OXNARD, Calif., June 10, 2021 (GLOBE NEWSWIRE) — Mission Produce, Inc. BB #:118126, the world leader in sourcing, producing, and distributing fresh avocados, today reported its financial results for the fiscal second quarter ended April 30, 2021.
Fiscal Second Quarter 2021 Highlights:
- Total revenue of $234.7 million, a 6% increase compared to the same period last year
- Avocado volume sold increased 22%, average selling price decreased 14% compared to the same period last year
- Gross profit increased 26% to $27.1 million, and gross profit percentage increased 180 basis points, to 11.5% of revenue
- Net income of $7.4 million, or $0.10 per diluted share compared to net loss of $14.8 million, or $(0.23) per diluted share, for the same period last year
- Adjusted net income of $8.7 million, or $0.12 per diluted share, compared to $6.2 million, or $0.10 per diluted share, for the same period last year
- Adjusted EBITDA of $16.3 million, an increase of 13% compared to $14.4 million for the same period last year
Steve Barnard, Chief Executive Officer of Mission Produce, commented, “We posted strong fiscal second quarter adjusted EBITDA of $16.3 million, which was a 13% increase versus prior year. Our blue-chip customer base and the flexibility our network provides allowed us to distribute 22% greater volume than prior year. With our vertical integration and key intelligence, we are in excellent position to grow our leadership position.”
Mr. Barnard continued, “Looking ahead to the second half of fiscal 2021, we transition into the southern hemisphere season where our Peruvian harvest comes online. The growing season was very productive, and we are expecting solid yields from our crop and with prices firming up, we are in a great position to deliver a strong second half operating performance, led by our International Farming segment. For the third quarter-to-date period, retail pricing is steady, along with consumption patterns versus the prior year, which is common going into the summer months.”
Fiscal Second Quarter 2021 Consolidated Financial Review
Total revenue for the second quarter of fiscal 2021 was $234.7 million compared to $221.6 million for the same period last year, representing a 6% increase, primarily due to a 22% increase in avocado volume sold, partially offset by a 14% decrease in average per-unit avocado sales prices. The price and volume dynamics were driven by strong industry supply from Mexico in the second quarter, though sequential monthly pricing improved throughout the quarter. In addition, volume during the prior period was negatively impacted by COVID-19 related stay at-home orders that went into effect in March 2020.
Gross profit increased 26% compared to the same period last year to $27.1 million, and gross profit percentage increased 180 basis points to 11.5% of revenue. The increase in gross profit is due primarily to higher avocado volume sold. The improvement in gross profit percentage is being driven by lower per-unit sales prices, as per-unit margin represented a higher proportion of the sales value. Per-unit sales price levels are a key determinant in reported gross profit percentage.
Selling, general and administrative expense (“SG&A”) for the second quarter increased $5.2 million to $16.3 million, due primarily to higher professional fees, higher employee-related costs and higher liability insurance premiums that are associated with being a public company. We also experienced an increase in rent expense in conjunction with our move to our new corporate headquarters in February 2021.
Net income for the second quarter of fiscal 2021 was $7.4 million, or $0.10 per diluted share. This compares with a net loss of $14.8 million, or $(0.23) per diluted share, for the same period last year. Net income in the second quarter of fiscal 2020 was negatively impacted by a non-cash impairment charge of $21.2 million in the prior year related to our equity method investment in Moruga.
Adjusted net income for the second quarter of fiscal 2021 was $8.7 million, or $0.12 per diluted share, compared to $6.2 million, or $0.10 per diluted share, for the same period last year.
Adjusted EBITDA was $16.3 million for the second quarter of fiscal 2021, compared to $14.4 million for the same period last year. The increase in adjusted EBITDA was driven by volume growth and margin improvement, partially offset by higher SG&A expenses.
About Mission Produce, Inc.
Mission Produce is the global leader in the worldwide avocado business. Since 1983, Mission Produce has been sourcing, producing and distributing fresh Hass avocados, and as of 2021, fresh mangos, to retail, wholesale and foodservice customers in over 25 countries. The vertically integrated Company owns and operates four state-of-the-art packing facilities in key growing locations globally including California, Mexico & Peru and has additional sourcing capabilities in Chile, Colombia, Dominican Republic, Guatemala, New Zealand, & South Africa, which allow the company to provide a year-round supply of premium fruit. Mission’s global distribution network includes twelve forward distribution centers in North America, China & Europe that offer value-added services such as ripening, bagging, custom packing and logistical management. In addition, Mission owns over 11,000 acres globally, allowing for diversified sourcing and access to complementary growing seasons, while ensuring its customers receive the highest quality fruit possible. For more information, please visit www.missionproduce.com.