Mission Produce, Inc. reported its financial results for the fiscal third quarter ended July 31, 2022 with the following highlights:
- Total revenue of $313.2 million, a 27% increase driven by average selling price increases of 42%, partially offset by a 11% decrease in avocado volume sold.
- Net income of $18.4 million, identical to same period last year.
- Adjusted net income of $18.9 million compared to $19.1 million for the same period last year.
- Adjusted EBITDA of $31.6 million compared to $30.1 million for the same period last year.
- Appointed Tim Bulow as President and Chief Operating Officer.
CEO message
“We produced strong revenue growth in the third quarter due to sustained strength in pricing amid lower industry supply. We achieved robust per-unit margins in the third quarter, demonstrating the flexibility of our diversified global sourcing platform which helps offset volatility from Mexican source markets,” commented Steve Barnard, Founder and CEO of Mission Produce.
“Our Peruvian farming operations are performing well this season, and we expect to produce approximately 15% more volume than what we achieved in fiscal 2021. Reliable access to our owned fruit during the transitional Mexican season allows us to make long-term commitments to our retail partners. We are well positioned heading into our fourth quarter and expect that industry supply constraints will ease, causing some softening of the pricing environment which has historically led to improving consumption trends across global markets."
Consolidated financial review
Total revenue for the third quarter of fiscal 2022 increased 27% to $313.2 million, as compared to $246.8 million for the same period last year. Growth was driven by a 42% increase in average per-unit avocado sales prices due to lower industry supply out of Mexico, as well as inflationary pressures. Partially offsetting price gains was a decrease in avocado volume sold of 11%, which was primarily driven by lower Mexican supply. Domestic volumes declined at a lower rate relative to export markets for the period, demonstrating the resiliency of demand for avocados amid higher price points in the U.S. market.
Gross profit for the third quarter increased $1.7 million or 4%, to $42.6 million, and gross profit percentage decreased 300 basis points to 13.6% of revenue. The increase in gross profit was primarily driven by higher per-unit margin, partially offset by the impact of lower avocado volume sold.
Outlook 4th quarter:
- Avocado volumes are expected to increase sequentially, primarily due to ample Peruvian product in the supply chain, along with the transition to the new Mexican crop, which is expected to be larger than the prior year.
- Pricing peaked early in third quarter and based on the expectation for sequentially improving industry volumes, it is expected to continue to soften further during fiscal fourth quarter.
Click here for the full report.
For more information:
Jenna Aguilera
Mission Produce, Inc.
press@missionproduce.com
www.missionproduce.com