Key Takeaways:
- Calavo Growers’ Q3 net sales totaled $178.8 million, down less than 1% from the prior year.
- Fresh segment sales declined 5% while Prepared segment sales rose 40%.
- Net income for Q3 was $4.7 million, or $0.26 per diluted share.
- Nine-month revenue increased 7% to $523.8 million.
- The Board declared a quarterly cash dividend of $0.20 per share.
Calavo Growers Third Quarter Performance
Calavo Growers reported total net sales of $178.8 million in the third quarter of fiscal 2025, nearly flat compared to the same period last year. Fresh segment sales were $155.9 million, a 5% decline, while Prepared segment sales increased 40% to $22.9 million.
Gross profit for the quarter was $18.2 million, down 9% year-over-year, with $4.2 million in discrete costs tied to a temporary U.S. Food and Drug Administration detention hold on certain avocado imports from Mexico. Fresh segment gross profit declined 32% to $12.4 million, while Prepared segment gross profit rose 201% to $5.8 million.
Selling, general, and administrative expenses were $9.2 million, down 12% from the prior year. Net income from continuing operations was $4.7 million, or $0.26 per diluted share, compared to $5.4 million, or $0.30 per diluted share, last year. Adjusted net income was $10.2 million, or $0.57 per diluted share, with Adjusted EBITDA of $15.1 million.
Nine-Month Results Through July 31, 2025
For the nine-month period ended July 31, 2025, Calavo Growers reported total net sales of $523.8 million, a 7% increase year-over-year. Fresh segment sales rose 6% to $470.3 million, while Prepared segment sales were $53.5 million, up 10%.
Gross profit for the nine months was $52.0 million, up 1% compared to the prior year. Fresh segment gross profit fell 6% to $38.6 million, reflecting lower volumes and the impact of the Q3 detention costs. Prepared segment gross profit rose 27% to $13.4 million, driven by higher volumes, lower fruit input costs, and improved efficiencies.
Net income from continuing operations was $16.1 million, or $0.89 per diluted share, compared to $9.3 million, or $0.52 per diluted share, in the prior year. Adjusted net income was $23.8 million, or $1.33 per diluted share, and Adjusted EBITDA totaled $35.7 million.
Calavo Growers’ Management Commentary
“Our third quarter results highlight both the challenges and the opportunities in our business,” said Lee Cole, President and Chief Executive Officer of Calavo Growers. “On the Fresh segment side, results were adversely affected by the temporary FDA detention hold tied to trace detection of Imazalil… In contrast, our Prepared segment delivered outstanding growth with higher volumes.”
Cole added: “As of September 2, 2025, the FDA matter has been resolved. This was the first detention hold in the history of Calavo de Mexico since operations began in 1998, and we believe it was a non-recurring event… Combined with the momentum in our Prepared segment, where we currently project sales of approximately $115 million for fiscal 2026, I believe Calavo is well positioned for growth and increased shareholder value.”
Dividend and Legal Update
The company’s Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on October 31, 2025, to shareholders of record on September 30, 2025.
Additionally, on September 2, 2025, the U.S. Department of Justice closed its inquiry into the company’s operations in Mexico under the Foreign Corrupt Practices Act.
Read the full financial report here.
