First-quarter income rose 36% for Santa Paula, Calif.-based Calavo Growers Inc.
For the three months ending Jan. 31, Calavo said in a news release that adjusted net income rose 36% and gross profit jumped 17% compared with the same quarter a year ago. Calavo said operating income rose 53% for the quarter.
“I am pleased to report that Calavo began fiscal 2019 with record-breaking results,” Lee Cole, chairman, president and CEO of Calavo, said in the release. “In the Fresh segment, we overcame a period of limited industry supply in early November and yet still sold substantially more avocado units in the quarter when compared to last year.”
The company reported first-quarter sales in the company’s fresh segment totaled $116.9 million, off slightly from $122.8 million in the same period a year ago. However, gross profit in the fresh segment rose by $6.5 million.
The release said the decrease in fresh segment sales is mostly because of lower avocado market prices compared with year-ago levels. Calavo said total fresh segment unit volumes (avocados, tomatoes and papayas) rose 4% compared with a year ago to 4.3 million units.
Cole said Calavo remains on target to post record revenues and double-digit increases in earnings per share in fiscal 2019.
“We are extremely confident and optimistic about the course ahead in our fresh business segment,” he said in the release.
“Overall industry supply set new records this Super Bowl season, another indication that consumer demand for avocados continues to rise. As important, though, is that we saw strong post-Super Bowl demand, which provides a positive early indicator heading into our fiscal second quarter.”
Cole said he expects Calavo’s avocado unit sales volume to rise by double digits again this year.