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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) fell 6.15% in the postmarket session on Tuesday.