Mission Produce has reported a year-on-year drop in revenue and net income for its fourth quarter ended Oct. 31, 2020, which saw significantly lower average selling prices.

The California-based avocado company completed an initial public offering (IPO) in October 2020, with 7.5 million shares sold at $12.00, and net proceeds of $78.1 million.

It said that in the fourth quarter, total revenue fell by 11% to $206.8 million. The decrease in revenue was driven by lower average selling prices, which declined 24%, partially offset by volume growth of 16%.

Gross profit decreased 7% compared to the prior year period to $39.5 million, while gross profit margin improved 70 basis points to 19% of revenue. The increase in gross profit margin was attributable to a reduction of field costs in Mexico.

Net income of $18.8 million compared to $23.9 million for the comparable period last year, while adjusted EBITDA of $32.1 million compared to $36.8 million.

Steve Barnard, Chief Executive Officer of Mission Produce, commented: “I’m extremely proud of the organization we’ve built over the past 37 years and our #1 global leadership position in the industry.

"Our October IPO was yet another milestone for our company and we are pleased to be in a position to continue pursuing the significant growth opportunity that lies ahead.

"We have a leading global infrastructure that we continue to invest behind, which enables Mission to address the consumption trends that are driving our business both domestically and abroad. We look forward to growing this category through our year-round distribution capabilities and meet consumer demand for this popular Superfood."