Calavo Growers Reports Q3 2025 Net Income of $4.7 Million, Sales Decline in Fresh Segment

Calavo Growers, Inc. reported its financial results for the third quarter of fiscal 2025, revealing a net income of $4.7 million, or $0.26 per share, compared to a net loss of $0.7 million, or $(0.04) per share, in the same period last year. For the nine months ending July 31, 2025, the company achieved a net income of $16.1 million, or $0.90 per share, a significant increase from a net loss of $0.9 million, or $(0.05) per share, for the same period in 2024. Total net sales for the third quarter were $178.8 million, slightly down from $179.6 million in the prior year, while year-to-date sales increased to $523.8 million from $491.6 million.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. The Fresh segment, which includes avocados, tomatoes, and papayas, generated net sales of $155.9 million in the third quarter, down from $163.2 million a year earlier. However, the Prepared segment, primarily consisting of guacamole products, saw an increase in net sales to $22.9 million from $16.4 million. The overall gross profit for the third quarter was $18.2 million, down from $20.1 million in the same quarter last year, attributed to increased costs of sales and inventory write-downs related to market conditions.

Strategically, Calavo Growers has made significant organizational changes, including the renaming of its "Grown" reportable segment to "Fresh" to better reflect its activities. The company also reported a dividend payment of $0.20 per share, totaling $10.7 million for the nine months ended July 31, 2025. Additionally, Calavo's operations in Mexico faced challenges due to a temporary FDA detention hold on certain avocados, which resulted in increased costs and inventory write-downs estimated at $4.2 million.

Operationally, Calavo's customer base and geographic reach have expanded, with sales to customers outside the U.S. increasing to approximately $17.2 million in the third quarter, up from $11.9 million in the prior year. The company reported a total of 17,853 shares outstanding as of July 31, 2025, with a slight increase in employee headcount to support its operations. The company’s total assets remained stable at $301.2 million, with total liabilities decreasing to $93.2 million from $99.3 million in the previous year.

Looking ahead, Calavo Growers remains optimistic about its growth trajectory, particularly in the Fresh and Prepared segments. The company is focused on recovering costs associated with the FDA detention hold and is pursuing legal avenues to recover value-added tax receivables from the Mexican government. Management anticipates continued improvement in financial performance as market conditions stabilize and operational efficiencies are realized.