Mission Produce Inc (NASDAQ:AVO), a world leader in sourcing, producing and distributing fresh Hass avocados with additional offerings in mangos, and NatureSweet Tomatoes, the producer of North America’s best-selling snacking tomatoes, Cherubs, stock rose 2.01% (As on September 9, 11:29:41 AM UTC-4, Source: Google Finance) after the company posted mixed results for the third quarter of FY 22. Third-quarter gross profit increased $1.7 million or 4% compared to the same period last year to $42.6 million, and gross profit percentage decreased 300 basis points to 13.6% of revenue. The increase in gross profit was primarily driven by higher per-unit margins during the quarter. Net income for the third quarter of fiscal 2022 was $18.4 million, which was essentially flat with the prior-year period.

AVO in the third quarter of FY 22 has reported the adjusted earnings per share of 27 cents, missing the analysts’ estimates for the adjusted earnings per share of 31 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 27 percent to $313.2 million in the third quarter of FY 22, beating the analysts’ estimates for revenue by 15.67%. The growth was driven by a 42% increase in average per-unit avocado sales prices due to lower industry supply out of Mexico following a smaller Mexican harvest, as well as inflationary pressures. As a result of the smaller industry harvest, avocado volume sold decreased 11%. Domestic volumes declined 6%, which was a lower rate relative to export markets during this period, demonstrating the resiliency of demand for avocados amid higher price points in the U.S. market.

Additionally, on May 1, 2022, a reconsideration event occurred wherein Mission Produce obtained a controlling interest in Moruga, an entity for which the Company owns a 60% equity interest

Meanwhile, the company has signed a long-term third-party logistics (3PL) partnership leveraging Mission’s state-of-the-art forward distribution center (FDC) in Laredo, Texas. The move is anticipated to support the expansion of NatureSweet’s greenhouse portfolio, which includes the industry’s leading snacking tomatoes, medium/large tomatoes, cucumbers, and peppers. Mission’s 261,000-square-foot Laredo distribution center got opened in September of 2021 with a goal to support the $4.2 billion of produce imported through the Laredo World Trade Port of Entry (Port of Laredo). The partnership is Mission’s largest 3PL agreement to date and expands on the Company’s existing logistics partnerships across its other FDCs in New Jersey, California and Calgary.