Mission Produce results reflect higher volume, lower prices
A little more than three months after its initial public offering, Oxnard, Calif.-based Mission Produce has announced quarterly financial results for the year ending Oct. 31.
The company’s initial public offering on Oct. 1 saw 7.5 million shares sold at $12, netting proceeds of $78.1 million. The company’s stock — “AVO” on the NASDAQ exchange — was trading at $15.71 per share in mid-day trading on Jan. 19.
Total revenue for the quarter ending Oct. 31 was $206.8 million, compared to $231.7 million for the fourth quarter of 2019, representing an 11% decrease. The decrease in revenue was driven by lower average selling prices, which declined 24%, partially offset by volume growth of 16%, according to a news release.
The company reported gross profit decreased 7% compared to prior year to $39.5 million, while gross profit margin improved 0.70% to 19% of revenue. The increase in gross profit margin was attributable to a reduction of field costs in Mexico, according to the release.
Adjusted net income was $21.9 million for the fourth quarter of 2020, compared to adjusted net income of $24.7 million for the same period last year.
“I’m extremely proud of the organization we’ve built over the past 37 years and our No. 1 global leadership position in the industry,” Steve Barnard, CEO of Mission Produce, said in the release.
“Our October IPO was yet another milestone for our company and we are pleased to be in a position to continue pursuing the significant growth opportunity that lies ahead.”
Barnard said in the release that Mission is investing in its global infrastructure.
“We look forward to growing this category through our year-round distribution capabilities and meet consumer demand for this popular superfood.”
For the first quarter of fiscal year 2021, the company said it was expecting consolidated volume in the range of 155-165 million pounds and consolidated revenue in the range of $165-$175 million. Mission Produce expects to have compound volume growth in the high-single digit range, similar to expectations for industry growth rates, according to the release.
