Calavo Growers Inc · Q1 2022 earnings

Briefing

Calavo Growers reported a net loss and increased revenue in the first quarter of 2022.

Calavo Growers, Inc. reported a 24% increase in total revenue to $274.1 million for the first quarter ended January 31, 2022. However, the company experienced a net loss of $(4.0) million, or $(0.23) per diluted share, compared to a net income of $5.3 million, or $0.30 per diluted share, for the same period last year. The decrease in gross profit margin reflected inflationary pressures on labor, raw materials and freight combined with supply constrained volume declines and adverse foreign currency impacts in the Fresh segment.

• Total revenue increased by 24% year-over-year to $274.1 million.
• Fresh segment revenue increased 41% year-over-year.
• Net loss was $(4.0) million, or $(0.23) per diluted share, compared to net income of $5.3 million, or $0.30 per diluted share, for the same period last year.
• Adjusted EBITDA was $4.7 million, compared to $9.4 million for the same period last year.

Headline financials

Revenue & EPS history

Demand for fresh, healthy and convenient products remains strong even as industry-wide inflationary pressures on raw materials, freight, packaging and labor costs persist. The company has and will continue to implement pricing and operational initiatives to offset these items, and they are seeing quarter to quarter sequential improvement in profitability. The company is optimistic that they will see ongoing profit improvement from their efforts.