Vertically integrated model delivers consistent results despite market volatility, with net income rising to US$14.7mn as the company effectively manages global production and distribution
Mission Produce has released its results for the third quarter (Q3) of the fiscal year, reporting on gains across the board.
Total revenue increased 10 per cent to US$357.7mn compared to the same period last year, primarily driven by the marketing and distribution segment, where avocado volume sold increased 10 per cent.
This was partially offset by a decrease in average per-unit avocado sales prices of 5 per cent, the group noted.
Volume and price movements resulted from higher Peruvian avocado production driven by more favourable weather conditions in the current year, and greater availability of Mexican fruit due to harvest disruptions in the previous year.
Net income was US$14.7mn compared to US$12.4mn last year, while adjusted net income came in at US$18.2mn, up from US$16.7mn.
Mission said that adjusted EBITDA was $32.6mn for the quarter, an increase of US$1.1mn or 3 per cent on the prior year period, driven primarily by increased avocado production in the company’s international farming segment.
CEO’s verdict
“This quarter, our commercial team demonstrated its unique ability to effectively programme our owned Peruvian production to strategically deliver fruit into multiple global regions, resulting in supply consistency for our consumers and another quarter of strong financial performance,” said Steve Barnard, CEO of Mission.
”Our vertically integrated model, which combines a year-round sourcing network, owned production, global marketing and distribution capabilities and value-add services allows Mission to provide category leadership to drive global consumption.
”What’s particularly encouraging is how our operations have adapted to market volatility – we’ve now demonstrated our ability to deliver solid results whether facing difficult supply conditions or favourable harvest environments, reflecting the consistency and operational excellence that helps us navigate various headwinds and capitalise on opportunities as they arise,” he explained.
”With our strong operational performance and continued focus on working capital management, we generated US$34mn of operating cash flow during the third quarter and expect to build on this in the fourth quarter as we sell the balance of our owned-crop inventory.”
Q4 Outlook
For the fourth quarter of fiscal year 2025, Mission said that avocado industry volumes are expected to be approximately 15 per cent higher versus the prior year period due to a combination of “ample” Peruvian product in the supply chain as the harvest season nears completion, and the transition to the new Mexican crop, which is expected to be larger than prior year due to favourable weather conditions.
Exported production from Mission’s owned farms in Peru is expected to range between 105-110mn pounds – compared to 43mn pounds in the 2024 harvest season, which was negatively impacted by weather-related events – of which approximately 48mn pounds were sold through as of the end of the fiscal third quarter.
Pricing is expected to be lower on a year-over-year basis by approximately 20-25 per cent, directly correlated with expectations of higher volumes available in US and international markets.
Mission noted that the blueberry harvest season in Peru will begin to ramp up during the quarter, with the company expecting to see ”meaningful volume increases” from its owned farms, although the impact on revenue will likely be offset by lower average sales prices.
