Calavo Growers Reports $6.9 Million Net Income and $190.5 Million in Net Sales for Q2 2025

Calavo Growers, Inc. reported a net income of $6.9 million for the three months ended April 30, 2025, reflecting an increase from $6.1 million in the same period last year. The company's net sales for the second quarter rose to $190.5 million, a 3.3% increase compared to $184.4 million in the prior year. This growth was primarily driven by a 4.7% increase in sales from the Fresh segment, which includes avocados, tomatoes, and papayas, while the Prepared segment, which includes guacamole products, saw a decline of 9.9% in sales. For the six months ended April 30, 2025, net sales reached $344.9 million, up 10.6% from $312.0 million in the previous year.

The company experienced significant changes in its financial performance compared to the previous fiscal period. Gross profit for the second quarter decreased by 11.9% to $18.1 million, down from $20.5 million in the same quarter last year. The decline was attributed to lower volumes in both the Fresh and Prepared segments, particularly in tomato sales, which fell sharply due to adverse weather conditions and strong domestic supply. However, gross profit for the six months increased by 8.0% to $33.8 million, driven by higher selling prices and cost discipline in the Fresh segment.

Strategically, Calavo Growers has made notable organizational changes, including the renaming of its "Grown" reportable segment to "Fresh" to better reflect its activities. The company continues to focus on expanding grower partnerships and strengthening relationships with retail and foodservice customers. Additionally, Calavo has been actively managing its operational costs, with selling, general, and administrative expenses decreasing by 20.9% in the second quarter, primarily due to lower headcount and reduced professional fees.

Operationally, Calavo reported an increase in accounts receivable and inventories, with cash and cash equivalents rising to $60.4 million as of April 30, 2025, compared to $57.0 million at the end of the previous fiscal year. The company also noted a significant increase in payable to growers, reflecting heightened farming activity as the spring/summer cycle begins. Despite challenges such as inflationary pressures and potential trade policy shifts, Calavo remains optimistic about its growth trajectory, emphasizing its commitment to managing costs and enhancing product offerings.

Looking ahead, Calavo Growers anticipates continued challenges from macroeconomic factors, including inflation and trade uncertainties, particularly regarding tariffs on imports from Mexico. The company is actively assessing its sourcing and pricing strategies to mitigate potential impacts on margins and operating results. With a focus on expanding its Fresh and Prepared segments, Calavo aims to leverage its strong market position and operational efficiencies to drive future growth.