SANTA PAULA, Calif. - Calavo Growers , Inc. (NASDAQ:CVGW), known for its distribution of avocados and other produce, announced the appointment of James Snyder as its new Chief Financial Officer beginning December 2. This change comes as the current CFO, Shawn Munsell, departs on November 29 to pursue a new opportunity.
James Snyder, who has a long history with Calavo, previously serving as Corporate Controller and Chief Accounting Officer for over 18 years, returns to the company after a brief tenure at Gem-Pack Berries. His extensive experience with the company and prior roles at Nano Banc and Deloitte are expected to be beneficial for his upcoming tenure as CFO.
President and CEO Lee Cole expressed enthusiasm for Snyder's return, highlighting his familiarity with the company's financial division. Cole also acknowledged Munsell's contributions to Calavo during his service and wished him success in his future endeavors.
Snyder's return to Calavo is described as a "homecoming," as he expressed eagerness to contribute to the company's forward momentum. His past involvement with Calavo and subsequent roles in the industry provide a foundation for his new responsibilities.
Calavo Growers, Inc., founded in 1924, has established itself as a major player in the processing and distribution of avocados, tomatoes, papayas, and guacamole. The company boasts a culture of innovation and sustainable practices, serving a wide range of customers including retail grocery, foodservice, and wholesalers globally.
The announcement is based on a press release statement and comes amid Calavo's continued efforts to maintain its leadership in the fresh produce market. The company has stated that these forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations.
In other recent news, Calavo Growers, Inc. reported better-than-expected third-quarter results, with adjusted earnings of $0.57 per share, surpassing analyst estimates of $0.47 per share. Revenue rose 11.7% year-over-year to $179.6 million, exceeding the expected $178.5 million. The company's Grown segment, including avocados, saw sales increase 13.3% to $163.2 million, with the company noting strong avocado margins despite temporary supply disruptions from Mexico. However, the Prepared segment experienced a slight dip in sales by 2.4% to $16.4 million due to higher fruit input costs, although volume increased by 7%. In addition to these developments, Calavo announced it is doubling its quarterly dividend to $0.20 per share, attributing this decision to improvements in financial performance. The company anticipates solid financial results for the fourth quarter and the full fiscal year, indicating continued momentum in its operations.
InvestingPro Insights
As Calavo Growers, Inc. (NASDAQ:CVGW) welcomes back James Snyder as CFO, investors may find additional context from recent financial data and expert analysis. According to InvestingPro, Calavo's market capitalization stands at $492.21 million, reflecting its significant presence in the produce distribution industry.
Despite recent leadership changes, Calavo has demonstrated resilience in certain areas. An InvestingPro Tip highlights that the company has maintained dividend payments for 23 consecutive years, showcasing a commitment to shareholder returns. This consistency may provide some reassurance to investors during the transition period.
However, the company faces challenges. The gross profit margin for the last twelve months as of Q3 2024 was 7.23%, which InvestingPro identifies as a weak point. This aligns with another InvestingPro Tip indicating that Calavo suffers from weak gross profit margins, a factor that the new CFO may need to address.
On a positive note, InvestingPro data shows a strong revenue growth of 45.46% over the last twelve months as of Q3 2024, reaching $1.01 billion. This growth trajectory could provide Snyder with a solid foundation to build upon as he steps into his new role.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Calavo Growers, providing a deeper understanding of the company's financial health and market position.
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