Loading...
•
Apr 30, 2024
Mission Produce Q2 2024 Earnings Report
Achieved record second quarter results driven by higher price and volume in the Marketing & Distribution segment.
Key Takeaways
Mission Produce reported a strong second quarter with a 35% increase in total revenue to $297.6 million, driven by higher avocado prices and volumes in the Marketing & Distribution segment, as well as increased blueberry revenue. Net income was $7.0 million, a significant improvement from the previous year's net loss of $(4.6) million. Adjusted EBITDA also saw a substantial increase, reaching $20.2 million compared to $7.6 million in the same period last year.
Total revenue increased by 35% to $297.6 million due to higher avocado prices and volumes.
Net income improved to $7.0 million, or $0.10 per diluted share, compared to a net loss of $(4.6) million, or $(0.07) per diluted share, in the prior year.
Adjusted EBITDA increased by 166% to $20.2 million, driven by stronger per-unit margins and cost savings.
Blueberry revenue increased to $10.0 million due to favorable harvest season timing.
Mission Produce
Mission Produce
Mission Produce Revenue by Segment
Revenue by Segment
Marketing & Distribution Revenue
CapyFin.comInternational Farming Revenue
CapyFin.comBlueberries Revenue
CapyFin.com Forward Guidance
For the third quarter of fiscal year 2024, Mission Produce anticipates that warmer temperatures correlated with El Niño will negatively affect harvest yields for the second half of the fiscal year, reducing exportable volumes from owned farms to be more than 50% lower than recent seasons. Overall industry volumes are expected to decline by 10-15% in the fiscal 2024 third quarter versus the prior year period, primarily due to an earlier conclusion to the 2023/2024 Mexican harvest season and a weaker Peruvian harvest outlook. Pricing is expected to be relatively flat on a sequential basis, which translates to an increase of approximately 15% on a year-over-year basis as compared to the $1.36 per pound average experienced in third quarter of fiscal 2023. Capital expenditures are now expected in the range of $40 to $45 million.
Positive Outlook
- Pricing is expected to be relatively flat on a sequential basis, which translates to an increase of approximately 15% on a year-over-year basis as compared to the $1.36 per pound average experienced in third quarter of fiscal 2023.
- Cost optimization initiatives are expected to partially mitigate the impact of the smaller crop and translate into improved operational efficiencies when growing conditions improve.
- Mission remains in great position with a diversified network of global assets.
- Company expects to utilize the strength of our world-class sourcing team to access other third party fruit to augment the shortages from Peru and meet customer demand during the Mexican low-season.
- Capital expenditures now expected in the range of $40 to $45 million, reflecting an acceleration of planned investment in the Company’s blueberry joint venture to support near-term growth utilizing operating cash flows generated during the strong 2023/2024 harvest season.
Challenges Ahead
- Warmer temperatures correlated with El Niño have persisted through the development of our 2024 Peruvian avocado crop.
- The Company expects these warmer temperatures to negatively affect harvest yields for the second half of the fiscal year, reducing exportable volumes from owned farms to be more than 50% lower than recent seasons.
- The Company expects the decrease in volume will negatively impact absorption of fixed costs at its Peruvian farms.
- Overall industry volumes are expected to decline by 10-15% in the fiscal 2024 third quarter versus the prior year period, primarily due to an earlier conclusion to the 2023/2024 Mexican harvest season and a weaker Peruvian harvest outlook.
- Lower volumes are expected to generally support higher pricing, the Company does not expect higher pricing levels to offset the negative impact of volume decreases on gross profit for the International Farming segment for the fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income