Calavo Growers (NASDAQ: CVGW) expects revenues and earnings to reach new highs in 2015, buoyed by an estimated 20% rise in domestic avocado consumption to reach more than two billion pounds in total, as well as through growth in its Calavo Foods and Renaissance Food Group (RFG) segments.

The forecast was announced today in the company's fiscal 2014 fourth quarter and full-year results, which included a 21% rise in gross margin to US$73 million for the year and 5% revenue growth for the quarter.

"In sum, it was an outstanding final quarter and year for Calavo as measured by our formidable results from operations. Our company posted strong final-quarter results to cap a record-breaking fiscal 2014, during which all important metrics reached new historic highs," CEO Lee Cole said in a release.

"Of particular note, Calavo's operating performance in the most-recent period reflects the beneficial impact of sourcing and marketing Mexico-grown avocados, which improved Fresh business segment gross margin and counterbalanced the cyclically smaller harvest of California fruit.

"We registered sharply improved gross margin in our Calavo Foods business segment—a result of favorable fruit and production costs, as well as significant year-over-year improvement in segment sales—which further contributed to the uptick in overall company gross margin."

He added that the RFG segment notched 31% year-on-year growth in the fourth quarter.

"RFG continues to execute impressively—penetrating the retail grocery channel with its broad line of refrigerated fresh packaged goods. Its operating performance made significant incremental contribution to Calavo’s top and bottom lines during fiscal 2014.

"On the strength of Calavo’s record-breaking operating results, we were able to once again affirm management’s commitment to delivering the highest possible shareholder returns, increasing the annual cash dividend on our common stock by seven percent to $0.75 per share."

The executive said all indicators were "pointing affirmatively" in 2015.

"By all industry and company expectations, fresh avocado consumption is expected to resume its upward advance in the coming year after a 'breather' in 2014 from the dramatic growth of the past decade. According to industry forecasts, U.S. fresh avocado consumption, based on the all-source avocado availability from California, Mexico and South America, is on track to exceed two billion pounds in the current year," he said.

"With our avocado market leadership—strong sourcing capabilities, sales and distribution expertise, and the vast breadth of resources Calavo brings to bear—we will be beneficiaries of the upward consumption trendline.

"The consistently large Mexico crop, an expected resurgent California avocado harvest, which adversely affected the all-source fruit supply last year and, most importantly, strong consumer demand, all point to a brightening picture for fiscal 2015."

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