{"id":20290,"date":"2023-06-09T01:41:20","date_gmt":"2023-06-09T05:41:20","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/lower-avocado-prices-are-leading-to-more-purchases-mission-produce-says-but-less-revenue\/"},"modified":"2023-06-09T01:41:21","modified_gmt":"2023-06-09T05:41:21","slug":"lower-avocado-prices-are-leading-to-more-purchases-mission-produce-says-but-less-revenue","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=20290","title":{"rendered":"Lower avocado prices are leading to more purchases, Mission Produce says, but less revenue"},"content":{"rendered":"
\n

Shares of Mission Produce Inc.\u00a0jumped after hours on Thursday after the avocado grower reported fiscal second-quarter results that beat estimates, after lower avocado prices led to more product sold but a drop in dollar-figure sales. <\/p>\n

The company reported a net loss of $4.6 million, or 7 cents a share, contrasting with a profit of $2.4 million, or 3 cents a share, in the same quarter last year. Sales fell 20% to $221.1 million, driven lower by falling avocado prices amid \u201crobust\u201d harvest volumes in Mexico, the world\u2019s largest avocado producer. <\/p>\n

\n

Adjusted earnings per share came in at 1 cent, compared with 4 cents a year ago. Analysts polled by FactSet expected an adjusted per-share loss of 1 cent, on revenue of $218.1 million. <\/p>\n

After initially surging more than 6% in after-hours trading, Mission Produce shares
\n AVO,
\n -0.56%<\/bg-quote>
\n finished Thursday\u2019s extended session down 0.6%.<\/p>\n

While revenue fell, sales volumes, a measure of the amount of product sold, rose 19%, amid a \u201cmore normal pricing environment,\u201d after prices surged last year, the company said. <\/p>\n

Those prices, Chief Executive Steve Barnard said on Mission Produce\u2019s earnings call, remained volatile last year after \u201cinconsistent harvest timing.\u201d Factors that drove prices higher last year included higher demand \u2014 amid increased popularity in the U.S. over the years \u2014 and labor and supply-chain constraints, according to media reports. The U.S. last year also briefly suspended Mexican avocado imports. <\/p>\n

Bryan Giles, Mission Produce\u2019s chief financial officer, said that Mission Produce\u2019s average per-unit sales pricing fell 36% during the quarter. But the company said lower prices would be better for business overall.<\/p>\n

\u201cDespite the impact of lower prices on per unit margins in the short term, a more rational pricing environment is advantageous for long-term consumption growth and allows Mission to leverage our global distribution footprint to penetrate new growth markets,\u201d Barnard said in a statement. <\/p>\n

Management said they expected volumes to be roughly 20% higher in the company\u2019s third quarter, \u201cprimarily due to the combination of California\u2019s harvest shifting to the third quarter versus the second quarter last year, a strong Peruvian harvest outlook and a larger off-bloom Mexican harvest.\u201d<\/p>\n

Executives said the company began operations at a new distribution center in the U.K. Management, during the call, also said that demand remained strong abroad, particularly in China. <\/p>\n

Shares of Mission Produce are down 10% over the past 12 months. By comparison, the S&P 500 Index
\n SPX,
\n +0.62%<\/bg-quote>
\n has risen 4.3% over that period. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Mission Produce Inc.\u00a0jumped after hours on Thursday after the avocado grower reported fiscal second-quarter results that beat estimates, after lower avocado prices led to more product sold but a drop in dollar-figure sales. The company reported a net loss of $4.6 million, or 7 cents a share, contrasting with a profit of $2.4 […]<\/p>\n","protected":false},"author":1,"featured_media":20291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-20290","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nLower avocado prices are leading to more purchases, Mission Produce says, but less revenue | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares of Mission Produce Inc.\u00a0jumped after hours on Thursday after the avocado grower reported fiscal second-quarter results that beat estimates, after\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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