Mission Produce reported fiscal third-quarter revenue of $450 million, up 26% year over year, as avocado volumes increased sharply following the acquisition of Calavo and higher Mexican supply.
Avocado volume increased 38%, partially offset by a 9% decline in average avocado selling prices. Mission Produce completed its acquisition of Calavo on May 28, adding scale to its Marketing & Distribution operations.
Mission reported a $6.5 million net loss, or $0.08 per diluted share, compared with net income of $14.7 million, or $0.21 per share, a year earlier. The quarter included $25.4 million of pre-tax Calavo acquisition-related costs.
Adjusted net income was $15 million, or $0.18 per share, compared with $18.2 million, or $0.26 per share, while adjusted EBITDA was $32.4 million, roughly unchanged from $32.6 million a year earlier but above management’s expectations.
The company raised its estimate for annualized synergies from the Calavo transaction to more than $30 million, citing higher-than-expected SG&A savings and network efficiencies.
Mission said it remains focused on integrating the acquired operation while maintaining customer service and business continuity.
Marketing & Distribution segment sales increased to $414.3 million from $344.1 million, while adjusted EBITDA for the segment rose to $24.7 million from $20 million, benefiting from Calavo’s contribution.
For the fiscal fourth quarter, Mission expects avocado industry volumes to increase approximately 10% year over year, while average pricing is expected to decline approximately 10% from the $1.39 per-pound average recorded in the prior-year quarter.
Exportable production from the company’s Peru farms is expected to reach approximately 120 million to 130 million pounds, compared with 105 million pounds in the fiscal 2025 harvest season.
KEY QUOTE:
“Our third-quarter results demonstrate the strength of our business and the team’s continued focus on operational execution. Performance benefited from solid results in Marketing & Distribution, stronger-than-forecast contributions from International Farming, and encouraging results from Calavo. We are also seeing the benefits of our commercial execution, with meaningful year-to-date U.S. retail market share growth for the legacy Mission business, reflecting our ability to reliably support customer programs through dynamic supply conditions.
“Our early work with Calavo has reinforced our confidence in the strategic and financial merits of the combination. Based on higher-than-anticipated SG&A savings and network efficiencies, we are raising our estimated annualized synergy opportunity to more than $30 million. There is meaningful work ahead, and our priority is to execute the integration thoughtfully, making the right changes in the right sequence while maintaining business continuity and delivering dependable service to our customers.
“Looking ahead, our priorities remain straightforward: extend our marketplace momentum, execute consistently across our global network, integrate Calavo thoughtfully, and translate our expanded scale into stronger earnings and returns. We believe the progress made this quarter provides a strong platform for Mission’s next phase of growth, which we’ll discuss further at Investor Day in October.”
John Pawlowski, President and Chief Executive Officer of Mission Produce
