Mission Produce posts 24 percent revenue drop for Q2 2026

Mission Produce posted total revenue of $290.9 million for Q2 2026, a 24 percent drop from the same period last year. 

The decrease, the company said in a press release, was primarily driven by a 36 percent decrease in per-unit avocado sales prices

John Pawlowski, President and CEO of Mission, explained that the company was able to maintain manageable margins amid a mismatch between customer demand and Mexico’s supply of core fruit sizes during the season’s final weeks. However, the executive is optimistic about a rebound in market conditions. 

“Importantly, supply conditions have improved, pricing and margins are recovering, and we expect to deliver solid performance in the back half of the year,” the executive said. 

The silver lining, Pawlowski noted, is that temporary low prices helped lay the groundwork for more robust demand. The executive emphasized that US avocado consumption and household penetration reached record highs, with over 1.6 million new households entering the category and a 15 percent increase in avocado volume sold, which partially offset lower prices.

“As we’ve seen in the past, dynamics like these create a larger and more durable demand base, and as a category leader, Mission is positioned to capitalize on these trends going forward,” he added. 

Gross profit was $20.5 million in the second quarter of fiscal 2026, 28 percent lower than the same period in 2025, when the company posted $28.4 million. Meanwhile, gross margin decreased 50 basis points from the same period last year, to seven percent of revenue. 

“Gross profit in the Marketing & Distribution segment was lower primarily due to historically low prices and a mismatch in supply and demand for core fruit sizes in April, which further pressured per-unit margins,” read the company statement. 

The company also explained lower gross profit in the International Farming segment due to “lower [blueberry] harvest volumes combined with higher per-unit mango production costs.”

Total blueberry sales fell 30 percent year-on-year in Q2, amounting to $11 million. The drop, the firm said, was primarily due to a decrease in volume sold, partially offset by increases in average per-unit sales price.

Mission’s outlook for Q3

For the next quarter, Mission Produce says it expects avocado volumes to increase by up to 10 percent versus the prior year period. 

Likewise, the company expects exportable production from its farms in Peru to range between 120 and 130 million pounds. 

“Pricing is expected to be lower on a year-over-year basis by approximately 15 percent,” the firm continued. “The decrease in pricing is directly correlated with expectations of higher volumes available in US and international markets.”

*All images courtesy of Mission Produce | Archive. 

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