Mission Produce, Inc. (AVO) in the U.S. reported fiscal third-quarter revenues of US$357.7 million, up 10% year-on-year. The increase was driven by higher avocado volumes and pricing discipline despite oversupply conditions. The company stated that its vertically integrated model, combining sourcing and farming assets, allows consistency across shifting supply-demand dynamics.
Mission Produce optimized its sourcing mix between Peru and Mexico during the quarter. Stronger Peruvian yields and normalized Mexican supply supported volumes and margins. European sales rose 37% year-on-year, while new channels in Asia expanded distribution. The company indicated that its international diversification reduces exposure to U.S. price volatility.
© Mission Produce
For the fourth quarter, Mission Produce expects lower pricing, down 20–25% year-on-year as supply increases. Investments in packhouse upgrades in Mexico and diversification into mangoes and blueberries are aimed at offsetting margin pressure through volume growth. The company also cited its balance sheet strength and reduced capital spending as providing flexibility.
Competitors include Calavo Growers, Inc. (CVGW) and Fresh Del Monte Produce Inc. (FDP). Calavo Growers remains a leading avocado marketer in the United States, supported by grower relationships, retail partnerships, and a vertically integrated supply chain. The company has emphasized cost optimization and portfolio adjustments to improve margins, with prepared foods and guacamole providing additional revenue streams.
Fresh Del Monte operates across multiple categories, including bananas, pineapples, avocados, and fresh-cut products. With its global distribution network, the company supplies both retail and foodservice markets across North America, Europe, the Middle East, and Asia. Recent efforts have focused on packaging, fresh-cut expansion, and technology-driven farming practices.
Mission Produce shares have gained 27.7% in the past six months compared with the industry average of 12%. The company currently trades at a forward price-to-earnings ratio of 25.07, compared with the industry average of 14.67.
According to the Zacks Consensus Estimate, AVO's fiscal 2025 and 2026 earnings are projected to decline 9.5% and 28.4% respectively. Both estimates have moved higher in the past 30 days.
Source: The Globe and Mail