Mission Produce has revealed its results for the fourth quarter (Q4) and full-year of 2021, with revenue climbing despite what CEO Steve Barnard called "significant headwinds" at the end of the year.
In Q4, the company – a leading sourcer, producer, and distributor of fresh Hass avocados with additional offerings in mangoes – saw revenue climb 15 per cent year-on-year, up to US$237m.
This was primarily due to a 21 per cent increase in average per-unit avocado sales prices, partially offset by a 5 per cent decrease in avocado volume sold.
Mission said that, from a volume perspective, industry supply was negatively impacted by the delayed start of the Mexican harvest season combined with the trailing effects from a smaller Californian crop, partially offset by increased supply from Peru.
The group's net income for the three-month period was US$16.9m, down from US$18.8m, while adjusted EBITDA came in at US$26.4m compared with US$32.1m for the same period last year.
The full 2021 picture
For the full fiscal year, total revenue stood at US$891.7m, a 3 per cent increase compared to the prior year.
The group noted that this was impacted by a 5 per cent increase in avocado volumes sold, partially offset by a 2 per cent decrease in average per-unit avocado sales prices.
Net income for 2021 was US$44.9m, compared with US$28.8m in 2020, and adjusted EBITDA fell to US$85.3m from US$91.5m last year.
Business is resilient
“Our business faced significant headwinds in the fourth quarter," explained Steve Barnard, founder and chief executive officer of Mission Produce. "Mexico’s challenging supply dynamic, port delays and logistics issues, and the variability in consumer shopping patterns due to the ever-changing Covid-19 conditions negatively impacted our profitability.
"Despite these challenges, our business remains resilient," he continued. "We are well positioned to navigate through short-term disruptions while we continue to leverage our competitive advantages to further expand our industry leading position.
"Importantly, our owned production in Peru performed in line with our expectations, producing record volumes in fiscal 2021 and creating a reduced reliance on the fluctuating Mexican supply. Our vertical integration and multiple sources of supply year-round give us an unparalleled competitive advantage within the industry.
"Further, the strategic investments we have made to increase our capabilities and capacities, such as our mega facility in Laredo, Texas, which significantly increases our capacity during peak times during the year, and the continued expansion of our footprint in key international markets, gives us confidence in our future long-term success," Barnard added.
"As we look to 2022, we are confident in our ability to drive sustainable long-term growth with our forward thinking strategies and global footprint.”