Integration planning continues for the pending Calavo Growers acquisition, expected to close in the fiscal third quarter
Mission Produce has reported its financial results for the fiscal first quarter ended 31 January (Q1), with revenue down and the company recording a net loss.
Total revenue decreased US$55.6mn or 17 per cent year-on-year to US$278.6mn, primarily driven by a decrease in per-unit avocado sales prices of 30 per cent, partially offset by an increase in avocado volume sold of 14 per cent.
Volume and price movements in the company’s marketing and distribution segment were driven by increased Mexican avocado supply due to higher yields in the current year, the company noted.
Net loss attributable to Mission Produce was US$0.7mn, including the impact of transaction advisory costs, down from the US$3.9mn net income seen in Q1 of 2025.
The group said that adjusted net income was ”essentially flat” with the prior year at US$7.3mn, while adjusted EBITDA increased 5 per cent to US$18.5mn.
The EBITDA growth was attributed to higher avocado volume sold and improved per-unit margins in the marketing and distribution segment, partially offset by higher per-unit fruit production costs in the blueberries segment.
“We are off to a strong start in fiscal 2026, delivering 14 per cent avocado volume growth and strong adjusted EBITDA results as industry pricing normalised from the elevated levels experienced over the past year,” said CEO Steve Barnard.
”These results demonstrate our business model’s resilience and our team’s ability to execute consistently across market conditions.
”We’re deepening customer relationships and expanding category penetration while focusing on the two levers that drive long-term value: volume growth and per-unit margin management,” he highlighted.
”This approach delivered gross margin expansion in the quarter, reflecting ongoing optimisation in our marketing and distribution segment and operational discipline across our platform.”
Looking ahead to the second quarter, Mission said that avocado industry volumes are expected to increase by 10-15 per cent versus the prior year period, driven by a larger Mexican crop in the current harvest season.
Pricing is expected to be lower on a year-over-year basis by 30-35 per cent
Harvest timing for the 2025/26 Peruvian blueberry season is accelerated in relation to the prior year, leaving 10-15 per cent of the harvest to be sold through in the second quarter.
The company expects to see volume reductions from owned farms resulting from earlier pruning in the current year, which should translate to lower revenue despite expectations for higher sales prices.
Profitability will continue to be impacted by higher costs resulting from lower projected yields per hectare in the current harvest season, Mission said.
Calavo acquisition latest
John Pawlowski, president, chief operating officer and CEO-designate of Mission, stated that the company was excited about the progress being made on the acquisition of Calavo Growers, announced in January.
”This transaction represents a tremendous opportunity to expand our avocado platform, diversify our product portfolio, and enter the attractive prepared foods segment – all while unlocking at least US$25mn in expected annual synergies,” he said.
”Integration planning is underway and we believe that the transaction is on track to close during the fiscal third quarter.
”Combined with the strong financial foundation we’ve built – including a healthy balance sheet and enhanced free cash flow – we believe Mission is exceptionally well positioned for the next chapter of growth and value creation.”
Calavo also released its results for Q1, with net sales down to US$122.2mn from US$154.4mn in the same period of 2025.
The lower sales primarily reflect a 35 per cent decline in average avocado selling prices, partially offset by a 17 per cent increase in avocado carton volume.
Adjusted net income was US$4.8mn compared to US$6.3mn last year, while adjusted EBITDA was down to US$8mn from US$9.3mn.
”Across the first fiscal quarter, we saw sequential improvement in both our fresh and prepared segments,” said B John Lindeman, president and CEO of Calavo.
“In fresh, we executed well around seasonal demand, including Super Bowl-related retail opportunities, increasing sales volumes substantially over the prior year while maintaining solid per-unit margins in a pressured pricing environment.
“Looking ahead to the second fiscal quarter, we expect volume growth across both segments and believe our scale, customer relationships, and margin discipline position us well to navigate a dynamic pricing environment,” Lindeman noted.
”We anticipate the fresh avocado pricing environment will remain pressured, primarily due to a large Mexican crop.
“We are also making progress on our previously announced merger with Mission Produce,” he confirmed.
”We completed several required merger related filings, including our initial antitrust submissions in the US and Mexico, and a preliminary joint proxy statement.
”We remain focused on closing the transaction in the third fiscal quarter of 2026, subject to regulatory and shareholder approvals,” Lindeman added.
