Mission Produce reports 12% revenue decrease due to pricing pressure

Fiscal first quarter 2021 highlights:

Total revenue of $173.2 million, a 12% decrease compared to the same period last year

Avocado volume sold increased 7%, average selling price decreased 18% compared to the same period last year

Gross profit increased 17% to $22.7 million, and gross profit margin increased 328 basis points, to 13% of revenue

Net income of $2.2 million, or $0.03 per diluted share compared to $1.4 million, or $0.02, for the same period last year

Adjusted net income was $7.9 million, or $0.11 per diluted share, compared to $2.5 million, or $0.04 per diluted share, for the same period last year

Adjusted EBITDA of $12.5 million, compared to $8.4 million for the same period last year

Volumes (in Lb) of avocados in the US Market

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Price (in USD) of avocados in the US Market

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Steve Barnard, Chief Executive Officer of Mission Produce, commented: “We delivered a strong fiscal first quarter with an adjusted EBITDA performance that met the high-end of our expectations, despite a 12% decrease in revenue that was driven by continued pricing pressure versus prior year. Our operations are performing very efficiently despite global disruptions in the supply-chain network.”

Mr. Barnard continued, “For the second quarter-to-date period, pricing continues to be down versus the prior year, but we are beginning to see some increase, which, if sustainable, would create a positive environment for our International Farming segment in the back half of this fiscal year. Consumption patterns at retail have remained resilient, increasing 16% in January, despite the disruption to large gatherings and uncertainty surrounding major events such as the Big Game. We believe this is evidence that the avocado is officially a staple in consumer diets today and should continue to support long-term consumption growth.”

Outlook

For the second quarter of fiscal year 2021, the Company is providing the following update to inform modeling assumptions but is not providing formal guidance due to the fluidity of the market at this point in the year.

Consolidated volume for the second quarter-to-date period through February 2021 is trending up approximately 14% versus prior year.

Sales prices for the second quarter-to-date period through February 2021 are trending down approximately 20% versus prior year.

A replay of the conference call hosted to discuss the fiscal first quarter 2021 financial results will be available through March 24, 2021 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13716274.

To read the full financial results report, click here.

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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