Calavo Sets New Fiscal Record in Q4 2015 Financial Report

Thu. January 15th, 2015 - by Christofer Oberst

SANTA PAULA, CA Calavo Growers enjoyed a record-breaking performance during fiscal 2014, setting historic highs in key metrics such as adjusted annual earnings per share. The gains of the year gave the company the confidence to predict additonal new records for 2015, both in terms of revenue and earnings per share results.

Lee E. Cole, Chairman, President and CEO “In sum, it was an outstanding final quarter and year for Calavo as measured by our formidable results from operations,” shared Chairman, President and CEO Lee E. Cole. “Our company posted strong final-quarter results to cap a record-breaking fiscal 2014, during which all important metrics reached new historic highs. Of particular note, Calavo’s operating performance in the most-recent period reflects the beneficial impact of sourcing and marketing Mexico-grown avocados, which improved Fresh business segment gross margin and counterbalanced the cyclically smaller harvest of California fruit.”

“We registered sharply improved gross margin in our Calavo Foods business segment—a result of favorable fruit and production costs, as well as significant year-over-year improvement in segment sales—which further contributed to the uptick in overall company gross margin,” he continued. “Finally, sales in the RFG business segment rose by more than 31 percent in the most-recent quarter. RFG continues to execute impressively—penetrating the retail grocery channel with its broad line of refrigerated fresh packaged goods. Its operating performance made significant incremental contribution to Calavo’s top and bottom lines during fiscal 2014.”

Some highlights from Calavo's Q4 results include:

  • Revenues of $200.7 million compared to $190.7 million from the same period last year.
  • Gross margins of $19.4 million compared to $17.4 million from the same period last year.
  • Net losses of $0.2 million.
  • Static earnings per share numbers equal to $0.38/share.

Some highlights from Calavo's full year financial results include:

  • Revenues of $782.5 million compared to $691.5 from the same period last year.
  • Gross margins of $73.0 million compared to $60.1 million from the same period last year.
  • Net income of $0.1 million.
  • Adjusted annual earnings per share of $1.45/share compared to $1.11/share from the same period last year.

Going forward, the company is forecasting double digit revenue and gross profit increases in addition to 20% gains in the same categories for the company's RFG business segment. According to a press release, U.S. avocado consumption is expected to rise 20% to a minimum of two billion pounds.

“With our avocado market leadership—strong sourcing capabilities, sales and distribution expertise, and the vast breadth of resources Calavo brings to bear—we will be beneficiaries of the upward consumption trendline,” Cole explained. “The consistently large Mexico crop, an expected resurgent California avocado harvest, which adversely affected the all-source fruit supply last year and, most importantly, strong consumer demand, all point to a brightening picture for fiscal 2015.”

Stay tuned to AndNowUKnow as we continue to track Calavo's future business plans and economic performance.