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Calavo Growers Inc. (CVGW+3.38%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing an increase in net sales to $154.4 million from $127.6 million in the same quarter the previous year. The increase is attributed to higher avocado pricing within the Fresh segment.
Cost of sales for the quarter was $138.7 million, compared to $116.8 million in the same quarter of the previous year. The increase in cost of sales is associated with higher procurement costs.
The company reported a gross profit of $15.7 million for the quarter, compared to $10.8 million in the previous year, with the improvement attributed to margin expansion in the Fresh segment.
Selling, general, and administrative expenses decreased to $10.3 million from $13.5 million, primarily due to reductions in compensation expenses and professional fees.
Net income for the quarter was $4.4 million, compared to a net loss of $6.3 million in the previous year. The improvement was driven by higher sales and reduced expenses.
Cash used in operating activities was $4.4 million, while cash used in investing and financing activities was $0.3 million and $3.8 million, respectively.
Calavo had a working capital of $87.4 million as of January 31, 2025. The company continues to focus on expanding grower partnerships and strengthening relationships with retail and foodservice customers.
The filing also details various compliance matters, including ongoing cooperation with the SEC and DOJ investigations related to the Foreign Corrupt Practices Act.
Calavo does not anticipate any near-term action from the government's FCPA inquiry that would likely impact its short-term financial outlook.
The company continues to monitor macroeconomic challenges, including inflationary pressures and shifts in trade policies, which may affect its operations in the future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Calavo Growers Inc. quarterly 10-Q report dated March 12, 2025. To report an error, please email earnings@qz.com.