Calavo Growers, a global leader in avocado marketing and an expanding provider of other perishable produce items, has announced in a press release that its fiscal 2009 second quarter and initial six-month net income reached the highest levels in the company’s history.
Net income for three months ended April 30, 2009, rose by 177 per cent to US$4.5m, up from US$1.6m in the year-earlier period, while total net income for the first half of fiscal 2009 increased by 277 per cent to a record US$8.8m, compared with US$2.3m last year.
The results mark the third consecutive quarter in which Calavo’s net income and earnings per share have established all-time highs.
According to Calavo, the sustained financial performance comes on the strength of gross margins that continue to track upward owing primarily to “measured execution of a company strategic plan that has diversified product sourcing, expanded the range of commodity-produce offerings and effectively leverages existing infrastructure”.
The rise in earnings in the first half came despite a fall in sales, with revenues down at US$157.5m from US$171m a year earlier. Sales in the second quarter slid to US$86.8m from US$98.8m in year-earlier period, a quarter in which Calavo recorded record sales.
Fresh Products segment sales in the second quarter totaled US$76m, which compares with US$88.3m in the corresponding period of fiscal 2008. Total fresh unit volume was essentially unchanged year-over-year, while
imported avocado volume rose 26 per cent from the second quarter last year.
Chairman, president and CEO Lee Cole said Calavo had put in an “outstanding” quarterly performance. “Our strong performance is a formidable achievement in any business climate,” he stated. “However, Calavo’s results are all the more gratifying and impressive when measured in the context of weak broader economic conditions.”
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