Calavo Growers, a Californian-based worldwide leader in packing and distributing avocado, processed avocado and other perishable food products, has announced sales of $56.1 million (€59m) for its second quarter ending in April, representing an increase of 6.5 per cent over the same prior year period.
The results were driven principally by growth generated by the company's international and perishable food products segment, higher gross profit percentages generated by each of the company's business segments and the overall effect of increased net sales which improved gross margins.
Gross margins generated from operations for the second quarter of 2002 increased by 61.3 per cent, from $4.4 million to $7.1 million.
"Calavo's second fiscal quarter performance exceeded our expectations on both the top and bottom lines," said Lee Cole, Calavo chairman, chief executive officer, and president.
"Compared with the same prior year period, our International Avocados and Perishable Food Products Business had increased sales of $15.4 million. In addition, each of our company's business segments reported higher gross profit percentages."
"In this six month time frame, positive cash flows from our operations and additional capital raised have enabled us to reduce our short-term borrowings by $4.8 million and increase total shareholders' equity by $3.1 million."
The company's packinghouse in Uruapan, Mexico increased its volume by 16.2 million pounds in the first six months of fiscal 2002 or 115.1 per cent when compared with the same prior year period. Sales generated by the International Avocados and Perishable Food Products segment increased to $15.4 million for the second quarter as compared with $8.5 million for the same prior year period.
. In April 2002, Calavo made an initial deposit with an equipment manufacturer to purchase two high-pressure food processing machines. This equipment will allow the Processed Products segment to introduce and offer high pressure processed avocado pulp product.
With the introduction of this product line in September 2002, Calavo will be the only avocado company offering frozen and high pressure guacamole, as well as avocado halves to foodservice, retail, and club-store customers.
The company expects that its performance for the second half of the financial year will remain steady or may witness a small increase.