Mission Produce Reports Lower-Than-Expected Profit in Q3


By Ben Glickman

Mission Produce, an avocado grower based in Oxnard, California, reported lower profits in the fiscal third quarter due to decreased avocado prices compared to the previous year. The company’s profit for the quarter ended July 31 was $6.6 million, or 9 cents per share, down from $18.4 million, or 26 cents per share, in the same period last year. Analysts had predicted earnings per share of 23 cents.

After adjusting for certain one-time items, the adjusted earnings per share were 15 cents, falling short of analysts’ forecast of 22 cents. Despite the decline, revenue was higher than expected at $261.4 million, a 17% decrease from the previous year but still surpassing the projected $242 million.

The drop in revenue was primarily attributed to a 33% decrease in average avocado prices, although this was partly offset by a 23% increase in volumes. Mission Produce’s Chief Executive, Steve Barnard, explained that lower anticipated volumes resulting from a change in growing conditions in Peru impacted the company’s margins during the quarter.

Going forward, Mission Produce expects volumes to remain steady or slightly lower in the next quarter due to reduced supply from Peru. However, pricing is anticipated to remain relatively stable or experience a slight increase on a sequential basis.

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