Mission Produce Inc.
said revenue rose 18% in the second quarter as an increase in prices offset a decrease in volume sold.
The avocado producer and distributor said net income fell to $2.4 million, or 3 cents a share, for the quarter ended April 30, from $7.4 million, or 10 cents a share, in the year-ago period. Adjusted earnings were 4 cents a share, above analysts’ expectations of 1 cent a share.
Revenue rose to $278.1 million from $234.7 million. Analysts polled by FactSet expected $278.9 million.
The company said the increase in revenue was driven by a 44% increase in the average per-unit avocado sales prices due to lower industry supply out of Mexico as well as inflationary pressures. Partially offsetting price gains was a 19% decrease in avocado volume sold due to lower supply.
For the third quarter of fiscal 2022, the company said it expects volumes to increase sequentially but remain lower by about 10% to 15% from a year earlier due to ongoing supply constraints in Mexico, which is not expected to abate until the fourth quarter. Third-quarter supply pressure will be partially offset by higher supply from Peru and California, Mission said. The company said it believes the pricing environment should begin to rationalize in the third quarter based on the expectation for sequentially improving volumes.
Shares rose about 2% in after-hours trading Wednesday.