By Elias Schisgall

Mission Produce swung to a loss and reported lower revenue in the fiscal second quarter, as low avocado prices and harvest delays weighed on the company's margins.

"Despite the low-price environment, we maintained manageable margins through most of the quarter until the Mexican supply of core fruit sizes fell out of line with customer demand in the final weeks," Chief Executive Officer John Pawlowski said. "Delays in the California and Peru harvests increased sourcing costs to fill the gaps and pressured margins."

Supply conditions have improved while the company has seen better pricing and margins since the second quarter, Pawlowski said, adding that the temporary period of low avocado prices could improve long-term avocado demand.

The avocado producer on Monday reported a loss of $7.2 million, or 10 cents a share, compared with a profit of $3.1 million, or 4 cents a share, a year earlier.

Stripping out certain one-time items, the company reported adjusted earnings of 1 cent a share. Analysts polled by FactSet were expecting 5 cents a share.

Revenue fell to $290.9 million from $380.3 million a year prior. Analysts were expecting $256.3 million of revenue.

Volumes grew 15% year-over-year, the company said.

For the current third quarter, the company is expecting a 5% to 10% increase in avocado volumes, with pricing expected to be around 15% lower than the previous year.

Mission's board also approved a $100 million share repurchase authorization last week, which is effective over the next three years. The new authorization replaces the company's previous stock buyback program, which had $11.2 million available for buybacks.

The company in January agreed to acquire rival avocado producer Calavo Growers for $27 a share through a combination of stock and cash, bringing the total deal value to around $483.3 million. That acquisition was completed late last month, the company said, with Mission paying around $266 million in cash and issuing 17.5 million shares to complete the deal.

Synergies from the Calavo acquisition are expected to be realized starting in the fourth quarter and build into fiscal 2027.

Shares fell 6% to $9.50 in after-hours trading on Monday. The stock closed the market session down 1.1% at $10.11, and touched a 52-week low of $10.07 in trading.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

June 08, 2026 16:25 ET (20:25 GMT)

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