NASDAQ$AVO

Mission Produce Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a 6% increase in total revenue and a 26% increase in gross profit compared to the same period last year.

Mission Produce reported a strong fiscal second quarter with a 6% increase in total revenue to $234.7 million and a 26% increase in gross profit to $27.1 million. Net income was $7.4 million, or $0.10 per diluted share, compared to a net loss of $14.8 million, or $(0.23) per diluted share, for the same period last year. Adjusted EBITDA increased by 13% to $16.3 million.

  • Total revenue increased by 6% to $234.7 million compared to the same period last year.
  • Avocado volume sold increased 22%, while the average selling price decreased 14% compared to the same period last year.
  • Gross profit increased 26% to $27.1 million, with gross profit percentage increasing 180 basis points to 11.5% of revenue.
  • Net income was $7.4 million, or $0.10 per diluted share, compared to a net loss of $14.8 million, or $(0.23) per diluted share, for the same period last year.

Headline financials

Total Revenue

$235M

Previous: $222M+5.9%
EPS (adj)

$0.12

Previous: -$0.21+156.2%
Pounds of avocados sold

163.0M

Previous: 133.9M+21.7%
Capital Expenditures

$24.4M

No prior period
Free Cash Flow

-$34.9M

No prior period
Net Income

$7.4M

Previous: -$14.8M+150.0%
Operating Income

$10.8M

Previous: $10.4M+3.8%
Gross Profit

$27.1M

Previous: $21.5M+26.0%
Cash & Equivalents

$54.2M

No prior period
Stock-Based Comp

$700K

No prior period

Revenue & EPS history

Mission Produce · Revenue · Quarterly

$235M

Q2 2021+5.9%vs Q2 2020
Beat estimate in 4 of 9 quarters(44%)
ActualEstimate

Revenue by segment

Mission Produce · $39.6M total across 2 segments · Q3 2023

  • International Farming
    $38.2M+855.0%
  • Blueberries
    $1.4M+366.7%

Forward guidance

The Company is providing full fiscal year modeling assumptions for sales, volume and adjusted EBITDA.

Tailwinds

  • Full year fiscal 2021 net sales in the range of $900 million to $920 million.
  • Total annual volume in the range of 670 million to 680 million pounds.
  • Expectations for avocado production from owned farms is in the range of 95 million to 105 million pounds.
  • Full year fiscal 2021 adjusted EBITDA in the range of $100 million to $105 million.
  • Greater visibility to volume and costs as the business transitions to owned production in Peru.

Headwinds

  • Future pricing dynamics may influence adjusted EBITDA.
  • Pricing dynamics have a disproportionate impact on profitability of owned production.
  • Limitations regarding the supply of avocados, either through purchasing or growing
  • Fluctuations in market prices of avocados
  • Inherent farming risks

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.8%

Avg return

Earnings day

-1.3%

Avg return

5 days after

-3.4%

Avg return

30 days after

52%

13 / 25 earnings

Positive

+21.1%

Q3 2024

Best reaction

-18.1%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+7.6%+11.0%
Q1 2026-8.2%-5.6%+11.9%
Q4 2025+0.3%-10.4%-5.3%
Q3 2025+1.7%-1.0%-9.0%
Q2 2025+0.0%+1.9%-3.9%
Q1 2025-13.2%-14.5%-17.5%
Q4 2024+14.7%+14.2%-0.9%
Q3 2024+21.1%+22.8%+14.0%
Q2 2024-3.5%-9.7%-15.5%
Q1 2024+9.0%+9.6%+4.1%
Q4 2023+10.4%+14.2%+8.9%
Q3 2023-3.2%+3.1%+5.0%
Q2 2023+6.4%-3.1%-6.0%
Q1 2023-5.4%-4.4%+0.6%
Q4 2022-18.1%-22.9%-20.7%
Q3 2022+0.3%-1.1%-7.3%
Q2 2022+5.3%-0.4%+4.7%
Q1 2022-10.7%-12.9%-2.1%
Q4 2021-11.0%-10.9%-23.8%
Q4 2019-11.0%-10.9%-23.8%
Q3 2021-10.3%-2.9%-7.9%
Q3 2020-10.3%-2.9%-7.9%
Q2 2021+3.5%+2.2%-5.8%
Q1 2021+1.6%-0.7%-6.0%
Q4 2020+3.8%+3.6%+33.1%
Q2 2020
Q1 2020
Q3 2019
Q2 2019
Q1 2019

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