Mission Produce Inc
F:5YM
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Mission Produce Inc
F:5YM
|
US |
Mission Produce Inc
Mission Produce grows, packs, ships, and sells avocados, and it also handles a smaller amount of other fresh produce such as mangos. The company works with farms it owns or manages and also buys fruit from outside growers, then sorts, packs, ripens, and distributes it through its supply chain. Its customers are grocery chains, foodservice buyers, wholesale distributors, and other produce sellers that need a steady supply of ready-to-sell fruit. The company makes money mainly by selling fresh produce, especially avocados, to customers in North America and overseas. It also earns service-related income from packing, ripening, and distribution work that helps move fruit from growers to end buyers. Because avocados are highly seasonal and move through a wide network of growers, importers, and retailers, Mission Produce’s business depends on managing quality, timing, and logistics better than a simple farm or a pure distributor. What makes Mission Produce different is that it sits in the middle of the avocado supply chain with control over multiple steps, from orchard management to ripening centers. That lets it help customers get fruit that arrives at the right stage of ripeness and in a more predictable flow. In simple terms, it is a specialty produce company built around being a reliable source and handler of avocados for large buyers.
Mission Produce grows, packs, ships, and sells avocados, and it also handles a smaller amount of other fresh produce such as mangos. The company works with farms it owns or manages and also buys fruit from outside growers, then sorts, packs, ripens, and distributes it through its supply chain. Its customers are grocery chains, foodservice buyers, wholesale distributors, and other produce sellers that need a steady supply of ready-to-sell fruit.
The company makes money mainly by selling fresh produce, especially avocados, to customers in North America and overseas. It also earns service-related income from packing, ripening, and distribution work that helps move fruit from growers to end buyers. Because avocados are highly seasonal and move through a wide network of growers, importers, and retailers, Mission Produce’s business depends on managing quality, timing, and logistics better than a simple farm or a pure distributor.
What makes Mission Produce different is that it sits in the middle of the avocado supply chain with control over multiple steps, from orchard management to ripening centers. That lets it help customers get fruit that arrives at the right stage of ripeness and in a more predictable flow. In simple terms, it is a specialty produce company built around being a reliable source and handler of avocados for large buyers.
Revenue: Mission reported fiscal second-quarter revenue of $290.9 million, down 24% year over year, as avocado prices fell sharply from last year's peak even though volume grew 15%.
Margins: Gross margin came in at 7%, down 50 basis points, as an unusual mix of high supply and the wrong fruit sizes forced the company to buy spot fruit and discount other fruit to keep customers supplied.
Outlook: Management said the tough Q2 margin dynamics are now behind the company and expects margins to improve meaningfully in the back half of the year as Mexico supply rolls off and California and Peru become more important.
Calavo: Mission closed the Calavo acquisition on May 28 and expects at least $25 million of annualized cost synergies within 18 months, with benefits beginning in Q4 and ramping through 2027.
Demand: The company said U.S. avocado consumption hit new highs, with more than 1.6 million new households entering the category and about 50% or more of those households expected to stick.
Guidance: Mission guided third-quarter adjusted EBITDA to $28 million to $32 million and second-half adjusted EBITDA to $84 million to $88 million, both including the partial and then full contribution from Calavo.
