Mon, Jun 9, 8:17 PM (34 days ago)
**Calavo Growers, Inc. (CVGW) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $190.5 million, up 3.3% YoY, driven by a 4.7% increase in Fresh segment sales, primarily avocados, offset by a 9.9% decrease in Prepared segment sales. - **Profit Margins:** Gross profit decreased by 11.9% YoY in Q1 2025 due to lower volumes in Fresh products, but increased by 8.0% for the six months ended April 30, 2025, driven by higher avocado selling prices and cost discipline. - **Cash Flow:** Operating cash flow was $11.3 million for the six months ended April 30, 2025, reflecting net income and non-cash activities, offset by changes in operating assets and liabilities. - **Earnings:** Net income for Q1 2025 was $6.9 million, up from $6.1 million in Q1 2024. Earnings per share (EPS) were $0.38 for Q1 2025, up from $0.34 in Q1 2024. **Segment Performance:** - **Fresh:** Sales increased by 4.7% YoY in Q1 2025, driven by higher avocado prices, but offset by a decline in carton volume. Tomato sales decreased due to weather-related demand weakness and strong domestic supply. - **Prepared:** Sales decreased by 9.9% YoY in Q1 2025 due to reduced volumes and average selling prices, but gross profit per pound improved due to operational efficiency and cost management. **Trends & Uncertainties:** - **Market Trends:** Calavo faces macroeconomic challenges, including inflationary pressures and shifts in trade policies, which affect operations and cost management. - **Trade Policies:** Uncertainty surrounding U.S. trade policy, particularly with Mexico, could adversely affect business. Recent tariffs and potential termination of the U.S.-Mexico Tomato Suspension Agreement pose risks. - **Supply Chain:** A severe outbreak of the avocado weevil could disrupt the supply chain, impacting product quality and availability. **Future Operations Impact:** - **Cost Management:** Calavo is implementing strategies to manage inflationary and other cost pressures, including adjusting selling prices and optimizing global sourcing. - **Legal & Regulatory:** Ongoing legal matters, including FCPA investigations and Mexican tax audits, may impact financial outlook. Recent favorable VAT refunds provide positive momentum for broader tax strategy. - **Dividends:** Calavo declared a quarterly cash dividend of $0.20 per share, payable on July 30, 2025, reflecting confidence in financial stability and future growth prospects.