Calavo Growers, Inc. (CVGW) has reported a 93 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $9.24 million, or $0.53 a share in the quarter, compared with $4.79 million, or $0.28 a share for the same period last year. Revenue during the quarter grew 19.07 percent to $247.66 million from $207.99 million in the previous year period. Gross margin for the quarter expanded 124 basis points over the previous year period to 10.94 percent. Total expenses were 93.74 percent of quarterly revenues, down from 95.80 percent for the same period last year. This has led to an improvement of 207 basis points in operating margin to 6.26 percent.
Operating income for the quarter was $15.51 million, compared with $8.73 million in the previous year period.
Chairman and Chief Executive Officer Lee E. Cole stated "It is extremely gratifying that Calavo registered such a strong performance in the fourth quarter to cap yet another record-breaking year. Our fourth-quarter operating results helped propel full-year revenues, gross margin, net income and EPS to new record levels, including double-digit growth of those latter three metrics. In the final quarter, the company achieved solid revenue increases in each of the company’s three business segments: Fresh, Renaissance Foods Group (RFG) and Calavo Foods."
Working capital increases sharply
Calavo Growers, Inc. has recorded an increase in the working capital over the last year. It stood at $25.61 million as at Oct. 31, 2016, up 35.06 percent or $6.65 million from $18.96 million on Oct. 31, 2015. Current ratio was at 1.23 as on Oct. 31, 2016, up from 1.19 on Oct. 31, 2015. Debt comes down significantly
Calavo Growers, Inc. has recorded a decline in total debt over the last one year. It stood at $19.58 million as on Oct. 31, 2016, down 50.68 percent or $20.12 million from $39.70 million on Oct. 31, 2015. Total debt was 5.97 percent of total assets as on Oct. 31, 2016, compared with 13.93 percent on Oct. 31, 2015. Debt to equity ratio was at 0.09 as on Oct. 31, 2016, down from 0.21 as on Oct. 31, 2015. Interest coverage ratio improved to 107.72 for the quarter from 49.59 for the same period last year.
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