Calavo Growers, Inc. announced its financial results for the third fiscal quarter and nine-month period ended July 31, 2025. Total net sales reached $523.8 million for the nine-month period, a 7% increase from the prior year.
The company faced challenges in the third quarter, including a temporary FDA detention hold on avocado imports resulting in increased costs.
Despite the challenges, Calavo Growers managed to maintain a stable financial performance with adjusted net income improving compared to the prior year.
Total Net Sales
$523.8 million for the nine-month period with a 7% increase from the previous year.
Gross Profit
$52.0 million for the nine-month period, marking a 1% increase from the prior year.
Adjusted Net Income
Increased to $23.8 million, or $1.33 per diluted share, compared to $19.2 million in the prior year period.
SG&A Expenses
$29.8 million, a 19% decrease from the prior year period.
Dividend Declaration
Quarterly cash dividend of $0.20 per share declared to be paid out on October 31, 2025.
- The temporary FDA detention hold impacted the company's gross profit by approximately $4.2 million due to additional costs and inventory write-downs.
- Lower professional and consulting fees contributed to the decline in SG&A expenses, showing efficient cost management strategies.
- Closure of the FCPA inquiry by the U.S. Department of Justice signifies a positive outcome for the company's operations in Mexico.
Despite the challenges faced during the third quarter, Calavo Growers managed to deliver a solid financial performance, demonstrating resilience in adverse situations. The company's focus on cost management and operational efficiency has supported its growth trajectory.