Calavo Growers Inc. reported 205% year-to-year growth in profits for the second quarter, logging $6.7 million in net income for the period.
The report for the quarter ending April 30 marked an all-time high for any single period in the history of the 90-year-old Santa Paula, Calif., company, according to a news release. Profits for the six-month period ending in April also set a company record, coming in at $10.7 million, and an increase of 118% compared to the previous year.
“These results are, in large part, attributable to sharp upward gross margin trends in our fresh products and Renaissance Food Group LLC (RFG) business segments,” Calavo president and CEO Lee Cole said in the June 2 news release.
Higher gross margins — nearly 65% higher than 2013’s second quarter margins — also hit an all-time high.
“We did an outstanding job managing Mexican fresh-avocado sourcing and sales operations which contributed to the substantial improvement in Fresh segment gross margin,” Cole said in the release.
The Calavo CEO also said he expects fresh avocado volume growth to accelerate beginning late this fiscal year and continuing into the next. The company’s fresh business segment revenues were up by 10% for the second quarter to $124.0 million.
Cole said in the release that “the company turns the corner into the second half of 2014 in a favorable position. We have momentum behind our operating performance and all three business segments are executing well against plan.”