Avocado specialist says Q2 revenue increase of 28 per cent was driven by its marketing and distribution segment
Mission Produce has reported on its results for the second quarter (Q2) of the fiscal year, with revenue rising but net income falling.
Total revenue increased US$82.7mn, or 28 per cent, to US$380.3mn compared to the same period last year.
The increase was primarily driven by the marketing and distribution segment, where average per-unit avocado selling prices increased 26 per cent, while volumes sold were flat.
The group noted that consumer demand outpaced supply in Q2, driving higher per-unit pricing as volume was limited by continuing constraints on Mexican fruit availability.
Net income for the quarter stood at US$3.1mn compared to US$7mn for the same period last year, while adjusted net income was US$8.7mn, down from US$9.8mn.
Adjusted EBITDA came in at US$19.1mn for the three-month period, a decrease of 5 per cent from US$20.2mn last year, driven primarily by lower per-unit gross margins on avocados sold.
“We delivered record second quarter revenue and stronger than expected adjusted EBITDA performance,” said Steve Barnard, CEO of Mission.
”Our commercial teams successfully navigated typical seasonal supply challenges by leveraging our industry-leading global source network to satisfy customer commitments.
”While market pricing remained elevated during the second quarter and surpassed our expectation, distributed volumes were flat with the prior year period which speaks to the durability of consumption and the growing consistency of the category at retail,” he continued,
”We are also pleased with the progression of key strategic priorities to enhance our position with customers, both in terms of products and global markets.
”Our mango business gained significant market share and achieved record volumes, establishing Mission as a leading US distributor, while our operations in the United Kingdom are steadily gaining momentum through enhanced customer penetration which has optimised facility utilisation following the strategic investment in the region,” Barnard enthused.
“Looking ahead to the second half of the year, we are well-positioned to generate solid cash flow as we typically do through leveraging our own increased Peruvian supply to meet strong market demand.
”Given the strength of our balance sheet, we will continue to review our ability to opportunistically repurchase shares while balancing competing strategic priorities,” he added.
