Mission Withers on Sales Growth

Mission Produce Inc (NASDAQ:AVO) found its share prices plummet Tuesday morning, on reporting third-quarter FY21 sales growth of 4% year-on-year, to $246.8 million, marginally beating the analyst consensus of $246.37 million.

Avocado volume sold increased 2% Y/Y with a 2% hike in average selling price. Gross profit declined 7.5% Y/Y to $40.9 million, and gross profit decreased 210 basis points to 16.6%.

The operating margin was 9.6%, and operating income for the quarter fell 22.8% to $23.7 million. Adjusted EPS of $0.27 missed the analyst consensus of $0.29.

Adjusted EBITDA of $30.1 million declined 18% Y/Y.

Mission Produce held $76.7 million in cash and equivalents as of July 31. Net cash provided by operating activities for the nine months totaled $15.2 million.

Mission Produce sees FY21 sales of $890 million - $910 million (prior view $900 million - $920 million) versus the consensus of $910.57 million.
It sees FY21 adjusted EBITDA of $88 million - $94 million (prior $100 million - $105 million).

Said CEO Steve Barnard, "We were pleased with our fiscal third quarter performance amid heightened industry volatility that was brought about by Mexico’s delayed transitional harvest timing. Our team did an excellent job navigating this complex period and produced per-unit margins within the range of our expectations, though toward the lower end as a result of pricing volatility."

AVO shares traded lower by $2.1, or 10.3%, at $18.37 on Tuesday.