Mission Produce Q3 Earnings Call Highlights

Mission Produce NASDAQ: AVO reported fiscal third-quarter 2026 adjusted EBITDA of $32.4 million, exceeding the high end of its previously projected $28 million to $32 million range, as stronger-than-expected international farming results and post-acquisition contributions from Calavo supported performance. Revenue for the quarter totaled $450 million, up 26% from the prior-year period. Avocado volume increased 38% year over year to approximately 253 million pounds, reflecting both the addition of Calavo and higher volume in Mission’s legacy business. Average avocado selling prices declined 9% from a year earlier amid higher industry supply. The company posted a net loss attributable to Mission Produce of $6.5 million, or $0.08 per diluted share, including acquisition-related costs, purchase accounting effects and higher interest expense. Adjusted net income was $15 million, or $0.18 per diluted share, compared with $18.2 million, or $0.26 per diluted share, a year earlier. U.S. retail avocado volume rose about 9% year over year during the quarter, even as the average retail price increased approximately 15% sequentially. U.S. per-capita avocado consumption was trending above 10 pounds year to date, up 12% from the prior year, while household penetration increased approximately 50 basis points. The company’s legacy business increased its estimated U.S. retail market share by about 60 basis points year over year. He said Mission is seeking to expand its category leadership while maintaining discipline on both volume and per-unit margins. Marketing and distribution segment sales rose to $414.3 million from $344.1 million in the prior-year quarter. Segment adjusted EBITDA increased to $24.7 million from $20 million, primarily due to Calavo’s post-acquisition contribution. The company said a more balanced supply mix from Mexico, California and Peru improved per-unit margins sequentially from the second quarter. Chief Financial Officer Bryan Giles said the segment benefited as California and Peru became more meaningful contributors to the company’s supply mix after delayed harvests had limited sourcing flexibility in the prior quarter. The third quarter was Mission’s first reporting period following the Calavo acquisition. Management increased its estimate for annualized cost synergies from at least $25 million to more than $30 million, citing higher-than-anticipated selling, general and administrative savings and network efficiencies. The company has begun moving fruit through the combined network, reducing reliance on higher-cost external suppliers and improving inventory positioning. Mission also discontinued operations at Calavo’s Temecula facility and is pursuing initiatives involving distribution, freight, technology, procurement and organizational structure. Management expects synergies to begin contributing in the fourth quarter and to build more meaningfully during fiscal 2027. During the quarter, Mission recorded $12.6 million in transaction, advisory and integration costs, including legal and advisory fees, severance and retention expenses, and other acquisition-related costs. The company also recorded $5.2 million in acquired inventory step-up amortization, $1.5 million in acquired intangible amortization, and $6.1 million in financing, tax and supply-chain optimization expenses associated with the transaction and integration. Prepared foods became a separate reportable segment following the acquisition.