Calavo Growers sees Q1 decrease in total revenue
Calavo Growers announced a decrease in total revenue compared to the same segment last year due to lower selling price but showed an increase in EBITDA in its first fiscal quarter.
Adjusted EBITDA was $9.4 million in the three months ended Jan. 31, compared to $4.5 million for the same period last year.
Total revenue was $220.6 million compared to $273.3 million for the first quarter of 2020, representing a 19 percent decrease.
While avocado volumes were higher, increasing two percent over the prior-year period, total revenue was impacted by lower average selling price, reflecting increased supply from Mexico and lower sales volumes in the Renaissance Food Group and Food segments as a result of the closure of RFG's Midwest co-packing partner last year and the ongoing pandemic.
Gross profit for the first quarter was $17.8 million compared to $15.8 million year-on-year, with the increase attributable to improvements in the fresh segment.
Adjusted net income was reported at $3 million in comparison to $0.8 million last year.
"Our first-quarter results reflect a continuation of trends that we experienced in the fourth quarter of last year," James E. Gibson, CEO of Calavo Growers said.
"Market demand for avocados is increasing, albeit at a slower pace due to the pandemic, and supply remains plentiful, given the strong crop out of Mexico. These dynamics weighed on prices, which on average, were down 14 percent year-over-year. "
"We are optimistic about the remainder of 2021, particularly the second half. While the pandemic is still having a substantial impact on many of our foodservice customers, we believe that they will be able to bridge from this challenging environment to what we anticipate will be a strong economic rebound."
"In the meantime, we are moving ahead with the implementation of our strategic initiatives designed to enhance our long-term growth prospects [...] with the goal of improving profitability, sustainability, and shareholder value,” Gibson said.