Mission Produce recorded a drop in net income and exportable avocado volume in 2023
During 2023, Mission Produce, a company specializing in the production and supply of Hass avocados, experienced a 12% increase in total avocado sales volume, although it recorded a decrease in net income and exportable production volume compared to the previous year. Despite a slight increase of 2% in adjusted EBITDA, reaching US$48.4 million, the company faced weather-related challenges in Peru that impacted expected quality and volumes.
Steve Barnard, CEO of Mission Produce, explained that weather problems in Peru negatively impacted the expected quality and volumes at the end of the season, limiting the company's ability to generate higher profits. Barnard stated, "We were limited in our ability to generate the seasonal increase in adjusted EBITDA that we would normally expect in the fourth quarter of 2023."
Looking ahead to 2024, the company aims to improve pricing in its international agriculture segment by adjusting its marketing strategy and focusing on cost-control measures to maximize efficiency. Barnard noted, "We are intensely focused on promoting cost-control measures and reallocating resources to maximize efficiency."
For the first quarter of 2024, avocado industry volumes are expected to decrease slightly due to the forecast of a smaller Mexican harvest, which may result in smaller fruit and, therefore, lower prices compared to the first quarter of fiscal year 2023.
