Mission Produce(NASDAQ) AVO

Mission Produce helps grocery stores and restaurants get fresh avocados all year. It grows, packs, and ships fruit from farms to markets around the world. The company also ripens and packages fruit to meet specific customer orders.

From Orchards to Aisles

• Avocados: Fresh Hass avocados sourced from California, Mexico, and Peru; generated $246.7 million in net sales during the second quarter of 2026.
• Mangos: Sourcing and distribution of fresh mangos for international markets; accounted for $30.9 million in net sales during the second quarter of 2026.
• Blueberries: Farming and harvesting operations that primarily serve a single distributor; reached $11 million in net sales in the second quarter of 2026.
• Value-Added Services: Ripening, bagging, and custom packaging solutions provided through a global network of distribution centers.

New Roots and Recent Moves

• Purchased Calavo Growers, Inc. on May 28, 2026, for approximately $465 million to enter the prepared food market.
• Completed the Calavo acquisition using 17.5 million shares of common stock and approximately $266 million in cash.
• Expanded packing capacity in Mexico during the first half of fiscal 2026 through new facility construction projects.
• Launched a stock buyback program on June 3, 2026, allowing for up to $100 million in repurchases over three years.

How Mission Scales the Supply Chain

Mission Produce manages every stage of the avocado business, from growing on farms to delivering to stores. The company uses its own facilities to control the ripening process, which helps ensure fruit arrives at the right stage for customers. This vertical integration, where a company owns multiple parts of its supply chain, helps manage complex global shipping schedules.

Tracking the Financial Trajectory

• Net sales fell to $290.9 million in the second quarter of 2026, down 23.5% from the previous year.
• Net income hit a loss of $7.2 million in the second quarter of 2026, worsening from a $3.1 million profit.
• Free cash flow reached a deficit of $29 million in the second quarter of 2026, deepening 16% year-over-year.
• Gross profit was $20.5 million in the second quarter of 2026, a 27.8% decrease from the same period in 2025.
• Operating cash flow reached a deficit of $18 million in the second quarter of 2026, a 52.5% deeper loss than the prior year.

Bottom Line

Mission Produce is diversifying its business by moving into prepared foods like guacamole and salsas through major acquisitions. While fruit price swings currently impact profits, the company is building more infrastructure to secure its long-term global supply.