Mission Produce, Inc. reported its financial results for the fiscal first quarter ended January 31, 2022.
Highlights:
- Total revenue of $216.6 million, a 25 percent increase compared to the same period last year, impacted by average selling price increases of 50 percent, partially offset by an 18 percent decrease in avocado volume sold, compared to the same period last year
- Net loss of $(13.4) million, or $(0.19) per diluted share, compared to net income of $2.2 million, or $0.03 per diluted share, for the same period last year
- Adjusted net loss of $(12.2) million, or $(0.17) per diluted share, compared to adjusted net income of $7.9 million, or $0.11 per diluted share, for the same period last year
- Adjusted EBITDA of $(10.4) million compared to $12.5 million for the same period last year
First quarter 2022 results were negatively impacted by several factors, including rapidly rising fruit costs, transportation rates and declining volumes across the industry. These challenges were amplified by enterprise resource planning (“ERP”) system implementation issues which prevented a quick response to these issues.
Operational challenges
“We are disappointed in our fiscal first-quarter performance where we experienced greater than anticipated operational challenges associated with our ERP system conversion on November 1, 2021. Its implementation caused operational issues that temporarily limited our ability to manage our business and operations efficiently and eroded our ability to drive the per-unit margins we have historically generated,” said Steve Barnard, founder and CEO, Mission Produce. “While this was a difficult transition, it was a necessary infrastructure upgrade to ensure we have the systems in place to manage our growing global presence – in terms of new sources of supply and our expanding global customer base. We are confident in our ability to execute on our strategic growth plans as we continue to put the challenges we faced with the implementation behind us.”
Total revenue for first quarter of fiscal 2022 increased 25 percent to $216.6 million, compared to $173.2 million for the same period last year. Growth was driven by a 50 percent 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 an 18 percent decrease in avocado volume sold.
For the second quarter of fiscal year 2022, Mission is providing the following industry update:
- The industry expects second quarter Mexico volumes to remain lower than prior year by amounts comparable to those experienced in the first quarter of 2022, primarily due to supply constraints associated with the Mexican harvest.
- Pricing is expected to be slightly higher on a sequential basis, which implies a year-over-year increase of approximately 10 to 15 percent compared to the $1.42 per pound average experienced in second quarter of fiscal 2021.
- February per-box margins have returned to historical levels, though Mission is still experiencing higher non-ERP related costs.
For more information:
Denise Junqueiro
Mission Produce, Inc.
[email protected]
www.missionproduce.com
