California-based avocado company Calavo Growers (NASDAQ: CVGW) has announced a 68.8% year-on-year spike for net income in the third quarter, reaching US$19.1 million.

In a release, the group said the result eclipsed an all-time high set in the previous quarter.

"Calavo’s third-quarter operating performance was outstanding by every measure. The company executed extremely well across our three principal business segments—each of which posted top-line gains—paced by double-digit sales growth at Renaissance Food Group, LLC (RFG) and Calavo Foods," said CEO Lee E. Cole.

"In the Fresh business segment, Calavo profitably managed sales and marketing of avocados sourced from Mexico to register substantial year-over-year revenue and gross margin improvement. Our strong, profitable supply of fresh avocados from Mexico during the third quarter enabled the company to offset this year’s small California harvest without missing a beat.

"Rounding out this outstanding third period, Calavo Foods posted record single-period revenues indicative of a growing customer base and sales penetration in the retail grocery and food-service channels."

The company said net income was even higher when considering gains on the sale of part of Calavo's share in cloud-based technology FreshRealm to Impermance, LLC.

Calavo made a US$12.6 million non-operating gain related to the deconsolidation, reducing its stake from 70% to 50%.

"Finally, as planned, FreshRealm, LLC officially launched its new cloud-based, on-demand food preparation and delivery platform in California last week," Cole said.

"The launch is the first of many offerings and regions that FreshRealm expects to roll out in the coming quarters and years. The platform utilizes leading-edge, proprietary hardware and software technology solutions and the FreshRealm Vessel - in conjunction with RFG’s fast-to-market, fresh-food capabilities as a foundation - to bring fresh food to consumers in an unprecedented way. We are excited about the prospects for FreshRealm."

For Calavo's outlook, Cole said exceptional capabilities in sourcing and selling fresh avocados from Mexico have allowed the company to profitably navigate the market-condition headwinds resulting from limited Californian supply.

"These factors unquestionably have been a drag on the all-source fruit supply and constrained consumption during the current year," he said.

"From early indicators and as I have previously stated, we expect to see avocado-industry consumption growth resume in September and October and begin to accelerate in the first half of 2015."

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