Mission Produce, Inc., a prominent company in sourcing, producing, and distributing fresh avocados, today reported its financial results for the fiscal third quarter ended July 31, 2021.
Fiscal Third Quarter 2021 Highlights:
- Total revenue of $246.8 million, a 4% increase compared to the same period last year
- Avocado volume sold increased 2%, average selling price increased 2% compared to the same period last year
- Gross profit was $40.9 million, and gross profit percentage decreased 210 basis points, to 16.6% of revenue
- Net income of $18.4 million, or $0.26 per diluted share compared to $23.4 million, or $0.37 per diluted share, for the same period last year
- Adjusted net income of $19.1 million, or $0.27 per diluted share, compared to $24.4 million, or $0.39 per diluted share, for the same period last year
- Adjusted EBITDA of $30.1 million, a decrease of 18% compared to $36.6 million for the same period last year
Fiscal Third Quarter 2021 Consolidated Financial Review
Total revenue for the third quarter of fiscal 2021 was $246.8 million compared to $236.4 million for the same period last year, representing a 4% increase, primarily due to a 2% increase in avocado volume sold and 2% increase in average per-unit avocado sales prices. From a volume perspective, strength in industry supply out of Mexico was largely offset by a smaller California crop.
Gross profit decreased 7% compared to the same period last year to $40.9 million, and gross profit percentage declined 210 basis points to 16.6% of revenue. The declines were due to tighter per-unit margins related to sourcing of Californian and Mexican fruit, which were exacerbated by smaller industry volumes within the California market as well as smaller fruit sizes within the Mexican market. Additionally, gross margin was pressured by incremental infrastructure costs related to our new Laredo facility within the Marketing & Distribution segment, which is still in the process of ramping up utilization. The impact was partially offset by higher volume of avocados sold from Company-owned farms within our International Farming segment compared to prior year, which had lower per-unit cost than fruit purchased from third-party growers.
Selling, general and administrative expense (“SG&A”) for the third quarter increased $3.7 million to $17.2 million, due primarily to higher professional fees and higher liability insurance premiums associated with being a public company. Higher professional fees were primarily related to our anticipated change in SEC filer status from an emerging growth company to a large accelerated filer on October 31, 2021.
Net income for the third quarter of fiscal 2021 was $18.4 million, or $0.26 per diluted share. This compares with $23.4 million, or $0.37 per diluted share, for the same period last year.