Mission Produce "back on track" as per-box margins recover in Q2
Mission Produce has posted a strong uptick in revenue for the second financial quarter along with a drop in net income due in part to lower volumes.
Total revenue for the avocado and mango company rose by 18 percent year-on-year to $278.1 million, impacted by average selling price increases of 44 percent, partially offset by a 19 percent decrease in avocado volume sold.
Net income came in at $2.4 million, compared to $7.4 million for the same period last year.
“I’m pleased with our ability to get the business back on track quickly following the temporary operational challenges associated with our ERP implementation in the first quarter. Our per-box margins have recovered and returned to the high-end of normal historical ranges,” commented Steve Barnard, Founder and CEO, Mission Produce.
He explained that the fresh avocado market realized record-high per unit sales pricing during fiscal second quarter which is the result of a smaller Mexican harvest and lower industry volumes.
"Consumer demand remains strong. The volume constraints the industry faces are due to lack of supply which Mission is uniquely able to address through our strategy to invest in vertical integration," he said.
"Specifically, our owned Peruvian production gives us reliable access to fruit to meet customer needs on a scale and at volumes that only Mission can deliver. We are well positioned to leverage these capabilities in the second half of our fiscal year when our owned Peruvian production comes online and typically contributes to a significant step-up in adjusted EBITDA generation.
"In addition, we continue to invest in owned farms in Guatemala and Columbia which we expect to further bolster Mission’s ability to supply year-round fruit to our customers over the long term."