Benjamin Bienvenu's questions to CALAVO GROWERS (CVGW) leadership • Q1 2023
Question
Benjamin Bienvenu from Stephens Inc. inquired about the consumer demand elasticities observed in the Prepared business and the critical path for volume recovery. He also asked if the current restructuring plans were final and how to think about the trajectory of capital expenditures going forward.
Answer
President and CEO Brian Kocher acknowledged that Prepared segment volume softness exceeded typical seasonality, attributing it to a broader decline in retail food unit volumes as consumers reacted to inflation. He noted that while the company is streamlining operations, it will never be finished making efficiency improvements. Kocher also clarified that the reduced CapEx for 2023 is a matter of fiscal discipline and does not involve cutting high-return growth projects.