U.S.: Calavo net income swells 20% in Q1 - FreshFruitPortal.com

U.S.: Calavo net income swells 20% in Q1

More News Most Read Today's Headline
U.S.: Calavo net income swells 20% in Q1

Calavo Growers (NYSE:CVGW) saw net income jump 19.8% in the first quarter to US$6.3 million from US$5.3 million last year.

The company highlighted revenue growth of 5% to US$204.6 million year-on-year, compared to US$194.8 million.

Calavo attributed the strong results to sourcing and production-management capabilities, as well as its Renaissance Food Group, LLC (RFG) business segment which delivered double-digit revenue growth despite a challenging environment.

"RFG's sales growth remained strong in spite of unusual weather patterns which unfavorably impacted segment revenue and gross margin. These weather patterns reduced product availability and constrained segment sales," said Calavo chairman and chief executive officer Lee E. Cole.

"Additionally, the 2016 Super Bowl took place one week later than usual this year and had some impact on sales volumes in both our Fresh and RFG segments in Calavo's fiscal first quarter.

"Nonetheless, it speaks to the strength and resiliency of Calavo's multi-pronged model that, despite both the dip in RFG segment gross margin and timing of the Super Bowl, we were still able to post a 20 percent year-over-year increase in net income."

Cole forecast a long-term growth period for the avocado sector, and highlighted Calavo's position to build upon its avocado category leadership.

"The avocado industry is poised for continued expansion this year, well beyond the 2-billion-pound threshold surpassed in 2015.

"Industry projections continue to point to consumption that is expected to reach 2.5 billion pounds this year. To this point, consider that on the recent Super Bowl Sunday alone, avocado consumption was estimated at 139 million pounds, up from 99 million pounds two years ago and it puts this growth rate in perspective.

"The company's first quarter performance places Calavo on trajectory for what I am confidently forecasting to be another record-setting year," he said.

Photo: www.shutterstock.com

www.freshfruitportal.com

Subscribe to our newsletter