Mission Produce Q2 2023 Earnings Report
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
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