Calavo Growers ( (CVGW) ) has released its Q1 earnings. Here is a breakdown of the information Calavo Growers presented to its investors.
Calavo Growers, Inc. is a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole, serving various sectors including retail grocery and foodservice. The company, headquartered in Santa Paula, California, has a strong focus on innovation and sustainable practices.
In its first quarter of 2025, Calavo Growers reported a significant financial turnaround with total net sales reaching $154.4 million, marking a 21% increase from the previous year. This growth was primarily driven by the Fresh segment, which saw a 23.7% increase in sales. The company also achieved a gross profit of $15.7 million, a 46.2% rise compared to the prior year.
Key financial highlights include a notable increase in the Fresh segment’s gross profit by 88.8% to $12.1 million, largely due to higher avocado prices and improved margins. The company’s net income from continuing operations was $4.4 million, a significant improvement from a net loss of $2.6 million in the previous year. Adjusted EBITDA also saw a substantial increase, more than tripling to $9.3 million.
Despite the positive financial performance, the Prepared segment’s gross profit declined by 17.1%, attributed to higher fruit costs. However, the company managed to reduce its SG&A expenses by 23.6%, reflecting its focus on cost discipline. Calavo Growers also reported a successful VAT refund from Mexican tax authorities, reinforcing its strategic tax approach.
Looking ahead, Calavo Growers remains optimistic about sustaining its growth momentum, particularly with the upcoming peak California avocado season. The management is committed to enhancing margins and delivering continued value to shareholders while navigating regulatory developments and market conditions.