Calavo Growers, Inc. has reported financial results for the third fiscal quarter and nine-month period ended July 31, 2025. The company, listed on Nasdaq as CVGW, operates in fresh produce, including avocados, tomatoes, and papayas, as well as prepared avocado products.

Third-quarter net sales were US$178.8 million, a decrease of less than 1% compared to the prior year. Fresh segment sales totaled US$155.9 million, down 5%, while prepared segment sales were US$22.9 million, up 40%. Gross profit was US$18.2 million, down 9%, and included approximately US$4.2 million in costs related to a temporary FDA detention hold on certain avocado imports from Mexico. These costs were tied to inspection, testing, logistics, handling, and inventory write-downs.

© Calavo

Fresh segment gross profit was US$12.4 million, down 32%. Prepared segment gross profit was US$5.8 million, up 201%. Selling, general, and administrative expenses were US$9.2 million, a 12% decrease from the prior year. Net income from continuing operations was US$4.7 million, or US$0.26 per diluted share, compared to US$5.4 million, or US$0.30 per diluted share. Adjusted net income was US$10.2 million, or US$0.57 per diluted share. Adjusted EBITDA was US$15.1 million, compared with US$12.9 million a year earlier.

For the first nine months of fiscal 2025, net sales were US$523.8 million, up 7%. Fresh segment sales totaled US$470.3 million, up 6%, and prepared segment sales were US$53.5 million, up 10%. Gross profit was US$52.0 million, up 1%. Fresh segment gross profit decreased 6% to US$38.6 million, while prepared segment gross profit rose 27% to US$13.4 million. SG&A expenses fell 19% to US$29.8 million.

Net income for the nine-month period was US$16.1 million, or US$0.89 per diluted share, compared with US$9.3 million, or US$0.52 per diluted share, in the prior year. Adjusted net income was US$23.8 million, or US$1.33 per diluted share, compared with US$19.2 million, or US$1.08 per diluted share. Adjusted EBITDA was US$35.7 million, compared with US$29.9 million in the prior year.

Lee Cole, President and CEO, said, “Our third quarter results highlight both the challenges and the opportunities in our business. On the Fresh segment side, results were adversely affected by the temporary FDA detention hold tied to trace detection of Imazalil, a postharvest fungicide not approved for use on avocados, in a single shipment from our Mexican facility.” He added that the prepared segment delivered strong growth with higher volumes.

Cole noted that the FDA matter has been resolved and described it as a non-recurring event. He also said prepared segment sales are projected at approximately US$115 million for fiscal 2026.

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© CalavoFor more information:
Jeremy Apple
Calavo Growers
Tel: +1 310 622 8233
Email: [email protected]
www.ir.calavo.com