Avocado marketer and producer posted a net loss of US$7.2mn for Q2 2026, with revenue down 24 per cent year-on-year to US$290.9mn
Mission Produce has published its results for the fiscal second quarter (Q2) of 2026, revealing lower revenue and a net loss of US$7.2mn.
Total revenue decreased 24 per cent to US$290.9mn compared with the same period of 2025, attributed to a 36 per cent drop in per-unit avocado sales prices, although this was partially offset by a 15 per cent increase in avocado volume sold.
The group’s gross profit was down to US$20.5mn from US$28.4mn, falling in the marketing and distribution segment due to historically low prices and a mismatch in supply and demand for core fruit sizes in April.
Gross profit was also down in Mission’s international farming segment due to reduced volume of blueberry packing and storage services resulting from lower harvest volumes combined with higher per-unit mango production costs.
Net loss attributable to Mission came in at US$7.2mn, falling from a net income of US$3.1mn in Q2 last year.
“This quarter was shaped by high volumes, low prices, strong execution by our sales and operations teams, and unfortunately, margin compression concentrated in April,” explained John Pawlowski, president and CEO of Mission.
”Despite the low-price environment, we maintained manageable margins through most of the quarter until the Mexican supply of core fruit sizes fell out of line with customer demand in the final weeks.
”Delays in the California and Peru harvests increased sourcing costs to fill the gaps and pressured margins,” he continued.
”Importantly, supply conditions have improved, pricing and margins are recovering, and we expect to deliver solid performance in the back half of the year.
Pawlowski pointed out that the second quarter’s temporary low-price market had helped lay the foundation for more durable category growth longer term.
”US avocado consumption and household penetration reached record highs, with per-capita consumption up double-digits from last year and more than 1.6mn new households entering the category,” he said.
”As we’ve seen in the past, dynamics like these create a larger and more durable demand base, and as a category leader, Mission is positioned to capitalise on these trends going forward.”
A new chapter
The group’s recent acquisition of Calavo was also highlighted.
“Finally, we have recently entered a new chapter for Mission,” Pawlowski commented. ”In just the last two months we completed our CEO succession, consummated the acquisition of Calavo, drove meaningful share gains in our core business, and sharpened our capital allocation priorities that we expect will drive disciplined growth, margin expansion, and returns.
”We see meaningful opportunity to improve asset utilisation, strengthen mix, and convert our category leadership into higher earnings power over time.
”We are aligned on our agenda and focused on executing it with discipline,” he added.
Looking ahead, Mission offered an outlook on the fiscal third quarter, predicting that avocado industry volumes will increase 5-10 per cent on the corresponding period of 2025.
Expectations for exportable avocado production from Mission’s owned farms in Peru is expected to range between 120mn-130mn pounds.
Pricing is expected to be lower on a year-on-year basis by approximately 15 per cent, directly correlated with expectations of higher volumes available in US and international markets.
