Looking ahead the avocado company expects double-digit revenue growth with a substantial increase in supply even after accounting for any fruit loss from the recent California fires.

Californian avocado and processed foods company Calavo Growers (Nasdaq-GS: CVGW) has seen record revenues of US$1.1 billion in the 2017 fiscal year, representing growth of 15%.

In an announcement today, the group highlighted net income was relatively stable year-on-year for the year to Oct. 31, 2017, at US$37.3-38 million.

And for the most recent quarter, the group saw revenue increase 12% to US$277 million and net income rise 11% to US$10.3 million.

"Calavo posted an excellent operating performance in its fiscal 2017 final quarter to cap another successful year," said chief executive officer Lee E. Cole.

"Double-digit revenue growth was powered by higher sales in each of the company’s three business segments, but most notable was our Renaissance Food Group unit where the top line rose 26 percent from last year’s fourth quarter as expansion initiatives continued to take root. 

"Sharply higher gross margin dollars are indicative of strong performance in the company’s Fresh business segment and Calavo’s outstanding avocado production and sales management capabilities. We continued to successfully navigate through market conditions where consumer demand has routinely exceeded available fruit supply."

Outlook for 2018

Cole said that following the accomplishments of 2017, Calavo was moving forward in a very strong position for 2018.

"The current year’s avocado forecast calls for a larger all-source domestic fruit supply which bodes well for our Fresh segment," Cole said.

"The current industry outlook suggests that supply should increase this year over 20 percent, even after accounting for any fruit loss from the recent California fires.

"To that point, the industry remains on an extended avocado-consumption growth trajectory—both domestically and internationally. Calavo—with its breadth of resources across sourcing, production and distribution—is well positioned to satisfy this sustained uptick in demand."

He added the company's fresh avocado production capacity was being further augmented by its newest packinghouse in Jalisco, Mexico, which came online in fiscal 2017 and had enabled Calavo to better serve customers in Asia, Canada and Europe.

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