Leading US avocado group Calavo Growers has reported on a mixed set of results for the fourth quarter of the year, with revenue climbing to a record level but net income taking a hit.
For the three-month period, revenues reached US$147m, a 37 per cent increase on the US$107.2m reached in the same period last year.
However, net income for the quarter dropped to US$3.6m from US$4.8m in 2010, impacted by a cyclically smaller supply of fresh avocados in the market as well as higher Mexican fruit costs in the company's Calavo Foods business segment.
Full-year results followed a similar trend to the final quarter of the year, with revenues growing to US$522.5m, a 31 per cent increase, but net income dropping from US$17.8m in 2010 to US$11.1m.
'Calavo confronted stiff operating headwinds throughout fiscal 2011, resulting from a unique set of factors that included smaller available avocado supply in the marketplace, as well as a freeze that limited availability of fresh tomatoes,' said Calavo chairman, president and CEO Lee Cole. 'The diminished avocado supply had a two-fold impact: it sharply increased the cost of fruit used in our prepared avocado products and hindered the company's fresh avocado volumes impacting the company's unit-driven business model.
'Despite these challenges, Calavo completed arguably the most transformative year in its history with the accretive and strategic acquisition of RFG, while maintaining our strong leadership position in the growing avocado industry,' he continued. 'Even given the tough yearly financial performance, Calavo continued to build a strong leadership position in the growing avocado industry.'
Looking ahead to 2012, Cole said that the company had considerable momentum across its business segments, with Calavo expected to benefit from an expanding supply of fresh avocados, improving gross margins in fresh refrigerated guacamole, and increasing unit volumes in diversified produce.
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