Calavo Growers Reports $19.8 Million Net Income for Fiscal Year 2025, Sales Decline 2%

Calavo Growers, Inc. reported a net income of $19.8 million for the fiscal year ending October 31, 2025, a significant increase from the previous year's net loss of $1.1 million. The company's total net sales decreased by approximately 2% to $648.4 million, down from $661.5 million in 2024. This decline was primarily attributed to lower sales in the Fresh segment, which includes avocados, tomatoes, and papayas, while the Prepared segment, which focuses on guacamole products, saw a 12% increase in sales to $71.9 million, driven by higher volumes and solid demand from foodservice customers.

The company underwent a strategic shift following the divestiture of its Fresh Cut Business in August 2024, which has impacted its operational focus and financial structure. The divestiture resulted in a reduction of the company's scale, necessitating a concentrated effort on optimizing costs and maintaining operational efficiency in its remaining Fresh and Prepared segments. The Fresh segment's sales were particularly affected by a decrease in avocado and tomato volumes, with avocado sales slightly declining by 0.7% despite a 9% increase in average selling prices. Tomato sales, however, fell by 35% due to adverse market conditions and the termination of the 2019 Tomato Suspension Agreement, which imposed anti-dumping duties on Mexican tomatoes.

Operationally, Calavo reported a total employee headcount of 1,969 as of October 31, 2025, with a significant portion of its workforce based in Mexico. The company has emphasized maintaining strong relationships with independent growers to ensure a reliable supply of avocados, which is critical given the perishable nature of its products. The company also noted that its top ten customers accounted for approximately 51% of its consolidated net sales, highlighting a reliance on a limited customer base.

Looking ahead, Calavo has entered into a merger agreement with Mission Produce, Inc., which is expected to close in 2026, subject to shareholder approval and customary closing conditions. Under the terms of the agreement, shareholders will receive $27.00 per share, consisting of both cash and stock in Mission. The merger is anticipated to enhance Calavo's market position and operational capabilities, although there are no guarantees regarding the successful completion of the transaction or the realization of anticipated benefits. The company remains focused on expanding its grower partnerships and strengthening customer relationships to support long-term growth across its business segments.