Q3 2026 Mission Produce Inc Earnings Call Transcript
Key Points
- Adjusted EBITDA of $32.4 million exceeded the high end of guidance, driven by strong marketing and distribution performance and better-than-expected international farming results.
- US retail avocado volume grew approximately 9% year-over-year despite a 15% sequential price increase, indicating durable consumer demand and category expansion.
- The company increased its annualized cost synergy estimate from the Calavo acquisition to more than $30 million, reflecting higher-than-anticipated SG&A savings and network efficiencies.
- Peruvian avocado production is expected to reach 120-130 million pounds, up from 105 million last season, with strong productivity and a record number of containers sold into Europe.
- Legacy Mission business gained approximately 60 basis points in US retail market share year-to-date, supported by deeper customer relationships and reliable supply programs.
- Net loss attributable to Mission Produce was $6.5 million, impacted by transaction and integration costs, purchase accounting adjustments, and higher interest expense.
- Gross margin decreased 270 basis points to 9.9% due to lower average selling prices, which reduced international farming gross profit.
- International Farming segment adjusted EBITDA declined to $7.6 million from $12.1 million year-over-year, primarily due to lower avocado sales prices.
- Cash used in operating activities was $25.9 million through the first nine months, compared to cash provided of $21.4 million last year, reflecting lower income and working capital requirements.
- The company incurred $12.6 million in transaction advisory and integration costs in Q3, with additional costs expected as integration initiatives continue.
Good afternoon and welcome to the Mission Produce fiscal third-quarter 2026 conference call. (Operator Instructions) Please also note today's event is being recorded.
At this time, I'd like to turn the call over to Andrew Pearson, Vice President of Investor Relations and Strategy for Mission Produce. Sir, please go ahead.
Thank you and good afternoon. Today's presentation will be hosted by John Pawlowski, President and Chief Executive Officer; and Bryan Giles, Chief Financial Officer. The comments during today's call contain forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are considered forward-looking statements. These statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events.
Such forward-looking statements are subject to known and unknown risks
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