Mission Produce Reports 17% Decline in Net Sales, Plans Acquisition of Calavo Growers

Mission Produce, Inc. reported a significant decline in financial performance for the three months ended January 31, 2026, with net sales totaling $278.6 million, a decrease of 17% from $334.2 million in the same period last year. The decline was primarily driven by a 30% drop in per-unit avocado sales prices, although this was partially offset by a 14% increase in avocado volume sold. The company's gross profit remained relatively stable at $31.6 million, compared to $31.5 million in the prior year, resulting in a gross profit margin increase to 11.3% from 9.4%. However, the company reported a net loss of $0.1 million, a stark contrast to the net income of $6.2 million recorded in the previous year.

In terms of operational changes, Mission Produce's selling, general, and administrative (SG&A) expenses rose by 31% to $29.1 million, largely due to $7.0 million in transaction advisory costs associated with the planned acquisition of Calavo Growers, Inc. The company also experienced a decrease in interest expenses, which fell to $1.7 million from $2.2 million, attributed to lower average balances on its revolving credit facility. Equity method income increased to $1.5 million from $0.8 million, reflecting improved performance from its investments.

The company is actively pursuing strategic growth through its merger agreement with Calavo Growers, announced on January 14, 2026. The deal, valued at approximately $490 million, is expected to enhance Mission's position in the North American avocado market and provide entry into the prepared food sector. The transaction is anticipated to close in the third fiscal quarter of 2026, pending regulatory and shareholder approvals. Additionally, Mission Produce has adopted a shareholder rights plan to deter potential hostile takeovers, particularly in light of increased ownership by an activist investor.

Operationally, Mission Produce reported a total of 70.8 million shares outstanding as of January 31, 2026, with total assets increasing to $997.7 million from $983.0 million at the end of the previous fiscal year. The company’s cash and cash equivalents decreased to $44.8 million, down from $64.8 million. The company continues to monitor market conditions and expects to navigate challenges related to supply chain disruptions, competition, and fluctuating market prices for avocados. Looking ahead, Mission Produce remains focused on executing its growth strategy while managing operational efficiencies and maintaining compliance with its credit facility covenants.