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Calavo(CVGW) - 2025 Q2 - Quarterly Report
CVGWCalavo(CVGW)2025-06-09 20:15

Financial Performance - Net sales for the three months ended April 30, 2025, were 190,546thousand,anincreasefrom190,546 thousand, an increase from 184,383 thousand in the same period of 2024, representing a growth of 0.63%[12] - Gross profit for the six months ended April 30, 2025, was 33,817thousand,comparedto33,817 thousand, compared to 31,298 thousand for the same period in 2024, reflecting an increase of 8.05%[12] - Operating income for the three months ended April 30, 2025, was 7,630thousand,slightlyupfrom7,630 thousand, slightly up from 7,316 thousand in the prior year, indicating a growth of 4.31%[12] - Net income attributable to Calavo Growers, Inc. for the six months ended April 30, 2025, was 11,265thousand,comparedtoanetlossof11,265 thousand, compared to a net loss of 205 thousand in the same period of 2024[12] - Basic net income per share for continuing operations was 0.38forthethreemonthsendedApril30,2025,comparedto0.38 for the three months ended April 30, 2025, compared to 0.36 for the same period in 2024, showing an increase of 5.56%[12] - For the three months ended April 30, 2025, net sales reached 190.546million,a3.3190.546 million, a 3.3% increase from 184.383 million in the same period of 2024[24] - For the six months ended April 30, 2025, net sales reached 344,931thousand,comparedto344,931 thousand, compared to 311,989 thousand for the same period in 2024, reflecting an increase of 10.5%[25] - Net income attributable to Calavo Growers, Inc. for the three months ended April 30, 2025, was 6.850million,comparedtoanetlossof6.850 million, compared to a net loss of 6.062 million in the same period of 2024[15] - Basic and diluted net income per share attributable to Calavo Growers, Inc. for the three months ended April 30, 2025, was 0.38,comparedto0.38, compared to 0.34 for the same period in 2024[60] Cash Flow and Liquidity - Cash flows from operating activities for the six months ended April 30, 2025, were 11,264thousand,significantlyhigherthan11,264 thousand, significantly higher than 2,150 thousand in the same period of 2024[13] - The company reported a net increase in cash and cash equivalents to 60,361thousandasofApril30,2025,upfrom60,361 thousand as of April 30, 2025, up from 4,273 thousand at the end of the same period in 2024[13] - The company declared a dividend of 0.20pershareinApril2025,totaling0.20 per share in April 2025, totaling 3.574 million[15] - The company paid dividends of 3.6milliononJanuary31,2025,andanother3.6 million on January 31, 2025, and another 3.6 million on April 29, 2025, at a rate of 0.20pershare[38]−Thecompanydeclaredaquarterlycashdividendof0.20 per share[38] - The company declared a quarterly cash dividend of 0.20 per share on June 3, 2025, payable on July 30, 2025[74] Segment Performance - The Fresh segment generated 160.531millioninsalesforthethreemonthsendedApril30,2025,comparedto160.531 million in sales for the three months ended April 30, 2025, compared to 136.055 million in the same period of 2024, reflecting an 18% increase[24] - The Prepared segment reported net sales of 15.885millionforthethreemonthsendedApril30,2025,downfrom15.885 million for the three months ended April 30, 2025, down from 17.628 million in the same period of 2024, a decrease of 9.9%[24] - The Fresh segment's sales for the six months ended April 30, 2025, totaled 284.370million,comparedto284.370 million, compared to 235.686 million in the same period of 2024, an increase of 20.6%[24] Expenses and Costs - Selling, general and administrative expenses decreased to 10,303thousandforthethreemonthsendedApril30,2025,from10,303 thousand for the three months ended April 30, 2025, from 13,020 thousand in the same period of 2024, a reduction of 20.9%[12] - The company incurred 10.4millionand10.4 million and 22.0 million of cost of sales to Belher for the three months ended April 30, 2025, and 2024, respectively[35] Assets and Liabilities - The total inventory as of April 30, 2025, was 41,625thousand,upfrom41,625 thousand, up from 34,157 thousand as of October 31, 2024, marking an increase of 21.9%[27] - The net carrying value of long-lived assets as of April 30, 2025, was 51,058thousand,downfrom51,058 thousand, down from 54,200 thousand as of October 31, 2024, a decrease of 5.4%[26] - The company had outstanding payables to Board members totaling 0.4millionasofApril30,2025,comparedtononeasofOctober31,2024[29]−TheinvestmentinDonMemowasvaluedat0.4 million as of April 30, 2025, compared to none as of October 31, 2024[29] - The investment in Don Memo was valued at 3 million as of April 30, 2025, an increase from 2.4millionasofOctober31,2024[32]−Thecompanyreportedatotalbalanceofshareholders′equityof2.4 million as of October 31, 2024[32] - The company reported a total balance of shareholders' equity of 206.559 million as of April 30, 2025, up from 202.869millionasofJanuary31,2025[15]StrategicFocusandFutureOutlook−Thecompanyplanstocontinuefocusingonoperationalefficiencyandpotentialmarketexpansionstrategiesintheupcomingquarters[8]−Thecompanyiscurrentlyevaluatingthepotentialeffectsofrecentlyissuedaccountingstandardsonitsfinancialstatementdisclosures[21][22][23]−Thecompanyhasnotexperiencedanychangesrelatedtoleasecontingencies,withamaximumexposureof202.869 million as of January 31, 2025[15] Strategic Focus and Future Outlook - The company plans to continue focusing on operational efficiency and potential market expansion strategies in the upcoming quarters[8] - The company is currently evaluating the potential effects of recently issued accounting standards on its financial statement disclosures[21][22][23] - The company has not experienced any changes related to lease contingencies, with a maximum exposure of 32 million in future minimum lease payments[55][56] - The company continues to assess its obligation under lease contingencies but does not believe it is probable that it will be required to fulfill any obligations under these leases[56] Market and Risk Assessment - There have been no material changes in market risk from the information provided in Item 7A[138] - The quantitative and qualitative disclosures about market risk are included in the Annual Report on Form 10-K for the year ended October 31, 2024[138] Other Notable Events - The company experienced a foreign currency gain of 957thousandforthethreemonthsendedApril30,2025,comparedtoalossof957 thousand for the three months ended April 30, 2025, compared to a loss of 181 thousand in the same period of 2024[12] - The company has renamed its "Grown" reportable segment to "Fresh" to better reflect its activities, with no impact on financial results or performance metrics[18] - The Fresh Cut business was sold for a total transaction value of 83million,with83 million, with 52 million for business assets and 31millionforrealestate[71][72]−Thecompanyincurredagoodwillimpairmentchargeof31 million for real estate[71][72] - The company incurred a goodwill impairment charge of 9.3 million in connection with the sale of the Fresh Cut business[68] - The company recorded a provision of 11millioninthethirdquarteroffiscalyear2021relatedtothe2013taxassessment,whichincludesestimatedfines,interest,andinflationaryadjustments[53]−AsofApril30,2025,thecompany′sVATreceivablesfromtheMexicangovernmenttotaled11 million in the third quarter of fiscal year 2021 related to the 2013 tax assessment, which includes estimated fines, interest, and inflationary adjustments[53] - As of April 30, 2025, the company's VAT receivables from the Mexican government totaled 50.7 million (1.0 billion Mexican pesos), reflecting a slight increase from $48.7 million (976.0 million Mexican pesos) as of October 31, 2024[63]