Mission reports Q2 US$7.2M loss amid avocado price decline, expects recovery on Calavo acquisition
Looking ahead, Mission predicts avocado industry volumes will increase 5%-10% in Q3 compared to 2025.
USA – Mission Produce has reported a net loss of US$7.2 million for Q2 2026, as a sharp drop in avocado prices overshadowed record household consumption and a 15% increase in sales volume.
Total revenue decreased by 24% to US$290.9 million compared with the same period of 2025, driven by a 36% drop in per-unit avocado sales prices, although this was partially offset by a 15% increase in avocado volume sold.
The group’s gross profit fell to US$20.5 million from US$28.4 million, with pressure concentrated in the marketing and distribution segment due to historically low prices. Net loss attributable to Mission came in at US$7.2 million, down from net income of US$3.1 million in Q2 last year.
“This quarter was shaped by high volumes, low prices, strong execution by our sales and operations teams, and unfortunately, margin compression concentrated in April,” explained John Pawlowski, president and CEO of Mission.
“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. Delays in the California and Peru harvests increased sourcing costs to fill the gaps and pressured margins,” he added.
Furthermore, gross profit declined in Mission’s international farming segment due to reduced blueberry packing and storage services from lower harvest volumes, combined with higher per-unit mango production costs.
Therefore, supply chain imbalances and size mismatches created a perfect storm of margin compression in April. As a result, the company’s operational efficiency was temporarily undermined despite strong sales execution.
Additionally, Mission’s recent acquisition of Calavo represents a strategic turning point for disciplined growth. “In just the last two months, we completed our CEO succession, consummated the acquisition of Calavo, drove meaningful share gains in our core business, and sharpened our capital allocation priorities,” Pawlowski stated.
Looking ahead, Mission predicts avocado industry volumes will increase 5%-10% in Q3 compared to 2025. Exportable avocado production from Mission-owned farms in Peru is expected to range from 120 million to 130 million pounds.
On the other hand, pricing is expected to be approximately 15% lower year-on-year, driven by higher volumes in the US and international markets.
Finally, supply conditions have improved, and management expects to deliver solid performance in the back half of the year.
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