20% increase in avocado sales at Mission Produce
Mission Produce, Inc., a world leader in sourcing, producing, and distributing fresh Hass avocados with additional offerings in mangos and blueberries, announced its financial results for the fiscal second quarter ended April 30, 2023.
Total revenue decreased $57 million, by 20% to $221.1 million year-on-year driven by deflationary pressure on avocado sales prices as a result of robust Mexican harvest volumes.
Mission, which is based in Oxnard, CA, shows a 36% decrease in average per-unit avocado sales prices was partially offset by a 19% increase in avocado sales, both of which were driven by higher industry supply out of Mexico during the current quarter as compared to limited supply out of Mexico in the same period last year.
Adjusted net income came to US$0.5 million, down from US$2.6 million in 2022, while adjusted earnings before interest, taxes, depreciation was US$7.6 million, a 17% decrease.
“Our fiscal second quarter performance was driven by improved sales volumes resulting from a more normal pricing environment versus last year’s record high pricing,” comments Steve Barnard, CEO of Mission.
“We delivered a 19% increase in sales volumes year over year, and we continued to see sequential improvement in both volumes and per-unit margins relative to fiscal first quarter. We are well positioned as we enter the Peruvian season and our owned production comes online in the second half of the fiscal year,” says Barnard.
“Despite the impact of lower prices on per unit margins in the short-term, a more rational pricing environment is advantageous for long-term consumption growth and allows Mission to leverage our global distribution footprint to penetrate new growth markets,” adds Barnard.