30.
Revenues, gross margin, net income and earnings per share all rose to new record levels during the period.
Fresh business segment revenues grew by 11.2% in the quarter to US$137.9 million, which the company attributed to 'continued improvement in sales and sourcing of California and Mexico-grown fresh avocados'.
The company said a near 20% increase in avocado unit volumes was 'substantially offset by weather-related declines' in other diversified Fresh product categories, which also constrained segment gross margin improvement that otherwise would have registered higher.
President and CEO Lee E. Cole said Calavo had turned in an 'outstanding' showing in the second quarter.
"Double-digit top-line growth was paced by revenue gains in our Fresh and RFG [Renaissance Food Group] business segments," he said.
"Total gross margin increased $4.1 million, translating to an approximately 70 basis point year-over-year gain. This was fueled by gains across all three business segments, most significantly Calavo Foods, which did an outstanding job managing fruit and production costs.
"Fresh business segment operations saw substantially higher avocado volume, increasing by nearly 20 percent over the same quarter last year. This upward trend line in volume is reflective of the expanding consumer demand for fresh avocados and consistent with our previous forecasts for industry growth this year."
He added that the RFG business segment continued to perform 'extremely well', registering another excellent quarter of year-on-year growth.
"From an operations standpoint and, more broadly, indicative of the growth potential in the refrigerated fresh packaged foods segment, we have invested in facilities and capacity expansion at RFG, which we expect will continue to drive top- and bottom-line growth in the quarters and years to come."
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