US fresh produce supplier Calavo Growers today (6 June) booked higher half-year profits after a recovery in its earnings in its second quarter.
Calavo had seen its profits fall year-on-year in its first quarter but saw a rebound in the second quarter drive growth across the first half as a whole.
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The company’s net profit rose 13.4% to US$18.2m in the six months to the end of April. Its net profit in the second quarter jumped by a third to $12.9m.
In Calavo’s first quarter, the margins the company made from its fresh division were down, hit an “inconsistent” supply of avocados throughout that industry. In the second quarter, Calavo’s fresh division saw its margins rise, with the company pointing to a “focus on execution” in its avocado business.
First-half group operating income rose 14.7% to $28.9m. Calavo’s half-year net sales increased 16.9% to $496.7m.
Chairman, president and CEO Lee Cole said Calavo’s first two quarters “favourably position the company to achieve the double-digit growth in revenues and gross margin dollars which we previously forecast”.
He added: “I am confident that we remain on target to that end, which will allow the company to post record earnings per share in fiscal 2017.”
Shares in Calavo were up 5.36% at $72.75 at 12:20 BST.
