Santa Paula, Calif.-based Calavo Growers has reported record 12-month results for the year ending Oct. 31.
The company said in a release that revenues, gross profit, operating income, adjusted net income and adjusted diluted earnings per share reached all-time highs.
“I am enormously gratified to report that Calavo posted another outstanding year in fiscal 2019, shattering multiple records,” chairman, president and CEO Lee Cole said in a news release. “As indication of the fundamental strength in this business, for the full year fresh segment sales grew by double digits to $618 million, while gross profit soared by nearly 60% from $54 million to over $86 million.”
Fourth quarter sales in Calavo’s fresh segment totaled $144.2 million, up from $141.1 million in the fiscal 2018 final period, according to the release. Growth in the quarter ending Oct. 31 reflects higher average industry prices for avocados, according to the release, as well as a double-digit increase in tomato unit sales compared with a year ago.
The company reported fiscal 2019 revenues rose 10% to reach a record $1.2 billion, compared with $1.1 billion the previous year. 2019 was the tenth year in a row when the company’s revenues have set new record highs, according to the release.
Cole said in the release that the outlook is strong for 2020.
“Building upon our record-setting year, Calavo begins fiscal 2020 in an enviable position – financially, operationally and through our depth of human capital and other resources – from which we can continue to drive the company’s growth moving forward,” Cole said in the release. “The extended upward arc in consumer demand for fresh avocados is expected to be met in 2020 with an all-source U.S. supply that, by early industry estimates, should be more than 10% above the recently concluded year. With ample supply, we anticipate considerable opportunities to boost Calavo’s avocado sales both domestically and abroad while continuing to leverage our ability to execute across a range of industry conditions.”
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