Calavo Growers Says Fiscal 2015 is “Most Successful Year Ever”
SANTA PAULA, CA – Shares in Calavo Growers were on the rise this morning after the avocado company shared the financial results of its “most successful year ever.”
As of 12:50 pm EST, Calavo’s stock was up 1.51% to $50.26 on news that it had reached record levels for revenues, gross margin, and earnings per share (EPS) for the full fiscal year 2015, including double-digit growth of the latter two metrics.
Lee E. Cole, Chairman and CEO, said that the continued success is “gratifying and reflects focused implementation of our strategic business agenda,” according to a press release.
For the full year of fiscal 2015, Calavo reported record revenues of $856.8 million versus $782.5 million last year, gross margin of $85.2 million versus $71.2 million last year, and diluted EPS of $1.57 from $0.01 per share last year.
“These record-setting results were achieved in spite of a challenging pricing environment for avocados,” Cole said in a statement, acknowledging the downward pricing pressure on per-unit avocado prices. “This was a unique situation, reflective of an avocado industry rapidly transitioning to annual consumption well in excess of two billion pounds.”
For the fourth quarter, the company’s fresh avocado unit volume increased 22% and gross margin climbed 90% to $5.2 million from $2.8 million during the same period last year.
Sales for the Renaissance Food Group business segment rose 12% and gross margin increased 41.8% to $7.2 million from $5.0 million during the same period last year.
Looking ahead, Cole said that Calavo is in ideal position to achieve yet another record year in 2016 with total avocado consumption expected to reach 2.5 billion pounds next year, up about 20% from 2015.
New facilities in Jacksonville, FL and Jalisco, Mexico are also expected to open in early 2016, which will expand the company’s service capabilities and geographic reach.
“We have built an outstanding company – with multiple revenue and profit drivers – that enable it to successfully navigate challenging cross-currents when they arise,” Cole concluded. “With so much to build on – including our breadth and depth of human, financial, and operational resources – I am highly optimistic of Calavo’s prospects ahead and confident of fiscal 2016 being a record-setting year with respect to revenues and earnings per share.”
Stay tuned to AndNowUKnow as we continue to track Calavo’s financial progress in the first quarter of 2016 and beyond.