Santa Paula-based avocado specialist Calavo has reported on a mixed set of results for the third quarter (Q3) of the year, with net income increasing despite a drop in revenue.
According to the group, net income climbed 40 per cent to US$12.4m, while adjusted net income soared 71 per cent to US$15.1m.
Revenues dropped 2 per cent to US$296.4m, down from the all-time quarterly record high of US$301.6m set in the same period of 2017.
“Calavo posted another strong showing in the fiscal third quarter,' said chairman, president and CEO Lee Cole.I am extremely pleased by the outstanding operating performance in each of our three principal business segments which contributed to our overall results. This solid execution is best reflected in Calavo’s increase in net income and per-share results and, by extension, income from operations that climbed by 58 per cent year over year.
“In our Fresh segment, we executed well, increasing our volume of avocado units sold by 18 per cent from last year’s third period,' he continued. 'While consumption tracked significantly higher, the larger available fruit supply industry-wide resulted in lower year-over-year fresh avocado market pricing which had the effect of constraining Calavo’s sales growth in the most-recent quarter.'
Looking toward the fourth quarter and ahead to fiscal 2019, CEO Cole said he remained “highly confident and enthusiastic about Calavo’s prospects moving forward'.
'Our proven, complementary multi-platform model, which is focused on high-growth fresh food businesses, serves us well and leaves me extremely optimistic about our future,' he added.
