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Calavo Growers, Inc. Posts Sharply Higher Fiscal 2012 Second Quarter And Six-Month Results Before Giving Effect To Mexican Tax Item

Outlook

“As we turn the corner into the second half of the fiscal year with operating momentum squarely behind Calavo, we foresee a continued strengthening picture ahead,” said CEO Cole.

“In the Fresh segment, the company will benefit in the third quarter from its peak packing period for California avocados, with the expected large volume driving production efficiencies and further gross margin improvement. The supply of Mexican-grown avocados at more favorable prices compared to a year ago, supplementing strong domestic fresh fruit production, positions Calavo well to capitalize on expanding consumer demand.

“We anticipate that the beneficial market conditions in Mexico will continue translating to lower fruit costs in our prepared avocado conditions and, as a result, we expect to see strong—likely record—margins in the segment.”

Cole continued: “On a related note, the company’s capital investment in expansion of our Uruapan, Mexico, packinghouse, due to be completed in July, will double fresh avocado capacity at that facility. Upon completion, Calavo will possess the capability to pack 600 million pounds of fresh avocados to keep pace with growing consumer demand and maintain our industry-leadership position.

“Since becoming part of the Calavo family of fresh foods a year ago, RFG has shown strong sales growth, due to an outstanding lineup of value-added, high-quality products. We continue to be enthusiastic about RFG’s pace of product innovation, as well as its keen ability to identify consumer trends and preferences. We also value the significantly larger footprint RFG provides to Calavo in the grocery channel as a result of our combined portfolio of branded offerings.

“I am enormously confident in the multiple revenue and profit engines driving Calavo. We are executing our business agenda extremely well against the ambitious targets we set for ourselves. We have considerable operational and financial strength, as well as a breadth of other resources, at our disposal. With so much to build upon, I am optimistic that the company will register record operating results in fiscal 2012, with net income and per share results at new all-time highs before the effect of the Mexican tax charge,” Cole concluded.

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