Calavo Growers Turns Profit With Lower Revenue in Quarter

For Calavo Growers, lower avocado prices and tomato revenue lead to a profitable second quarter with less revenue when compared to a year ago.For the fiscal second quarter ending April 30, the Santa Paula-based agricultural company reported net income of $8.8 million, or 50 cents per share, compared with a net loss of $3.3 million (-19 cents), for the same period last year. Total revenue was nearly $277 million, compared to $281 million for the second quarter of 2020, which included one and one-half months of pre-pandemic impact.Increased avocado supply from Mexico negatively impacted the average selling price, down 10 percent from the same period last year. However, lower selling prices were partly offset by increased sales volume, which improved 9 percent from last year. Also, the company’s tomato revenue fell 31 percent.“We are indeed seeing positive signs as the economy reopens and we are pleased with our recovery, which is driving our long-term optimism. For the first half of 2021, we recorded the highest avocado volume in the last five years — reflecting growing consumer demand across all our end markets,” James Gibson, chief executive of Calavo Growers, said in a statement.Shares of Calavo Growers (CVGW) fell Wednesday after the announcement, down $5.21, or 7.1 percent, to close at $68.14.