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Segment Information
12 Months Ended
Oct. 31, 2023
Segment Information  
Segment Information

10. Segment Information

Calavo operates in two segments, Grown and Prepared. The Grown segment consists of fresh avocados, tomatoes and papayas. The Prepared segment comprises all other products including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, and guacamole sold at retail and food service as well as avocado pulp sold to foodservice.

These two business segments are presented based on how information is used by our Chief Executive Officer (our Chief Operating Decision Maker) to measure performance and allocate resources. Selling, general and administrative expenses, as well as other non-operating income/expense items, are evaluated by our Chief Executive Officer in the aggregate. We do not allocate assets, or specifically identify them, to our operating segments. Prior year information has been recast to conform with the new segment disclosures.

The following table sets forth sales, cost of sales, and gross profit by segment (in thousands)

    

    

    

Intersegment

    

Grown

Prepared

Elimins.

Total

(All amounts are presented in thousands)

Year ended October 31, 2023

Net sales

$

529,025

$

444,552

$

(1,629)

$

971,948

Cost of sales

476,862

426,759

(1,629)

901,992

Gross profit

$

52,163

$

17,793

$

$

69,956

Year ended October 31, 2022

Net sales

$

700,270

$

492,868

$

(2,065)

$

1,191,073

Cost of sales

650,105

469,188

(2,065)

1,117,228

Gross profit

$

50,165

$

23,680

$

$

73,845

For fiscal year 2023, 2022 and 2021, intersegment sales and cost of sales of $1.6 million, $2.1 million and $2.5 million, respectively, between Grown and Prepared were eliminated.

The following table sets forth sales by product category, by segment (in thousands):

Year ended October 31, 2023

Year ended October 31, 2022

    

    

    

    

    

    

Grown

Prepared

Total

Grown

Prepared

Total

Avocados

$

466,385

$

$

466,385

$

645,944

$

$

645,944

Tomatoes

 

56,298

 

 

56,298

 

47,288

 

 

47,288

Papayas

 

10,432

 

 

10,432

 

11,422

 

 

11,422

Other fresh income

 

100

 

 

100

 

123

 

 

123

Fresh-cut products

383,028

383,028

426,161

426,161

Guacamole

 

70,611

 

70,611

 

 

74,970

 

74,970

Salsa

 

 

796

 

796

 

 

1,860

 

1,860

Total gross sales

 

533,215

 

454,435

 

987,650

 

704,777

 

502,991

 

1,207,768

Less sales allowances

 

(4,190)

 

(9,883)

 

(14,073)

 

(4,507)

 

(10,123)

 

(14,630)

Less intersegment eliminations

(1,629)

(1,629)

(2,065)

(2,065)

Net sales

$

527,396

$

444,552

$

971,948

$

698,205

$

492,868

$

1,191,073

Year ended October 31, 2022

Year ended October 31, 2021

    

    

    

    

    

    

Grown

Prepared

Total

Grown

Prepared

Total

Avocados

$

645,944

$

$

645,944

$

536,969

$

$

536,969

Tomatoes

 

47,288

 

 

47,288

 

43,658

 

 

43,658

Papayas

 

11,422

 

 

11,422

 

10,884

 

 

10,884

Other fresh income

 

123

 

 

123

 

693

 

 

693

Fresh-cut products

426,161

426,161

403,017

403,017

Guacamole

74,970

74,970

75,681

75,681

Salsa

 

 

1,860

 

1,860

 

 

2,784

 

2,784

Total gross sales

 

704,777

 

502,991

 

1,207,768

 

592,204

 

481,482

 

1,073,686

Less sales allowances

 

(4,507)

 

(10,123)

 

(14,630)

 

(3,677)

 

(11,682)

 

(15,359)

Less intersegment eliminations

(2,065)

(2,065)

(2,497)

(2,497)

Net sales

$

698,205

$

492,868

$

1,191,073

$

586,030

$

469,800

$

1,055,830

Sales to customers outside the U.S. were approximately $34.6 million, $27.8 million and $34.8 million for fiscal years 2023, 2022, and 2021, respectively.

Prepared segment sales included sales to two customers who represented more than 10% of total consolidated revenues for fiscal 2023. Prepared segment sales included sales to one customer who represented more than 10% of total consolidated revenues for fiscal 2022 and 2021. Additionally, the Grown products segment had sales to one customer that represented more than 10% of total consolidated revenues for fiscal 2021.

Our goodwill balance of $28.7 million is attributed by segment to Grown for $4.0 million and Prepared for $24.7 million as of October 31, 2023 and 2022, respectively.

Long-lived assets attributed to geographic areas as of October 31, are as follows (in thousands):

    

United States

    

Mexico

    

Consolidated

October 31, 2023

$

77,791

$

34,938

$

112,729

October 31, 2022

$

77,208

$

36,102

$

113,310