Calavo Growers, Inc. announced its financial results for the fiscal second quarter and six-month period ended April 30, 2025, on June 9, 2025. Total net sales for the second quarter increased by 3.3% year-over-year to $190.5 million, driven by strong pricing in the Fresh segment.
However, gross profit for the second quarter declined to $18.1 million, or 9.5% of net sales, compared to $20.5 million, or 11.1% of net sales, in the prior-year period. Fresh segment gross profit decreased by 13.4% to $14.1 million, primarily due to lower avocado volumes and a sharp decline in tomato gross profit caused by adverse weather and abundant domestic supply.
The Prepared segment also experienced a decline, with sales decreasing by 9.9% and gross profit falling by 6.3% due to lower volume. Net income from continuing operations for the quarter was $6.9 million, or $0.39 per diluted share, while adjusted net income was $7.2 million, or $0.40 per diluted share, a decrease from $9.1 million, or $0.51 per diluted share, in Q2 2024. Adjusted EBITDA also declined to $11.4 million from $14.1 million in the prior year.
Despite the quarterly declines, the six-month period showed overall improvement, with net sales up 10.6% to $344.9 million, and adjusted net income rising to $13.1 million, or $0.73 per diluted share, from $7.7 million, or $0.43 per diluted share, in the prior year. Adjusted EBITDA for the six months increased to $20.7 million from $17.2 million.
The company ended the second quarter with $60.4 million in cash and cash equivalents and $119.8 million in available liquidity. Management anticipates strong momentum in the Prepared segment during the second half of the year, supported by new customer wins and expanded programs.
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