Mission Produce® Announces Fiscal 2026 First Quarter Financial Results

Core Insights - Mission Produce, Inc. reported a strong start to fiscal 2026 with a 14% growth in avocado volume, despite a 30% decrease in per-unit avocado sales prices, leading to a total revenue decline of 17% to $278.6 million [3][4][9] - The company is progressing with the acquisition of Calavo Growers, expected to close in the fiscal third quarter, which aims to enhance its avocado platform and diversify its product portfolio while unlocking at least $25 million in annual synergies [3][22][23] Financial Overview - Total revenue for the first quarter of fiscal 2026 decreased by $55.6 million or 17% compared to the same period last year, primarily due to a 30% drop in per-unit avocado sales prices, partially offset by a 14% increase in avocado volume sold [4][9] - Gross profit remained stable at $31.6 million, with gross margin increasing by 190 basis points to 11.3% of revenue, driven by improved per-unit margins in the Marketing & Distribution segment [5][10] - Selling, general and administrative expenses rose by $6.9 million or 31% to $29.1 million, largely due to transaction advisory costs related to the Calavo acquisition [6][9] Segment Performance - In the Marketing & Distribution segment, total sales decreased by $61.0 million or 21% to $234.8 million, influenced by avocado volume and pricing dynamics [11] - The International Farming segment saw a 15% increase in sales to $10.6 million, with operating income and adjusted EBITDA also improving due to better packhouse utilization [14] - The Blueberries segment experienced a 12% increase in sales to $40.8 million, but operating income and adjusted EBITDA decreased significantly due to higher production costs [15][16] Balance Sheet and Cash Flow - Cash and cash equivalents decreased to $44.8 million as of January 31, 2026, down from $64.8 million as of October 31, 2025 [17] - Net cash used by operating activities was $3.0 million for the quarter, compared to $1.2 million in the same period last year, attributed to increases in working capital [19][20] Acquisition Details - The pending acquisition of Calavo Growers involves a total consideration of approximately $490 million, with Calavo stockholders receiving $14.85 in cash per share and 0.9790 shares of Mission common stock [22][23] - This acquisition is expected to enhance Mission's position in the North American avocado market and provide entry into the prepared food sector, which is projected to yield significant cost synergies [23]