Mission Produce (Mission Produce) Gross Margin % : 11.09% (As of Jan. 2024)

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What is Mission Produce Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mission Produce's Gross Profit for the three months ended in Jan. 2024 was $28.7 Mil. Mission Produce's Revenue for the three months ended in Jan. 2024 was $258.7 Mil. Therefore, Mission Produce's Gross Margin % for the quarter that ended in Jan. 2024 was 11.09%.

Warning Sign:

Mission Produce Inc gross margin has been in long-term decline. The average rate of decline per year is -1.5%.

The historical rank and industry rank for Mission Produce's Gross Margin % or its related term are showing as below:

AVO' s Gross Margin % Range Over the Past 10 Years
Min: 6.28 Med: 11.35 Max: 17.51
Current: 10.31

During the past 6 years, the highest Gross Margin % of Mission Produce was 17.51%. The lowest was 6.28%. And the median was 11.35%.

AVO's Gross Margin % is ranked worse than
85.44% of 309 companies
in the Retail - Defensive industry
Industry Median: 22.82 vs AVO: 10.31

Mission Produce had a gross margin of 11.09% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mission Produce was -1.50% per year.

Mission Produce Gross Margin % Historical Data

The historical data trend for Mission Produce's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mission Produce Gross Margin % Chart

Mission Produce Annual Data

Trend

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Gross Margin %

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17.51

14.45

13.96

8.59

8.73

Mission Produce Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															4.22	8.19	10.86	10.78	11.09

Competitive Comparison of Mission Produce's Gross Margin %

For the Food Distribution subindustry, Mission Produce's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Mission Produce's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Mission Produce's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mission Produce's Gross Margin % falls into.

Mission Produce Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Mission Produce's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )	=	Gross Profit (A: Oct. 2023 )	/	Revenue (A: Oct. 2023 )
	=	83.3	/	953.9
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(953.9 - 870.6)	/	953.9
	=	8.73 %

Mission Produce's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	28.7	/	258.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(258.7 - 230)	/	258.7
	=	11.09 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Mission Produce (NAS:AVO) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Mission Produce had a gross margin of 11.09% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Mission Produce Gross Margin % Related Terms

Thank you for viewing the detailed overview of Mission Produce's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Mission Produce (Mission Produce) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Mission Produce Inc (NAS:AVO) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

5YM:Germany

Address

2710 Camino Del Sol, Oxnard, CA, USA, 93030

Website

https://www.missionproduce.com

Mission Produce Inc is engaged in the business of producing and distributing avocados, serving retail, wholesale, and food service customers. Also, the company provides additional services like ripening, bagging, custom packing, and logistical management. The company's operating segments include Marketing and Distribution and International Farming and Blueberries. It generates maximum revenue from the Marketing and Distribution segment. The Marketing and Distribution segment sources fruit mainly from growers and then distributes fruit through a distribution network.

Executives

Bryan E Giles	officer: CHIEF FINANCIAL OFFICER	C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Stephen J Barnard	director, officer: PRESIDENT AND CEO	C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Tony B Sarsam	director	850 76TH STREET SW, PO BOX 8700, GRAND RAPIDS MI 49518
Luis A Gonzalez	director, 10 percent owner	C/O MISSION PRODUCE,INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Juan R Wiesner	officer: See Remarks	C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Timothy Bulow	officer: President and COO	2710 CAMINO DEL SOL, OXNARD CA 93030
Bonnie Cruickshank Lind	director	3460 PRESTON RIDGE ROAD, ALPHARETTA GA 30005
Shaunte Danielle Mears-watkins	director	2710 CAMINO DEL SOL, OXNARD CA 93030
Joanne C Wu	officer: General Counsel and Secretary	C/O MISSION PRODUCE, INC., 2710 CAMINO DEL SOL, OXNARD CA 93030
Michael A Browne	officer: CHIEF OPERATING OFFICER	C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Jay A Pack	director	C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Steve A Beebe	director	C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Ross W Wileman	officer: See Remarks	C/O MISSION PRODUCE, INC., 2500 E. VINEYARD AVENUE, SUITE 300, OXNARD CA 93036
Bruce C. Taylor	director, 10 percent owner	C/O TAYLOR FARMS, 911-B BLANCO CIRCLE, SALINAS CA 93901
Linda B Segre	director	2180 RUTHERFORD ROAD, CARLSBAD CA 92008