Mission Produce Inc · Q2 2023 earnings

Briefing

Financial results for the fiscal second quarter ended April 30, 2023 were announced, revealing a mixed performance driven by deflationary pressure on avocado sales prices and increased sales volumes.

Mission Produce reported a decrease in total revenue by 20% to $221.1 million compared to the same period last year, driven by deflationary pressure on avocado sales prices. The company experienced a net loss of $(4.6) million, or $(0.07) per diluted share, compared to a net income of $2.4 million last year. However, sales volumes increased by 19% year over year, and the company saw sequential improvement in both volumes and per-unit margins relative to the first fiscal quarter.

• Total revenue decreased by 20% to $221.1 million due to deflationary pressure on avocado sales prices.
• Net loss was $(4.6) million, or $(0.07) per diluted share, compared to net income of $2.4 million last year.
• Adjusted EBITDA decreased by 17% to $7.6 million.
• Avocado volume sold increased by 19% compared to the same period last year.

Headline financials

Revenue & EPS history

For the third quarter of fiscal year 2023, the industry expects volumes to be approximately 20% higher versus the prior year period. Pricing is expected to be consistent on a sequential basis, but lower on a year-over-year basis by approximately 35-40% compared to the $2.03 per pound average experienced in third quarter of fiscal 2022.