Mon, Sep 9, 8:57 PM (103 days ago)
Calavo Growers, Inc. reported its Q3 2024 results, showing a 12% increase in net sales to $179.6 million, driven primarily by a 20% rise in avocado sales. However, gross profit decreased 9% to $20.1 million due to challenges in the Grown segment, particularly from reduced tomato sales. The company recorded a net loss of $0.8 million, impacted by a $9.3 million goodwill impairment related to the divestiture of its Fresh Cut business, completed on August 15, 2024, for $83 million. Operating cash flow improved to $13.6 million from a loss of $19.2 million year-over-year. The company maintained a strong liquidity position with $1.1 million in cash and $55.3 million in working capital. However, uncertainties surrounding compliance investigations and ongoing tax issues in Mexico persist, potentially affecting future operations. The company has restructured its credit agreement, reducing available revolving credit to $75 million, while focusing on core business growth and returning cash to shareholders. Overall, while sales trends are positive, profit margins are under pressure, and the company faces operational uncertainties moving forward.