Mission Produce, Inc., which sources, produces and distributes fresh avocados, reported its financial results for the fiscal second quarter ended April 30, 2021.
“We posted strong fiscal second quarter adjusted EBITDA of $16.3 million, which was a 13 percent increase versus prior year. Our blue-chip customer base and the flexibility our network provides allowed us to distribute 22 percent greater volume than prior year,” says Steve Barnard, chief executive officer of Mission Produce.
“Looking ahead to the second half of fiscal 2021, we transition into the southern hemisphere season where our Peruvian harvest comes online. The growing season was very productive and we expect solid yields from our crop and with prices firming up. For the third quarter-to-date period, retail pricing is steady, along with consumption patterns versus the prior year.”
Fiscal Second Quarter 2021 Consolidated Financial Review
Total revenue for the second quarter of fiscal 2021 was $234.7 million compared to $221.6 million for the same period last year, representing a 6 percent increase, primarily due to a 22 percent increase in avocado volume sold, partially offset by a 14 percent decrease in average per-unit avocado sales prices. The price and volume dynamics were driven by strong industry supply from Mexico in the second quarter, though sequential monthly pricing improved throughout the quarter. In addition, volume during the prior period was negatively impacted by COVID-19 related stay at-home orders that went into effect in March 2020.
Total International Farming segment sales increased 79 percent to $4.3 million in the three months ended April 30, 2021, primarily due to earlier timing of the avocado harvest season. Net sales increased 10 percent to $2.3 million for the quarter, primarily due to higher packing and cold storage service revenue.
Balance sheet and cash flow
Cash and cash equivalents were $54.2 million as of April 30, 2021 compared to $124.0 million as of October 31, 2020.
Mission’s operating cash flows are seasonal and can be temporarily influenced by working capital shifts resulting from payment timing for Mexican-sourced volume, which have shorter terms than other source markets. Additionally, it is building its growing crops inventory for sale in the first half of the fiscal year that can influence year-over-year changes. These variables can cause quarterly shifts in operating cash flows, but it is not indicative of positive operating cash flow performance that management expects to realize for the full year.
As Mission prepares for its fiscal second half where the business transitions to its owned production in Peru, management has greater visibility to volume and costs. As such, it is providing full fiscal year modeling assumptions for sales, volume and adjusted EBITDA.
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