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Millennials who devour avocado toast may not be able to afford a home, but they can soak in the stocks that sell fruit.
Listed on Nasdaq in October, California-based Mission Produce offers avocado’s rare and pure play. The company procures, packs and distributes primarily from producers in Mexico, California and Peru. Mission also has its own farming operations in Peru, Guatemala and Colombia, producing about 11% of the avocados sold in 2019.
According to the USDA, per capita consumption of avocado in the United States is rich in one unsaturated fat that fights bad cholesterol, boosted by health trends and the popularity of Mexican food, from 3.2 pounds in 2015 to 2019. Increased to 8.5 pounds. Consumption declined in 2020, probably because the pandemic hurt demand from restaurants.
Avocado prices began to soften in the second half of 2020, hitting record highs in 2019. This is because Mexico is by far the largest exporter and has produced a good harvest. Average selling prices for the six months to April in the first half of the mission were down 15% year-on-year, but gross profit increased 22% due to increased sales of avocado. It also maintained a stable margin per pound.
This avocado stock does not toast your portfolio
Source link This avocado stock does not toast your portfolio