2023-06-06 16:33:19 ET
Calavo Growers ( NASDAQ: CVGW ) missed revenue estimates with its FQ2 earnings report and disclosed an unexpected loss despite avocado volume being up 11% compared to last year.
The avocado producer reported total revenue fell 26% in FQ2 . Grown segment sales decreased 33% and Prepared segment sales decreased 14%. The average selling price of avocados in CVGW's Grown segment decreased by over 40% while volumes were up 11% compared to a year ago.
Gross profit for the quarter was $15.0M vs. $21.7M a year ago.
Selling, general and administrative expenses totaled $18.1M vs. $16.6M a year ago. The increase primarily was due to costs associated with restructuring and the departure of CVGW's former CEO.
The adjusted net loss for the quarter was $0.2M vs. net income $5.8M a year ago. Adjusted EBITDA was $6.9m vs. $12.7M last year.
The company ended the quarter with $29.3M of total debt, which included $22.2M of borrowings under its line of credit and $7.1M of other long-term obligations and finance leases. Cash and cash equivalents totaled $4.2M, and CVGW had $22M of available liquidity at the end of the quarter.
Looking ahead, Calavo Growers ( CVGW ) expects improved results with avocado margins in FQ3 through early June having exceeded the average level realized in FQ2.
Shares of Calavo Growers ( CVGW ) fll 6.15% in the postmarket session on Tuesday.
More on Calavo Growers:
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- Seeking Alpha's Quant Rating for Calavo Growers
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Calavo Growers sheds 6% after lower avocado prices whack FQ2 results