Calavo Growers Inc - Q2 2024 Financial Results

Date: June 11, 2024

Ticker: CVGW

Exchange: NASDAQ

Sector: Consumer Defensive

Industry: Food Distribution

Overview

The financial results for Calavo Growers Inc for the second quarter of 2024 reflect the company's performance amid a challenging economic and industry environment. According to the report filed on June 10, 2024, with the SEC, the company has shown resilience with notable financial figures and performance metrics for the period.

Financial Highlights

Total Revenue: $184.38M

Gross Profit: $20.36M

Operating Income: $7.14M

Net Income: $7.08M

Earnings Per Share (EPS): $0.40

Gross Profit Margin: 11.04%

EBITDA: $7.14M

Working Capital and Cash Flow

As of the end of Q2 2024, Calavo Growers Inc's working capital stood at $129.16M. Key components include cash and cash equivalents of $4.27M and net receivables of $56.14M. The company’s operations generated substantial cash flow, even though exact figures for cash flow from operations, capital expenditure, and free cash flow remain undisclosed.

Financial Position

Calavo Growers Inc holds total assets amounting to $353.41M, with current assets at $262.34M and non-current assets at $91.06M. The company’s total liabilities are $146.08M, comprising current liabilities of $133.18M and non-current liabilities of $12.90M. The firm remains conservatively leveraged with a total debt of $54.84M and a debt-to-equity ratio of 26.45%.

Market Performance Metrics

Calavo Growers Inc’s current market capitalization stands at $444.83M. The Altman Z-score is a healthy 4.76, indicating a low risk of bankruptcy. The Piotroski Score of 3, however, suggests a need for improvement in financial strength and operational efficiency.

Peer Comparison and Ratios

In comparison to its peers, Calavo Growers Inc demonstrates competitive logistic capabilities with an inventory turnover ratio of 17.84 times, notably higher than the peer average. However, the company lags behind in profit margins and return ratios. For instance, its gross profit margin of 11.04% is significantly lower than the industry average of 16.43% and the best performer, Sysco Corp, at 18.45%.

In terms of liquidity, Calavo Growers Inc maintains a current ratio of 196.98%, which is robust yet lower than the best performing peer, G. Willi-Food International, Ltd., at 1077.25%. The quick ratio is 45.36%, pointing to moderate liquidity when compared to the industry.

Conclusion

Calavo Growers Inc has demonstrated stability during Q2 2024, showing growth in key financial metrics. However, there is room for improvement in terms of profitability margins and operational efficiency. Continued focus on cost management, better utilization of assets, and strategic investments could potentially enhance future performance outcomes.

For further details, the complete report can be accessed here.