CALAVO GROWERS INC Segments Disclosure
10. Segment Information
Prior to the decision to divest our Fresh Cut Business (formerly referred to as the RFG business), the Company’s Prepared reporting segment included the Fresh Cut Business unit and our guacamole business. As a result of the divestiture, the Fresh Cut Business unit is no longer included in our Prepared business segment and is not included in the tables below. All segment information included herein reflects these changes. See Note 16 for further information.
We are principally engaged in the procurement, marketing, and distribution of fresh and prepared avocado products. While the majority of our sales are within the United States, we also serve international markets including Canada, Mexico, Europe, and Asia. Our key sourcing and production operations are located in the United States and Mexico.
Our business is comprised of two reportable segments, both of which represent our primary businesses of fresh produce and prepared avocado products.
| ● | Fresh — includes avocados, tomatoes, papayas, and other fresh produce products. |
| ● | Prepared — includes guacamole and avocado pulp sold to retail and foodservice customers. |
Our Chief Operating Decision Maker ("CODM") is our Chief Executive Officer. The CODM uses segment gross profit, calculated as net sales less cost of sales, as the primary measure in assessing segment performance and determining allocation of resources, with these determinations generally made as part of our annual budgeting process. Reviews of segment performance by the CODM occur regularly throughout the year, including quarterly review of budget-to-actual results, which can result in allocation changes if deemed appropriate. The CODM does not evaluate, manage or measure performance of segments using asset information. Accordingly, assets by segment are not disclosed.
The following table provides information by reportable segment, including net sales, cost of sales, and gross profit:
| | | |||||||
Fresh | Prepared | Total | |||||||
(All amounts are presented in thousands) | |||||||||
Year ended October 31, 2025 | |||||||||
Net sales | $ | 576,544 | $ | 71,890 | $ | 648,434 | |||
Cost of sales | 530,235 | 54,536 | 584,771 | ||||||
Gross profit | 46,309 | 17,354 | 63,663 | ||||||
Selling, general and administrative | 42,089 | ||||||||
Expenses related to Mexican tax matters | 1,963 | ||||||||
Operating Income | 19,611 | ||||||||
Foreign currency gain (loss) | 1,803 | ||||||||
Interest income | 3,240 | ||||||||
Interest expense | (827) | ||||||||
Other income, net | 1,003 | ||||||||
Income before income taxes and loss from unconsolidated entities | $ | 24,830 | |||||||
Year ended October 31, 2024 | |||||||||
Net sales | $ | 597,624 | $ | 63,920 | $ | 661,544 | |||
Cost of sales | 542,356 | 51,384 | 593,740 | ||||||
Gross profit | 55,268 | 12,536 | 67,804 | ||||||
Selling, general and administrative | 50,038 | ||||||||
Expenses related to Mexican tax matters | 1,043 | ||||||||
Operating Income | 16,723 | ||||||||
Foreign currency gain (loss) | (5,840) | ||||||||
Interest income | 1,020 | ||||||||
Interest expense | (2,893) | ||||||||
Other income, net | 641 | ||||||||
Income before income taxes and loss from unconsolidated entities | $ | 9,651 | |||||||
Year ended October 31, 2023 | |||||||||
Net sales | $ | 527,396 | $ | 66,706 | $ | 594,102 | |||
Cost of sales | 476,862 | 54,628 |
| 531,490 | |||||
Gross profit | 50,534 | 12,078 | 62,612 | ||||||
Selling, general and administrative | 47,276 | ||||||||
Expenses related to Mexican tax matters | 3,128 | ||||||||
Operating Income | 12,208 | ||||||||
Foreign currency gain (loss) | 1,378 | ||||||||
Interest income | 605 | ||||||||
Interest expense | (2,371) | ||||||||
Other income, net | 260 | ||||||||
Income before income taxes and loss from unconsolidated entities | $ | 12,080 | |||||||
The following table indicates our net sales by product category (U.S. dollars in thousands), and, in each case, the percentage of total represented thereby:
Year Ended |
| ||||||||||||||||||
Segments | October 31, 2025 | October 31, 2024 | October 31, 2023 |
| |||||||||||||||
Fresh | | |
| ||||||||||||||||
Avocados | $ | 530,707 | 82% | $ | 534,413 | 81% | $ | 466,385 | $ | 79% | |||||||||
Tomatoes |
| 35,492 |
| 5% |
| 54,660 |
| 8% |
| 54,669 |
| 9% | |||||||
Papayas and other |
| 12,566 |
| 2% |
| 11,581 |
| 2% |
| 10,532 |
| 2% | |||||||
Less: sales allowances | (2,221) | 0% | (3,030) | 0% | (4,190) | (1)% | |||||||||||||
Total Fresh sales |
| 576,544 |
|
| 597,624 |
|
| 527,396 |
| ||||||||||
Prepared | 77,130 | 12% | 71,468 | 11% | 73,864 | 12% | |||||||||||||
Less: sales allowances | (5,240) | (1)% | (7,548) | (1)% | (7,158) | (1)% | |||||||||||||
Total Prepared sales | 71,890 | 63,920 | 66,706 | ||||||||||||||||
Total net sales | $ | 648,434 |
| 100% | $ | 661,544 | 100% | $ | 594,102 | 100% | |||||||||
The following table indicates our net sales by geographic region (U.S. dollars in thousands), and, in each case, the percentage of total represented thereby:
Year Ended | ||||||||||||||||||
October 31, 2025 | October 31, 2024 | October 31, 2023 | ||||||||||||||||
| | |||||||||||||||||
United States | $ | 593,768 | 92% | $ | 622,858 | 94% | $ | 557,876 | 94% | |||||||||
Canada |
| 36,210 |
| 6% |
| 21,238 |
| 3% |
| 20,318 |
| 3% | ||||||
Europe |
| 1,589 |
| 0% |
| 1,237 |
| 0% |
| 3,104 |
| 1% | ||||||
Asia |
| 16,222 |
| 3% |
| 15,075 |
| 2% |
| 12,582 |
| 2% | ||||||
Other | 645 | 0% | 1,136 | 0% | 222 | 0% | ||||||||||||
Total net sales | $ | 648,434 | 100% | $ | 661,544 | 100% | $ | 594,102 | 100% | |||||||||
We conduct a substantial portion of our sourcing and production activities in Mexico, which exposes us to risks inherent in operating internationally, including regulatory and trade compliance, currency volatility, infrastructure challenges, and evolving government policies. These risks may affect our ability to operate efficiently or predictably in the region.
Our largest customer accounted for 10% of our net sales in 2025, 10% of net sales in 2024 and 10% in 2023. These sales are reported in both Fresh and Prepared segments.
The following table indicates our long-lived assets, which consists of (i) property, plant, and equipment, net, by geographic region (U.S. dollars in thousands):
| Year Ended | |||||
October 31, 2025 | October 31, 2024 | |||||
United States | $ | 21,714 | $ | 24,531 | ||
Mexico | 27,721 | 29,669 | ||||
Total | $ | 49,435 | 54,200 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 14, 2026 | Showing above |
| 2024 | Jan 14, 2025 | |
| 2023 | Jan 31, 2024 | |
| 2022 | Dec 20, 2022 | |
| 2021 | Dec 21, 2021 | |
| 2020 | Dec 21, 2020 | |
| 2019 | Dec 19, 2019 | |
| 2018 | Dec 20, 2018 | |
| 2017 | Dec 22, 2017 | |
| 2016 | Dec 23, 2016 | |
| 2015 | Dec 30, 2015 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.