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Apr 30, 2023
Mission Produce Q2 2023 Earnings Report
Financial results for the fiscal second quarter ended April 30, 2023 were announced, revealing a mixed performance driven by deflationary pressure on avocado sales prices and increased sales volumes.
Key Takeaways
Mission Produce reported a decrease in total revenue by 20% to $221.1 million compared to the same period last year, driven by deflationary pressure on avocado sales prices. The company experienced a net loss of $(4.6) million, or $(0.07) per diluted share, compared to a net income of $2.4 million last year. However, sales volumes increased by 19% year over year, and the company saw sequential improvement in both volumes and per-unit margins relative to the first fiscal quarter.
Total revenue decreased by 20% to $221.1 million due to deflationary pressure on avocado sales prices.
Net loss was $(4.6) million, or $(0.07) per diluted share, compared to net income of $2.4 million last year.
Adjusted EBITDA decreased by 17% to $7.6 million.
Avocado volume sold increased by 19% compared to the same period last year.
Mission Produce
Mission Produce
Mission Produce Revenue by Segment
Revenue by Segment
Marketing & Distribution Revenue
CapyFin.comInternational Farming Revenue
CapyFin.comBlueberries Revenue
CapyFin.com Forward Guidance
For the third quarter of fiscal year 2023, the industry expects volumes to be approximately 20% higher versus the prior year period. Pricing is expected to be consistent on a sequential basis, but lower on a year-over-year basis by approximately 35-40% compared to the $2.03 per pound average experienced in third quarter of fiscal 2022.
Positive Outlook
- Industry expects volumes to be approximately 20% higher in the fiscal 2023 third quarter versus the prior year period.
- California's harvest shifting to the third quarter versus the second quarter last year.
- Strong Peruvian harvest outlook.
- Larger off-bloom Mexican harvest.
- Expectations for exportable avocado production from Mission’s owned farms is in the range of 125 million to 135 million pounds.
Challenges Ahead
- Pricing is expected to be lower on a year-over-year basis by approximately 35-40% compared to the $2.03 per pound average experienced in third quarter of fiscal 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income