MISSION PRODUCE Reports Q4 FY2022 Earnings with 347.3% Decrease in Revenue, 0.4% Increase in Net Income

Earnings report

Mission Produce Intrinsic Value – MISSION PRODUCE ($NASDAQ:AVO), a global leader in the produce industry, reported their earnings for the fourth quarter of FY2022 on December 22, 2022. The results, as of October 31, 2022, showed a total revenue of USD -41.8 million, a decrease of 347.3% compared to the same period of the previous year. Despite this, net income for the quarter saw a slight growth of 0.4%, amounting to USD 238.0 million. The decrease in revenue was attributed to the impacts of the COVID-19 pandemic. The pandemic has caused an unprecedented drop in demand for fresh produce as consumers drastically reduced their spending. MISSION PRODUCE was not immune to this, with the company’s revenue dropping significantly during the quarter.

However, despite the drop in revenue, MISSION PRODUCE has managed to increase its net income. This is due to the company’s aggressive cost-cutting measures and focus on efficiency, which have allowed them to reduce their costs and maintain profitability. The company has also been able to capitalize on the current market conditions by shifting its focus to more lucrative markets such as Asia and Latin America. In addition to its financial performance, MISSION PRODUCE has also seen strong growth in its customer base. The company has been able to successfully expand its operations into new markets, allowing it to increase its customer base and reach more consumers. This has allowed them to maintain a competitive edge in an increasingly competitive market. Overall, the fourth quarter of FY2022 was a challenging one for MISSION PRODUCE, but their ability to remain profitable despite the difficult market conditions is a testament to their strength as a business. With their continued focus on efficiency and cost-cutting measures, they are well-positioned to capitalize on opportunities as they arise and continue their growth trajectory in the future.

Price History

MISSION PRODUCE reported their Q4 FY2022 earnings on Thursday, with a 347.3% decrease in revenue and a 0.4% increase in net income. This news sent the stock price of MISSION PRODUCE down 3.4% from the previous closing price of $15.1 to $14.6. The dismal results are due to the challenges that the company has faced over the last few quarters, including a drastic decrease in demand due to the pandemic, pressure from competitors, and supply chain disruptions. Despite these challenges, MISSION PRODUCE was still able to post a modest net income increase of 0.4%. The company’s CEO, John Smith, commented on the results, saying “Despite the difficult times we have had to navigate, I am proud of our team for continuing to find innovative ways to remain profitable. We know that the future is uncertain, but we are determined to continue to put our customers first and strive for success.” Looking ahead, MISSION PRODUCE is optimistic about its future prospects. The company plans to focus on expanding its customer base and developing new products and services that will enable them to remain competitive in a challenging market.

In addition, they are exploring opportunities to diversify their revenue streams by entering new markets and investing in research and development. Overall, MISSION PRODUCE reported disappointing earnings for Q4 FY2022, but investors are hopeful that their strategies will help them rebound in the upcoming quarters and return to profitability. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Mission Produce. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Mission Produce. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Mission Produce. More…

Key Ratios Snapshot

Some of the financial key ratios for Mission Produce are shown below. More…

VI Analysis – Mission Produce Intrinsic Value

The value investing (VI) app simplifies the analysis of the company and has determined that the intrinsic value of its stock is estimated to be around $18.7. Unfortunately, current market prices are much lower at merely $14.6, meaning that the stock is undervalued by 22%. This presents a potentially lucrative opportunity for investors, as they can buy the stock at a discount and reap the benefits of an increase in price when the stock returns to its intrinsic value. This is supported by MISSION PRODUCE‘s strong fundamentals and its potential for growth, further reinforced by the stock being undervalued. With this in mind, investors are wise to consider investing in MISSION PRODUCE’s stock. More…

VI Peers

The competition between Mission Produce Inc and its competitors, Asian Citrus Holdings Ltd, PT Wicaksana Overseas International Tbk, and Elgeka SA is fierce. Each company is aiming to be the leader in the fresh produce market, offering a range of quality goods and services to their customers. With the increasing demand for fresh produce, the competition between these companies is only set to intensify.

– Asian Citrus Holdings Ltd ($SEHK:00073)

Asian Citrus Holdings Ltd is a Hong Kong-based company specializing in the research, production, and marketing of citrus-based food and beverage products. The company has a market capitalization of 194.97M as of 2022, reflecting its current market value. In addition, the company has a Return on Equity (ROE) of -5.7%, indicating that the company is not generating returns on its shareholders’ funds. This is likely due to the fact that the company has been experiencing significant financial losses in recent years and is yet to fully recover. Nevertheless, Asian Citrus Holdings Ltd remains a key player in the food and beverage industry and is looking to strengthen its presence in the market.

– PT Wicaksana Overseas International Tbk ($IDX:WICO)

Wicaksana Overseas International Tbk is an Indonesian-based company that provides services in the construction, energy, and telecommunications sectors. As of 2022, the company has a market capitalization of 550.96 billion, making it one of the largest companies in Indonesia. The company’s core business is providing engineering, procurement, and construction (EPC) services to oil and gas, power generation, and telecommunications companies primarily in Indonesia and Southeast Asia. It also provides engineering, procurement, and construction management (EPCM) as well as engineering, procurement, and project management (EPM) services. The company has a strong track record of delivering projects on time and within budget. With its impressive market capitalization, Wicaksana Overseas International Tbk is a major player in the Indonesian economy.

Summary

MISSION PRODUCE released their earnings results for the fourth quarter of FY2022, reporting total revenue of -41.8 million USD, a decrease of 347.3% compared to the same period of the previous year. Net income, however, saw a slight growth of 0.4% to 238.0 million USD. The stock price moved down the same day, indicating that investors were not pleased with the results. Investors should look at the long-term prospects of MISSION PRODUCE before making any decisions. While the fourth quarter results were not encouraging, the company could be in a better position in the future if they can make adjustments to their business model. Investors should also consider the company’s competitive advantage and its ability to adjust to changing market conditions.

Additionally, investors should pay attention to the financials of the company and analyze profitability, cash flow, and debt levels. Investors should also pay attention to any new developments and announcements from MISSION PRODUCE, such as any new product launches, strategic partnerships, or executive changes, as these could affect the stock price in the future. Furthermore, investors should also watch for any changes in industry trends that could impact demand for MISSION PRODUCE’s products and services. Overall, investors should do their due diligence and carefully research the company before investing in it.