Third-quarter results revealed with the avocado giant seeing revenue for the period jump 27 per cent
Avocado specialist Mission Produce has revealed its financial results for the fiscal third quarter ended 31 July, reporting on year-on-year growth in revenues and flat net income.
Total revenue came in at US$313.2m, a 27 per cent increase on the same period of 2022. This was driven by average selling price increases of 42 per cent, partially offset by an 11 per cent decrease in avocado volume sold.
Mission said that growth was driven by a 42 per cent increase in average per-unit avocado sales prices due to lower industry supply out of Mexico, as well as inflationary pressures.
Partially offsetting price gains was a decrease in avocado volume sold of 11 per cent, which was primarily driven by lower Mexican supply.
Net income remained flat at US$18.4m, with adjusted net income down slightly to US$18.9m from US$19.1m.
Adjusted EBITDA was US$31.6, for the third quarter compared with US$30.1m in 2021.
“We produced strong revenue growth in the third quarter due to sustained strength in pricing amid lower industry supply,” explained Steve Barnard, founder and CEO of Mission Produce.
”We achieved robust per-unit margins in the third quarter, demonstrating the flexibility of our diversified global sourcing platform which helps offset volatility from Mexican source markets,” he continued. “Our Peruvian farming operations are performing well this season, and we expect to produce approximately 15 per cent more volume than what we achieved in fiscal 2021.
”Reliable access to our owned fruit during the transitional Mexican season allows us to make long-term commitments to our retail partners, bringing confidence and stability to the programme, which is a capability that Mission is uniquely able to deliver for customers,” Barnard noted.
”We are well positioned heading into our fourth quarter and expect that industry supply constraints will ease, causing some softening of the pricing environment which has historically led to improving consumption trends across the global markets that we serve.”
