Mission Produce has set out a plan to double sales and triple adjusted EBITDA by 2035.
The targets are part of a new five-year growth strategy at the US avocado supplier, which in May finalised its acquisition of local peer Calavo Growers.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
At an investor event in New York yesterday (8 October), the Nasdaq-listed group also set out targets for sales and adjusted EBITDA over the next five years.
In the year to 31 October 2025, Mission Produce’s revenue stood at $1.39bn. The company’s adjusted EBITDA was $110.8m.
In Calavo’s 2025 financial year, the group generated net sales of $648m and adjusted EBITDA of $41m.
Mission Produce told investors yesterday it is aiming for $4bn in sales, including M&A, in 2035. It is setting out to hit $450m in adjusted EBITDA in the same year.
Over the next five years, the company is targeting “mid-single-digit organic sales growth”.
It is also aiming for around 300 basis points of margin expansion over the same period.
Mission Produce said better margins should come from an “improved portfolio mix, Calavo synergies, SG&A leverage and greater asset utilisation”.
The plan also includes bringing net leverage, defined as total debt less cash, below 1.5 times adjusted EBITDA.
The company is targeting “high-single-digit organic adjusted EBITDA growth” over the next five years, “high-single-digit to double-digit annual shareholder returns”.
President and CEO John Pawlowski said: “Over more than 40 years, we built the modern avocado category and created a platform that would be difficult to replicate.
“Our next chapter is about fully leveraging that platform and compounding the value we deliver to shareholders by growing faster than our markets, expanding margins, converting more earnings into cash and deploying that cash with discipline.”
Mission Produce completed the acquisition of fellow avocado supplier Calavo Growers in May and has been working to integrate the operations.
Last month, while announcing third-quarter fiscal 2026 results, the company raised its annualised Calavo synergy target from at least $25m to more than $30m, citing “higher-than-expected SG&A savings and network efficiencies”.
It expects a “small contribution” in the fourth quarter of fiscal 2026 and still aims to reach the full run rate within 18 months of closing.
Mission CFO Bryan Giles said: “Mission is entering a financially compelling stage, with the majority of the heavy investment required to build our platform behind us and the Calavo acquisition adding scale, new capabilities and a meaningful synergy opportunity.”
In the fiscal third quarter that ended 31 July, the avocado group reported revenue of $450m. The figure represented a 26% year-on-year jump driven by a 38% increase in avocado volumes.
However, gross profit slipped to $44.7m in the third quarter of fiscal 2026 from $45.1m a year earlier. Mission Produce said the fall reflected a decrease in the gross profit from its International Farming division due to “lower average sales prices” attributed to higher global supply of avocados in the current year.
The company also posted a net loss attributable to the company of $6.5m, or $0.08 per diluted share, in the three-month period. The result included $25.4m of pre-tax Calavo acquisition-related costs.
Adjusted net income fell to $15m, or $0.18 per share, from $18.2m, or $0.26 per share, recorded last year. Adjusted EBITDA in the third quarter was $32.4m, against $32.6m a year earlier, which the company said “exceeded expectations”.
Mission also reaffirmed its second-half fiscal 2026 adjusted EBITDA guidance of $84m to $88m. This includes fourth-quarter adjusted EBITDA of $52m to $55m.
