- Mission Produce Inc (NASDAQ:AVO) reported first-quarter FY22 sales growth of 25% year-on-year, to $216.6 million, missing the consensus of $243.24 million.
- Revenue growth was driven by a 50% increase in average per-unit avocado sales prices, partially offset by an 18% decrease in avocado volume sold, primarily driven by lower supply.
- Gross profit was $0.5 million versus $22.7 million last year, primarily due to operational challenges created by ERP implementation.
- The company incurred an operating loss of $(18.2) million versus an income of $8.1 million last year.
- Adjusted EPS loss of $(0.17) missed the analyst consensus of $0.05.
- Adjusted EBITDA loss was $(10.4) million versus $12.5 million last year.
- Mission Produce held $25.3 million in cash and equivalents as of January 31, 2022. Net cash used in operating activities for the quarter totaled $41.4 million.
- The company noted Q1 results were negatively impacted by several factors, including rapidly rising fruit costs and transportation rates and declining volumes across the industry.
- Outlook: Mission Produce noted industry is expecting Q2 Mexico volumes to remain lower than the prior year, primarily due to supply constraints associated with the Mexican harvest.
- Price Action: AVO shares closed lower by 15.7% at $11.25 in after-hours trading on Thursday.
