Calavo Growers (NASDAQ: CVGW) edged closer to the US$200 million revenue mark in the third quarter with a solid rise in net income, outstripping the sales growth rate for the U.S. avocado industry as a whole.

The California-based business recorded 13% growth in net income reaching US$6.4 million, while revenue was up 27% at US$194.9 million.

Calavo CEO Lee E. Cole said the company's sharply higher fresh avocado volume, which expanded by 700,000 units, was the principal factor behind the positive operating results.

"Avocado consumption continues to grow at an impressive clip - popularity of the fruit is growing rapidly - and Calavo is intent on strengthening its industry leadership position along with it," he said in a release.

"To put the company’s fresh avocado unit growth into perspective, Calavo’s 21 percent volume increase in the most-recent quarter outstrips the industry as a whole, which expanded 17 percent by comparison.

"The industry figures include Calavo’s formidable growth. Remove our company from the equation and industry expansion drops to 15.5 percent, making Calavo’s outstanding fresh avocado market-share growth rate and category leadership all the more impressive."

The executive said the larger year-over-year California avocado harvest and ample supplemental volumes available from Mexico had helped the business sell 2.5 million cartons more of the fruit in the first nine months of the fiscal year.

Photo: Calavo

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