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Jul 31, 2023
Mission Produce Q3 2023 Earnings Report
Mission Produce's financial performance reflected a decrease in total revenue due to lower average selling prices, which was partially offset by an increase in avocado volume sold. Net income and adjusted EBITDA also decreased compared to the same period last year.
Key Takeaways
Mission Produce reported a decrease in revenue by 17% to $261.4 million, driven by lower average selling prices of avocados, though partially offset by a 23% increase in avocado volume sold. Net income was $6.6 million, or $0.09 per diluted share, compared to $18.4 million, or $0.26 per diluted share, for the same period last year. Adjusted EBITDA decreased by 33% to $21.2 million, reflecting lower per unit margins within the International Farming segment.
Total revenue decreased by 17% to $261.4 million due to lower average selling prices.
Net income was $6.6 million, or $0.09 per diluted share, a decrease from $18.4 million, or $0.26 per diluted share, year-over-year.
Adjusted EBITDA decreased by 33% to $21.2 million due to lower per unit margins in the International Farming segment.
Avocado volume sold increased by 23% compared to the same period last year.
Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal year 2023, the company expects industry volumes to be flat to slightly lower versus the prior year period due to reduced supply from Peru. Pricing is expected to be flat to slightly higher on a sequential basis, and higher on a year-over-year basis by approximately 10% compared to the $1.28 per pound average experienced in fourth quarter of fiscal 2022.
Positive Outlook
- Pricing is expected to be flat to slightly higher on a sequential basis.
- Pricing is expected to be higher on a year-over-year basis by approximately 10% compared to the $1.28 per pound average experienced in fourth quarter of fiscal 2022.
Challenges Ahead
- Industry volumes are expected to be flat to slightly lower in the fiscal 2023 fourth quarter versus the prior year period due to reduced supply from Peru.
- Expectations for exportable avocado production from Mission’s owned farms is now in the range of 105 million to 115 million pounds, which is a decrease from its initial expectations due to the industry conditions noted above.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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