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Calavo Growers Reports Strongest Q1 Earnings Since 2019

  • Writer: Hardik Shah
    Hardik Shah
  • Mar 12
  • 2 min read
A vibrant Mexican-inspired salad with avocado slices, cherry tomatoes, black beans, corn, red onions, tortilla strips, cotija cheese, and lime-cilantro dressing.

TL;DR

  • Revenue surged 21% YoY to $154.4 million, with Fresh segment sales up 24%.

  • Profitability rebounded, with a net income of $4.4 million vs. a $2.6 million loss last year.

  • Adjusted EBITDA more than tripled to $9.3 million, driven by higher margins and cost efficiencies.


Financial Results


Calavo Growers, Inc. (NASDAQ: CVGW) is a leading provider of avocados and value-added fresh food products. The company operates through two key segments:

  1. Fresh: Avocados, tomatoes, and other fresh produce.

  2. Prepared: Guacamole and ready-to-eat fresh products.


Calavo Growers Earnings

  • Total revenue: $154.4 million (+21% YoY)

  • Fresh segment revenue: $139.8 million (+23.7% YoY)

  • Prepared segment revenue: Flat at $14.6 million

  • Gross profit: $15.7 million (+46.2% YoY)

  • SG&A expenses: $10.3 million (-23.6% YoY)

  • Net income: $4.4 million vs. a net loss of $2.6 million in Q1 2024

  • Adjusted EBITDA: $9.3 million (+200% YoY)

"Our strategic focus on margin improvement and operational efficiency is driving tangible results, with Fresh segment sales increasing about 24% and overall net sales up about 21% year-over-year." – CEO Lee Cole

Operational Performance


Industry & Market Trends

  • Avocado demand remains strong, with a 30.5% price increase per carton despite a 4.6% volume decline.

  • Inflationary pressures persist, but Calavo is leveraging pricing power and operational efficiencies to drive profitability.


Key Business Milestones

  • SG&A reduction by 23.6%, driven by cost discipline and lower professional expenses.

  • VAT refund from Mexican tax authorities of $0.7 million, improving liquidity.


Challenges & Risks

  • Ongoing SEC and DOJ investigations into the Foreign Corrupt Practices Act (FCPA) remain, but no material impact is expected.

  • Mexican import tariffs could increase costs, but management believes the impact will be minimal.

"Although tariffs on imports from Mexico introduce additional costs, we do not currently expect them to have a meaningful impact on our operations." – CEO Lee Cole

Strategic Initiatives


  • Margin enhancement: Strong avocado pricing and cost efficiencies boosted Fresh segment profitability.

  • Growth strategy: Expansion into peak California avocado season expected to drive sustained performance.

  • Regulatory monitoring: Adapting to FCPA enforcement shifts under the new administration.


Capital Allocation

  • Dividend declared: $0.20 per share, payable on April 29, 2025.

  • Strong liquidity position: $48.5 million in cash and no outstanding borrowings under the credit facility.


The Bottom Line


Calavo Growers delivered its best Q1 earnings performance since 2019, driven by strong avocado pricing, cost discipline, and operational efficiencies. The company’s return to profitability, tripling of adjusted EBITDA, and ongoing margin expansion position it well for sustained growth as it enters peak avocado season.


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