Calavo Growers shares strong Q2 financial results

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Calavo Growers shares strong Q2 financial results

Calavo Growers, Inc., a global leader in the avocado industry and provider of convenient, ready-to-eat fresh foods, has reported its financial results for the fiscal second quarter, which ended on April 30, 2024.

Total net sales reached $184.4 million, marking a 16.5% increase from the prior year's quarter, with a gross profit of $20.4 million, up from $15.7 million in the prior year quarter.

The company reported that gross profit grew 27% compared to the prior year's quarter, driven by strong avocado margins and robust performance in tomatoes.

“We are pleased with our second quarter results, which reflect strong operational performance across our portfolio, demonstrating Calavo’s earnings capacity,” said Lee Cole, President and Chief Executive Officer of Calavo Growers, Inc. 

The company presented an adjusted EBITDA of $13.4 million compared to $9.9 million for the same period last year.

Additionally, the Board declared a quarterly cash dividend of $0.10 per share to be paid on July 30, 2024, to shareholders of record on July 2, 2024.

“Improved prices and margins in our core avocado business as well as in our tomato portfolio both sequentially and versus the prior year contributed to our results," said Cole. "We also improved our guacamole business meaningfully versus the prior year through favorable input costs and operational efficiency."

The company's CEO added that the third quarter is off to a great start, and they expect strong results as they remain focused on maximizing value in their core businesses.

“We have been working diligently to complete the sale of the fresh cut business. Some of the terms, including price and structure, remain under negotiation, and we are targeting completion of the sale process during the fiscal third quarter,” Cole added. 

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