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Market: NASDAQ
Sector: Food Retailers & Wholesalers
EPIC: CVGW
Latest Price: 27.96  (2.38% Ascending)
52-week High: 28.53
52-week Low: 18.29
Market Cap: 412.95M
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Calavo Growers
www.calavo.com

Calavo Growers procures and markets avocados and other perishable commodities, and prepares and distributes processed avocado products.

Full Calavo Growers profile here
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Avocado Supplier Calavo Growers Posts Record Third Quarter Profits

1st Sep 2010, 4:14 pm
Avocado Supplier Calavo Growers Posts Record Third Quarter Profits

Calavo Growers (“Calavo”) (Nasdaq: CVGW), a supplier and marketer of avocados and other perishable foods based in California, reported that it posted an all-time high for third quarter profits and revenues. 


During the quarter, revenues and profits increased 8% and 141%, respectively, thanks to higher avocado sales and growth in the fresh produce segment.  


For the quarter ended July 31, 2010, Calavo recorded profits of $5.9 million, or $0.41 per diluted share, on revenues of $114.6 million compared to $2.5 million, or $0.17 per diluted share, on revenues of $106.3 million for the same period the previous year. 


The Fresh Product segment totalled $100.7 million for the third quarter, a 6% increase from a year before.  Unit sales increased 43% for the segment thanks to a 47% year-over-year increase in avocado sales. 


The growth in avocado sales is likely to be sustainable because of rising demand due to industry promotion and awareness of the fruit’s health benefits, the company said. 


Looking forward, Lee E. Cole, the CEO of Calavo, said, "From all indications, the fresh avocado harvest will continue to be substantial, with a total estimated supply of around 1.3 billion pounds, propelled by an abundant California supply and augmented by our other established sources in Mexico and Chile.”


Volume growth in prepared avocado products helped the Calavo Foods business segment to increase revenues by 20% on a year-over-year basis during the third quarter.  Revenues for the segment totalled $13.9 million.  


The market was nonetheless indifferent to the Calavo’s results; the company’s share price dropped 1.2% to trade at $19.39.

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