Mission Produce Sees Q3 Capital Expenditures Now Expected In The Range Of $40M-$45M
Portfolio Pulse from Benzinga Newsdesk
Mission Produce (AVO) has updated its Q3 capital expenditures to $40M-$45M. Warmer temperatures due to El Niño are expected to reduce Peruvian avocado harvest yields by over 50%, negatively impacting gross profit despite higher pricing. Overall industry volumes are expected to decline by 10-15% in Q3 2024.
June 06, 2024 | 8:25 pm
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Mission Produce (AVO) has revised its Q3 capital expenditures to $40M-$45M. Warmer temperatures due to El Niño are expected to significantly reduce Peruvian avocado harvest yields, negatively impacting gross profit despite higher pricing. Overall industry volumes are expected to decline by 10-15% in Q3 2024.
The significant reduction in Peruvian avocado harvest yields due to warmer temperatures will negatively impact Mission Produce's gross profit despite higher pricing. The overall industry volume decline of 10-15% in Q3 2024 further exacerbates the negative outlook. The updated capital expenditures reflect an acceleration of planned investments, which may strain financials in the short term.
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