Mission Produce Q1 2024 Earnings Report
Key Takeaways
Mission Produce reported a strong start to fiscal year 2024, with a 21% increase in total revenue to $258.7 million. Net income was breakeven, or $0.00 per diluted share, compared to a loss of $(8.8) million, or $(0.12) per diluted share, for the same period last year. Adjusted EBITDA significantly improved to $19.2 million, driven by higher per-unit margins in the Marketing & Distribution and Blueberries segments.
Total revenue increased by 21% to $258.7 million, driven by a 23% increase in average per-unit avocado selling prices.
Net income was breakeven, or $0.00 per diluted share, compared to a net loss of $(8.8) million, or $(0.12) per diluted share, for the same period last year.
Adjusted EBITDA increased significantly to $19.2 million, compared to $2.3 million in the same period last year.
Gross profit increased by $19.7 million to $28.7 million, with gross profit percentage increasing to 11.1% of revenue.
Mission Produce
Mission Produce
Mission Produce Revenue by Segment
Forward Guidance
The company provided the following industry outlooks that will drive performance for the second quarter of fiscal year 2024.
Positive Outlook
- The industry is expecting avocado volumes to be relatively flat in the fiscal 2024 second quarter versus the prior year period.
- California harvest volumes should begin to build toward the middle of the quarter, followed by small amounts of Peruvian volume later in the fiscal second quarter.
- Avocado pricing is expected to be slightly higher on a sequential basis and be approximately 10-15% higher than the $1.30 per pound average experienced in second quarter of fiscal 2023.
- Harvest timing shifts relative to last year have extended the Company’s Peruvian blueberry season this year.
- Approximately 20% of the harvest will be sold through in the fiscal second quarter, whereas the season was substantially complete in the prior year period.
Challenges Ahead
- Industry volumes from Mexico are expected to taper off in the latter part of the quarter as the season nears completion.
- Sales pricing is expected to decline sequentially in the fiscal second quarter in response to increased industry volume resulting from the expectation for other source regions to begin seasonal harvests on a normal cadence.
Revenue & Expenses
Visualization of income flow from segment revenue to net income