Calavo Growers

Leading avocado marketer Calavo Growers has this week announced that 2010 began solidly enough for the company, with net income falling to US$2.3m from US$4.4m during the corresponding period of 2009.

Revenue for the three months ended 31 January 2010 fell to US$67.3m from US$70.6m in 2009, with group's results being constrained by the effects of lower-than-anticipated volumes coming our of Mexico.

'Despite our slower start to fiscal 2010, by every indicator, this year is expected to produce a record avocado supply – approximately 1.5bn lbs according to forecasts – from all available sources, which will benefit Calavo significantly,' said group chairman, president and CEO Lee Coles. 'Consumer demand for fresh avocados continues to expand and available supply is keeping pace. We believe that early shipment postponements will catch up for the remainder of 2010 and we anticipate sharply higher year-over-year avocado volume to drive our unit-driven business model.

'Furthermore, fresh avocado factors aside, other important aspects of Calavo's performance were positive during the first period – including guacamole and diversified fresh product sales – and we are confident these also bode well for the current fiscal year,' he added.

Looking ahead to the rest of 2010, Mr Cole said that he remained confident over the group's prospects, more so than at 'any other time in my 12-plus years as chief executive'.

'I am looking forward to advancing our objective of building an even stronger, broader-based Calavo during fiscal 2010,' he noted. 'We move into the quarters ahead from a strong, enviable position and expect to gain momentum as the fiscal year progresses.'