Calavo Growers, Inc. Announces First Quarter 2026 Financial Results (Form 8-K)

Calavo Growers, Inc. Announces First Quarter 2026 Financial Results

SANTA PAULA, Calif., March 12, 2026 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW) ("Calavo" or the "Company"), a global leader in sourcing, packing and distribution of fresh avocados, tomatoes, papayas and processing of guacamole and other avocado products, today reported its financial results for the first fiscal quarter ended January 31, 2026.

Comparison of First Quarter of Fiscal Year 2026 vs. Prior Year Period

Adjusted net income, Adjusted net income per diluted share, and Adjusted EBITDA are non-GAAP financial measures. See "Non-GAAP Financial Measures" at the end of this press release for additional information, definitions, and reconciliations to the most directly comparable GAAP financial measures.

Management Commentary

"Across the first fiscal quarter, we saw sequential improvement in both our Fresh and Prepared segments," said B. John Lindeman, President and Chief Executive Officer of Calavo. "In Fresh, we executed well around seasonal demand, including Super Bowl-related retail opportunities, increasing sales volumes substantially over the prior year while maintaining solid per-unit margins in a pressured pricing environment. Our Prepared segment continued to demonstrate strong momentum in the quarter. Our quarterly sales volumes increased more than 20% over the prior year as our team successfully onboarded new customers, expanded several existing relationships, and benefited from the contribution of newer retail offerings. We also continued to manage SG&A expenses, which, when adjusted for M&A related expenses and other non-recurring expenses, were down over the prior year."

"Looking ahead to the second fiscal quarter, we expect volume growth across both segments and believe our scale, customer relationships, and margin discipline position us well to navigate a dynamic pricing environment. We anticipate the fresh avocado pricing environment will remain pressured, primarily due to a large Mexican crop."

"We are also making progress on our previously announced merger with Mission Produce. We completed several required merger related filings, including our initial antitrust submissions in the U.S. and Mexico, and a preliminary joint proxy statement. We remain focused on closing the transaction in the third fiscal quarter of 2026, subject to regulatory and shareholder approvals."

First Quarter 2026 Overview

Net sales decreased to $122.2 million as compared to $154.4 million from the prior year quarter. Fresh segment sales were $104.7 million, a 25% decrease from the prior year quarter. The lower sales primarily reflect a 35% decline in average avocado selling prices, partially offset by a 17% increase in avocado carton volume, which we believe slightly outpaced the broader industry increase. Fresh segment sales were also impacted by a 48% decline in tomato sales, driven by lower carton volumes and average selling prices. Prepared segment sales were $17.5 million, a 20% increase from the prior year quarter, primarily due to a 21% increase in pounds sold. The improvement in the Prepared segment reflects expanded sales to existing customers and new customer wins across retail and foodservice channels.

Gross profit was $15.2 million, or 12% of net sales, compared to $15.7 million, or 10% of net sales, in the prior year quarter. Fresh segment gross profit was $10.3 million, a 15% decrease from the prior year quarter, primarily reflecting lower avocado selling prices and lower tomato volumes and pricing during the quarter. Prepared segment gross profit increased to $4.9 million, a 36% increase from the prior year quarter, primarily reflecting higher sales volumes, lower fruit input costs, and improved operating efficiencies.

Selling, general, and administrative ("SG&A") expenses totaled $16.4 million for the first fiscal quarter, compared to $10.3 million in

the prior year quarter. SG&A in the current quarter included approximately $7.2 million of non-recurring expenses, primarily consisting of $4.9 million of transaction-related costs, $1.2 million of non-recurring stock-based compensation, $0.6 million related to a Fresh Cut Business (divested in the fourth fiscal quarter of 2024) legal settlement, and $0.5 million of onboarding costs related to senior leadership changes and other items.

Adjusted net income was $4.8 million, or $0.27 per diluted share, compared to $6.3 million, or $0.35 per diluted share, in the prior year quarter. Adjusted EBITDA was $8.0 million, compared to $9.3 million in the prior year quarter.

Balance Sheet, Liquidity and Cash Flow

We ended the first quarter with cash and cash equivalents of $47.7 million and $79.8 million in available liquidity, which we define as cash and cash equivalents plus available borrowing capacity under our revolving credit facility. As of January 31, 2026, we had no borrowings under our credit facility and total debt of $3.9 million, consisting of other long-term obligations and finance leases. Cash used in operating activities totaled $8.7 million for first fiscal quarter of 2026.

Merger with Mission Produce, Inc.

As previously disclosed on January 14, 2026, Calavo Growers, Inc. entered into an Agreement and Plan of Merger with Mission Produce and certain subsidiaries of Mission Produce (the "Merger Agreement"). There have been no material changes to the terms of the Merger Agreement during the three months ended January 31, 2026. The Board of Directors of both companies have approved the transaction, which is expected to close in the third fiscal quarter of 2026, subject to the receipt of required regulatory approvals, the approvals of Mission Produce stockholders and Calavo shareholders, and the satisfaction of other customary closing conditions.

About Calavo Growers, Inc.

Calavo Growers, Inc. (Nasdaq: CVGW) is a global leader in the processing and distribution of avocados, tomatoes, papayas and guacamole. Calavo products are sold under the trusted Calavo brand name, proprietary sub-brands, private label and store brands. Founded in 1924, Calavo has a rich culture of innovation, sustainable practices and market growth. The Company serves retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide. Calavo is headquartered in Santa Paula, California, with facilities throughout the U.S. and Mexico. Learn more about The Family of Fresh™ at calavo.com.