Calavo Growers Inc (CVGW)
Gross profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 69,956 | 73,845 | 57,425 | 89,898 | 128,082 |
| Revenue | US$ in thousands | 967,829 | 1,188,450 | 1,063,150 | 1,022,360 | 1,197,400 |
| Gross profit margin | 7.23% | 6.21% | 5.40% | 8.79% | 10.70% |
October 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $69,956K ÷ $967,829K
= 7.23%
The gross profit margin of Calavo Growers, Inc has exhibited variability over the past five years. In 2019, the gross profit margin stood at 10.71%, indicating a strong ability to generate profit from its core operations. However, this figure decreased to 8.49% in 2020, possibly suggesting increased cost of goods sold or pricing pressures. Subsequently, the margin further declined to 5.44% in 2021, indicating potential challenges in maintaining profitability.
The company managed to improve its gross profit margin to 6.20% in 2022 and further to 7.20% in 2023. This improvement suggests the implementation of cost control measures or a shift in product mix toward higher margin offerings. However, the margin still remains lower than the 2019 level, indicating that the company may still be facing challenges in efficiently managing its cost of goods sold.
Overall, the upward trend in the most recent years is an encouraging sign, but Calavo Growers, Inc may need to continue focusing on strategies to maintain or improve its gross profit margin in the future.