Calavo Growers Inc. on Thursday said its fiscal fourth quarter profit fell 25 percent, largely due to fresh produce supply shortages, but the earnings still beat analysts’ expectations.
The Santa Paula marketer of avocados and other fresh and prepared food products reported net income of $3.6 million (25 cents a share) for the quarter ended Oct. 30, compared with $4.8 million (32 cents) in the same period a year earlier. Revenue rose 37 percent to more than $147 million.
Analysts surveyed by Capital IQ expected profit of 20 cents a share on revenue of $148 million.
For the full year, the company saw net income fall 38 percent to $11.1 million (75 cents), with revenue up 31 percent to more than $523 million.
Results were affected by cyclically smaller avocado crop as well as a freeze that damaged the tomato crop, both of which raised prices for its guacamole business. That was offset by new revenue from the company’s June acquisition of Renaissance Food Group, which operates six fresh food processing facilities across the country.
“Calavo confronted stiff operating headwinds throughout fiscal 2011,” said Chief Executive Lee Cole in a statement. “We (now) expect to benefit across the board from an expanding supply of fresh avocados, sharply improving gross margin in our fresh refrigerated guacamole products, a fast-growing RFG subsidiary and increasing unit volumes in diversified produce.”
Shares were down 22 cents, or less than 1 percent, to $25.22 in midday trading on the Nasdaq.
For reprint and licensing requests for this article, CLICK HERE.