Mission Produce Details Fiscal 2022 Fourth Quarter Financial Results; Steve Barnard Discusses

From And Now u Know | 29 December 2022

Overview of avocados in the U.S. market, complemented by charts from Agronometrics. Original published on December 28, 2022. 

OXNARD, CA – Guess what? Mission Produce has unveiled its financial results for the fiscal fourth quarter ended October 31, 2022. In the report, the avocado, mango, and blueberry supplier revealed total revenue of $238 million.

“We advanced our position with retailers during fiscal fourth quarter through a successful activation of our Peruvian program,” Steve Barnard, Founder and Chief Executive Officer. “Mission’s ability to deliver consistent, high-quality fruit during the Mexican off-season is a clear advantage of our vertical integration. These capabilities, combined with our expanding network of ripening and distribution assets, provide us with the tools to penetrate new and growing markets in Europe and Asia.”

Some highlights recorded in Mission’s fourth-quarter report include adjusted net income of $9.2 million and adjusted EBITDA of $17.2 million.

“While we are pleased with the commercial traction we are having with customers for our Peruvian production, our fiscal fourth quarter financial performance was impacted by a confluence of variables, especially with regard to the rapid decline in pricing, which undermined our ability to drive the per-unit margins that we have generated historically,” Barnard continued. “Persistent cost inflation, combined with a suboptimal size curve from our owned production and, a delay to our seasonal transition to the Mexican production resulted in an unfavorable mix, lower relative pricing, and temporary margin compression.”

avocado prices by origin 1

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Highlights for the full year of 2022 include:

– Total revenue of $1.0 billion, a 17 percent increase compared to last year

– Adjusted net income of $18.5 million

– Adjusted EBITDA of $47.6 million

– Owned exportable avocado production volume increased 15 percent to 117 million pounds for the 2022 harvest season

“With respect to 2023, we see a more normal marketplace emerging—highlighted by better and more consistent supply conditions—which provides a constructive foundation for the industry to drive consumption and expand growth in new geographies. We are prepared to meet demand during the upcoming peak Super Bowl season, and expect to produce improved operating performance for the full year 2023,” Barnard concluded.

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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