Mission Produce Q2 Revenue Falls 24% to $290.9M, $7.2M Loss and $100M Buyback
AVO•Mission Produce completed its acquisition of Calavo Growers on May 28 and authorized a $100 million share repurchase program over three years. In the second quarter, revenue declined 24% to $290.9 million on 15% higher avocado volumes, driving a $7.2 million net loss and reducing adjusted EBITDA to $7.1 million.
1. Calavo Acquisition and Share Repurchase Program
Mission Produce completed its acquisition of Calavo Growers on May 28, expanding its sourcing and distribution network. The board authorized a share repurchase program of up to $100 million over the next three years to enhance shareholder value and optimize capital structure.
2. Second Quarter Financial Results
For the quarter ended April 30, revenue declined 24% year-over-year to $290.9 million despite a 15% increase in avocado volumes. Net loss attributable to Mission Produce was $7.2 million, while adjusted EBITDA fell to $7.1 million, reflecting historically low prices and supply-demand mismatches.
3. Operational Dynamics and Volume Trends
Per-unit margins were compressed in April due to a temporary mismatch between Mexican supply of core fruit sizes and customer demand, compounded by delays in California and Peru harvests that increased sourcing costs. U.S. avocado consumption hit record highs, with per-capita intake rising double digits and over 1.6 million new households entering the category.
4. Strategic Outlook and Capital Allocation
Recent CEO succession and Calavo integration mark a new chapter for Mission Produce, with management focusing on improving asset utilization, strengthening product mix and driving margin expansion. An Investor Day in the fall will outline long-term growth plans and capital allocation priorities.
