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Apr 30, 2022
Mission Produce Q2 2022 Earnings Report
Mission Produce reported an 18% increase in total revenue, driven by higher average selling prices, but net income decreased due to lower avocado volume sold and increased SG&A expenses.
Key Takeaways
Mission Produce's fiscal second quarter saw an 18% increase in revenue to $278.1 million, driven by a 44% increase in average selling prices. However, net income decreased to $2.4 million, or $0.03 per diluted share, due to a 19% decrease in avocado volume sold and higher SG&A costs.
Total revenue increased by 18% to $278.1 million, driven by a 44% increase in average selling prices.
Net income decreased to $2.4 million, or $0.03 per diluted share, compared to $7.4 million, or $0.10 per diluted share, for the same period last year.
Adjusted EBITDA decreased to $9.2 million compared to $16.3 million for the same period last year.
Avocado volume sold decreased by 19%, primarily driven by lower supply.
Mission Produce
Mission Produce
Mission Produce Revenue by Segment
Revenue by Segment
International Farming Revenue
CapyFin.com Forward Guidance
The industry is expecting third quarter volumes to increase sequentially, but remain lower by approximately 10-15% versus the prior year period, primarily due to ongoing supply constraints in Mexico that are not expected to alleviate until the fiscal fourth quarter. Based on the expectation for sequentially improving volumes, the Company believes that the pricing environment should begin to rationalize during fiscal third quarter.
Positive Outlook
- Third quarter volumes are expected to increase sequentially.
- Supply from Peru and California will partially offset third quarter supply pressure.
- Pricing environment should begin to rationalize during fiscal third quarter.
- Consumer demand remains strong.
- Mission is uniquely able to address volume constraints through its strategy to invest in vertical integration.
Challenges Ahead
- Third quarter volumes are expected to remain lower by approximately 10-15% versus the prior year period.
- Ongoing supply constraints in Mexico are not expected to alleviate until the fiscal fourth quarter.
- Net income decreased due to lower avocado volume sold.
- Adjusted EBITDA decreased due to lower avocado volume sold and higher SG&A costs.
- The industry faces volume constraints due to lack of supply.