Calavo Growers has reported that fiscal 2013 first-quarter revenues and gross margin climbed to record highs, although the overall result was impacted by a US$1.2m performance-based earn-out consideration expense related to the acquisition of RFG.
The US-based group, a global avocado-industry leader and an expanding provider of value-added fresh food, said that net income for the three months ended 31 January 2013 came in at US$3.5m, before the RFG consideration expense brought it down to US$2.7m.
Revenues advanced 19 percent to US$139.5m from US$117.4m in the fiscal 2012 first quarter, while gross margin rose 10 per cent to US$13.1m.
'Calavo delivered excellent operating results in the first quarter with each of the company's three business segments –Fresh, Calavo Foods and RFG – registering higher revenues to pace our performance,' said chairman, president and CEO. 'Of particular note, we sold 36 per cent more cartons of fresh avocados quarter-over-quarter – nearly 900,000 additional units or about 22m lbs – reflective of the steady rise in demand.
'Furthermore, in line with expectations, we saw a sharp recovery in fresh tomato volume and pricing over last year's market glut, with units sold rising 132 per cent, to augment results in the Fresh business segment,' he added.
Cole pointed out that while first quarter net income was hit by the US$1.2m performance-based earn-out consideration recorded for the RFG transaction, the group was viewing this as a positive occurrence with RFG exceeding performance targets.
Looking ahead, Cole said that Calavo has begun the year 'with considerable velocity behind the operating performance in each of its business units and I am enormously optimistic that momentum will continue to build in the subsequent quarters of fiscal 2013.
'Based upon initial indicators, I have every confidence that Calavo will post record net income and per-share results in fiscal 2013.'
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