Chairman, President and Chief Executive Officer Lee E. Cole stated: “We were deeply disappointed by the ruling of the Mexican appellate court, which we and our legal counsel believe was unsupported by the facts. Despite this unwarranted non-recurring expense, by virtually all financial yardsticks Calavo registered an outstanding performance in the fiscal 2012 second quarter. The company posted solid top-line growth, paced by incremental revenue contribution from RFG. Calavo’s sharply higher year-over-year total gross margin propelled net income and per-share results in the most recent period, principally due to a 23 percent increase in fresh avocado units from the fiscal 2011 second quarter. And as point of considerable note, we also experienced year-over-year unit growth in all diversified fresh products.“As expected, fresh avocado volume in California snapped back strongly from last year’s cyclically smaller harvest, contributing to operating efficiencies across our unit-driven infrastructure. Increased volume in California, continuing strong cost controls and favorable sourcing of fresh avocados from Mexico combined to positively impact total gross margin, which increased nearly 300 basis points from last year. Lower fruit costs in Mexico, compared to year-ago levels, are having the anticipated beneficial effect on gross margin in our prepared avocado business, which is capitalizing on the substantial available supply. Most importantly, consumer demand for avocados continues to expand.”
Calavo Growers, Inc. Posts Sharply Higher Fiscal 2012 Second Quarter And Six-Month Results Before Giving Effect To Mexican Tax Item
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