Mission Produce™ Announces Fiscal 2024 Second Quarter Financial Results
Mission Produce (Nasdaq: AVO) reported fiscal second quarter 2024 results with a 35% revenue increase to $297.6 million, driven by a 22% rise in per-unit avocado prices and 8% increase in avocado volume sold. Net income was $7.0 million, or $0.10 per diluted share, compared to a net loss of $(4.6) million last year. Adjusted net income was $9.8 million, or $0.14 per diluted share. Adjusted EBITDA rose to $20.2 million from $7.6 million. Cash flow from operations improved to $12.9 million. Revenue growth in the Marketing & Distribution segment was significant, with a 33% rise to $287.1 million. However, the Peruvian avocado crop faced challenges due to El Niño, impacting production volumes negatively.
- Total revenue increased by 35% to $297.6 million.
- Net income of $7.0 million, compared to a net loss of $(4.6) million last year.
- Adjusted net income significantly increased to $9.8 million from $0.5 million.
- Adjusted EBITDA rose to $20.2 million from $7.6 million.
- Cash flow from operations improved to $12.9 million from a negative $(26.1) million.
- Marketing & Distribution revenue increased by 33% to $287.1 million.
- Blueberry segment revenue jumped to $10.0 million from $1.7 million last year.
- Gross profit increased by $12.9 million.
- International Farming segment revenue decreased to $1.4 million from $6.0 million.
- El Niño negatively affected Peruvian avocado crop, reducing production volumes.
- Expected decline in overall industry volumes by 10-15% in Q3 due to previous season conclusions.
- Capital expenditures for FY2024 projected at $40-$45 million, reflecting increased spending.
Insights
Mission Produce has posted a record revenue increase of 35% for its fiscal second quarter of 2024. This robust growth, driven primarily by a 22% rise in per-unit avocado selling prices and an 8% increase in avocado volume sold, highlights strong consumer demand. The company's net income of $7.0 million compared to a net loss of $(4.6) million in the same period last year is a significant turnaround, demonstrating effective cost management and improved operational efficiency. Adjusted EBITDA also saw a marked improvement, more than doubling to
The reduction in SG&A expenses by 3%, alongside increased gross profit and margin improvements, is indicative of successful cost-control strategies. The substantial improvement in cash flow from operations, moving from a deficit of
As a retail investor, this signifies a potentially lucrative outlook in the short term, despite anticipated challenges due to El Niño's impact on the Peruvian avocado crop. The company's strategy to augment shortages with third-party fruit and ongoing cost optimization initiatives, such as a targeted
The notable increase in avocado prices and sales volume in Mission Produce’s Marketing & Distribution segment indicates strong market demand for avocados. This trend is likely driven by broader consumer preferences for healthier food options, which avocados fit well into. The company's ability to leverage this demand and implement effective pricing strategies has translated into significant revenue growth.
The Blueberries segment also showed strong performance, with a significant revenue increase to
However, the outlook for the next quarter suggests potential challenges with the Peruvian avocado crop due to warmer temperatures. This could contract supply and affect prices, impacting overall profitability. Nevertheless, Mission Produce's proactive approach in sourcing third-party fruit and focusing on cost optimization should help mitigate some of these risks.
For retail investors, it's important to consider both the company's strong current performance and its strategies for managing upcoming challenges.
Achieves record second quarter results driven by higher price and volume in the Marketing & Distribution segment
OXNARD, Calif., June 06, 2024 (GLOBE NEWSWIRE) -- Mission Produce, Inc. (Nasdaq: AVO) (“Mission” or the “Company”), a world leader in sourcing, producing, and distributing fresh Hass avocados with additional offerings in mangos and blueberries, today reported its financial results for the fiscal second quarter ended April 30, 2024.
Fiscal Second Quarter 2024 Financial Overview:
- Total revenue increased
35% to$297.6 million compared to the same period last year driven primarily by a22% increase in average per-unit avocado selling prices and8% increase in avocado volume sold - Net income of
$7.0 million , or$0.10 per diluted share, compared to a net loss of$(4.6) million , or$(0.07) per diluted share, for the same period last year - Adjusted net income of
$9.8 million , or$0.14 per diluted share, compared to$0.5 million , or$0.01 per diluted share, for the same period last year - Adjusted EBITDA of
$20.2 million , compared to$7.6 million in the same period last year - Cash flow from operations for the six months ended April 30, 2024 was
$12.9 million , compared to cash used of$(26.1) million in the prior year period.
CEO Message
“We are pleased to deliver a second consecutive quarter of record adjusted EBITDA results, demonstrating continued strong momentum in per-unit margins which resulted in a
Mr. Barnard continued, “Looking to the second half of the year, while El Niño weather conditions had appeared to have eased, we are still seeing its impact on the development of the Peruvian avocado crop for this year, resulting in notable decreases in industry and owned production volumes. In the second quarter, we continued to advance our rigorous cost optimization initiative in Peru and are on track to deliver approximately
Fiscal Second Quarter 2024 Consolidated Financial Review
Total revenue for the second quarter of fiscal 2024 increased
Gross profit increased
Selling, general and administrative expense (“SG&A”) for the second quarter decreased
Net income for the second quarter of fiscal 2024 was
Adjusted net income for the second quarter of fiscal 2024 was
Adjusted EBITDA was
Fiscal Second Quarter Business Segment Performance
Marketing & Distribution
Net sales in the Marketing & Distribution segment increased
Segment adjusted EBITDA increased
International Farming
Total sales in the International Farming segment for the second quarter of fiscal 2024 were
Segment adjusted EBITDA for the second quarter was
Blueberries
Sales in the Blueberries segment have traditionally been concentrated in the first and fourth quarters of the fiscal year in alignment with the Peruvian blueberry harvest season, which typically runs from July through February.
Net sales in the Blueberries segment increased
Segment adjusted EBITDA increased by
Balance Sheet and Cash Flow
Cash and cash equivalents were
The Company’s operating cash flows are seasonal in nature and can be temporarily influenced by working capital shifts resulting from varying payment terms to growers in different source regions. In addition, the Company is building its growing crops inventory in its International Farming segment during the first half of the year for ultimate harvest and sale that will occur during the second half of the fiscal year. While these increases in working capital can cause operating cash flows to be unfavorable in individual quarters, it is not indicative of operating cash performance that management expects to realize for the full year.
Net cash provided by operating activities was
Capital expenditures were
Outlook
For the third quarter of fiscal year 2024, the Company is providing the following industry outlooks that will drive performance:
- 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. Though 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. - 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 now expected in the range of
$40 t o$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.
Conference Call and Webcast
As previously announced, the Company will host a conference call to discuss its second quarter of fiscal 2024 financial results today at 5:30 p.m. ET. The conference call can be accessed live over the phone by dialing (877) 407-9039 or for international callers by dialing (201) 689-8470. A replay of the call will be available through June 20, 2024 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13746812.
The live audio webcast of the conference call will be accessible in the News & Events section on the Company's Investor Relations website at https://investors.missionproduce.com. An archived replay of the webcast will also be available shortly after the live event has concluded.
Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures “adjusted net income” and “adjusted EBITDA.” Management believes these measures provide useful information for analyzing the underlying business results. These measures are not in accordance with, nor are they a substitute for or superior to, the comparable financial measures by generally accepted accounting principles.
Adjusted net income (loss) refers to net income (loss) attributable to Mission Produce, before stock-based compensation expense, unrealized gain (loss) on derivative financial instruments, foreign currency gain (loss), farming costs for nonproductive orchards (which represents land lease costs), recognition of deferred ERP costs, transaction costs, amortization of inventory adjustments and intangible asset recognized from business combinations, further adjusted by any special, non-recurring, or one-time items such as remeasurement, impairment or discrete tax charges that are distortive to results, and tax effects of these items, if any, and the tax-effected impact of these non-GAAP adjustments attributable to noncontrolling interest, allocable to the noncontrolling owners based on their percentage of ownership interest.
Adjusted EBITDA refers to net income (loss), before interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, other income (expense), and income (loss) from equity method investees, further adjusted by asset impairment and disposals, net of insurance recoveries, farming costs for nonproductive orchards (which represents land lease costs), recognition of deferred ERP costs, transaction costs, amortization of inventory adjustments recognized from business combinations, and any special, non-recurring, or one-time items such as remeasurements or impairments, and any portion of these items attributable to the noncontrolling interest, all of which are excluded from the results the CEO reviews uses to assess segment performance and results.
Reconciliations of these non-GAAP financial measures to the most comparable GAAP measure are provided in the table at the end of this press release.
About Mission Produce, Inc.
Mission Produce is a global leader in the worldwide avocado business with additional offerings in mangos and blueberries. Since 1983, Mission Produce has been sourcing, producing and distributing fresh Hass avocados, and currently services retail, wholesale and foodservice customers in over 25 countries. The vertically integrated Company owns and operates four state-of-the-art packing facilities in key growing locations globally, including California, Mexico and Peru and has additional sourcing capabilities in Chile, Colombia, the Dominican Republic, Guatemala, Brazil, Ecuador, South Africa and more, which allow the company to provide a year-round supply of premium fruit. Mission’s global distribution network includes strategically positioned forward distribution centers across key markets throughout North America, China, Europe, and the UK, offering value-added services such as ripening, bagging, custom packing and logistical management. For more information, please visit www.missionproduce.com.
Forward-Looking Statements
Statements in this press release that are not historical in nature are forward-looking statements that, within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involve known and unknown risks and uncertainties. Words such as "may", "will", "expect", "intend", "plan", "believe", "seek", "could", "estimate", "judgment", "targeting", "should", "anticipate", "goal" and variations of these words and similar expressions, are also intended to identify forward-looking statements. The forward-looking statements in this press release address a variety of subjects, including statements about our short-term and long-term assumptions, goals and targets. Many of these assumptions relate to matters that are beyond our control and changing rapidly. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurances that our expectations will be attained. Readers are cautioned that actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including: limitations regarding the supply of fruit, either through purchasing or growing; fluctuations in the market price of fruit; increasing competition; risks associated with doing business internationally, including Mexican and Peruvian economic, political and/or societal conditions; inflationary pressures; establishment of sales channels and geographic markets; loss of one or more of our largest customers; general economic conditions or downturns; supply chain failures or disruptions; disruption to the supply of reliable and cost-effective transportation; failure to recruit or retain employees, poor employee relations, and/or ineffective organizational structure; inherent farming risks, including climate change; seasonality in operating results; failures associated with information technology infrastructure, system security and cyber risks; new and changing privacy laws and our compliance with such laws; food safety events and recalls; failure to comply with laws and regulations; changes to trade policy and/or export/import laws and regulations; risks from business acquisitions, if any; lack of or failure of infrastructure; material litigation or governmental inquiries/actions; failure to maintain or protect our brand; changes in tax rates or international tax legislation; risks associated with global conflicts; inability to accurately forecast future performance; the viability of an active, liquid, and orderly market for our common stock; volatility in the trading price of our common stock; concentration of control in our executive officers, and directors over matters submitted to stockholders for approval; limited sources of capital appreciation; significant costs associated with being a public company and the allocation of significant management resources thereto; reliance on analyst reports; failure to maintain proper and effective internal control over financial reporting; restrictions on takeover attempts in our charter documents and under Delaware law; the selection of Delaware as the exclusive forum for substantially all disputes between us and our stockholders; risks related to restrictive covenants under our credit facility, which could affect our flexibility to fund ongoing operations, uses of capital and strategic initiatives, and, if we are unable to maintain compliance with such covenants, lead to significant challenges in meeting our liquidity requirements and acceleration of our debt; and other risks and factors discussed from time to time in our Annual and Quarterly Reports on Forms 10-K and 10-Q and in our other filings with the Securities and Exchange Commission.
You can obtain copies of our SEC filings on the SEC’s website at www.sec.gov. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation does not intend to, nor does it assume any obligation to, update or supplement any forward-looking statements after the date hereof to reflect actual results or future events or circumstances.
Contacts:
Investor Relations
ICR
Jeff Sonnek
646-277-1263
jeff.sonnek@icrinc.com
Media
Jenna Aguilera
Marketing Communications Manager
Mission Produce, Inc.
press@missionproduce.com
| MISSION PRODUCE, INC. | |||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| (In millions, except for shares) | April 30, 2024 | October 31, 2023 | |||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 46.2 | $ | 42.9 | |||
| Restricted cash | 1.0 | 0.3 | |||||
| Accounts receivable | |||||||
| Trade, net of allowances | 99.5 | 74.1 | |||||
| Grower and fruit advances | 3.2 | 0.9 | |||||
| Other | 12.9 | 12.4 | |||||
| Inventory | 94.9 | 70.8 | |||||
| Prepaid expenses and other current assets | 8.2 | 9.1 | |||||
| Income taxes receivable | 10.4 | 9.6 | |||||
| Total current assets | 276.3 | 220.1 | |||||
| Property, plant and equipment, net | 523.1 | 523.2 | |||||
| Operating lease right-of-use assets | 70.1 | 72.4 | |||||
| Equity method investees | 29.6 | 31.0 | |||||
| Deferred income tax assets, net | 8.8 | 8.5 | |||||
| Goodwill | 39.4 | 39.4 | |||||
| Intangible asset, net | — | 0.5 | |||||
| Other assets | 19.6 | 19.7 | |||||
| Total assets | $ | 966.9 | $ | 914.8 | |||
| Liabilities and Equity | |||||||
| Liabilities | |||||||
| Accounts payable | $ | 26.4 | $ | 27.2 | |||
| Accrued expenses | 32.6 | 26.4 | |||||
| Income taxes payable | 1.7 | 1.6 | |||||
| Grower payables | 49.2 | 26.4 | |||||
| Short-term borrowings | — | 2.8 | |||||
| Loans from noncontrolling interest holders—current portion | 0.2 | 0.5 | |||||
| Notes payable | 0.5 | — | |||||
| Long-term debt—current portion | 3.1 | 3.4 | |||||
| Operating leases—current portion | 6.1 | 6.6 | |||||
| Finance leases—current portion | 1.9 | 2.6 | |||||
| Total current liabilities | 121.7 | 97.5 | |||||
| Long-term debt, net of current portion | 167.1 | 148.6 | |||||
| Loans from noncontrolling interest holders, net of current portion | 1.8 | 2.5 | |||||
| Operating leases, net of current portion | 69.1 | 71.0 | |||||
| Finance leases, net of current portion | 19.9 | 14.7 | |||||
| Income taxes payable | 1.3 | 2.3 | |||||
| Deferred income tax liabilities, net | 22.7 | 23.5 | |||||
| Other long-term liabilities | 23.3 | 26.4 | |||||
| Total liabilities | 426.9 | 386.5 | |||||
| Equity | |||||||
| Mission Produce shareholders' equity | 513.3 | 503.6 | |||||
| Noncontrolling interest | 26.7 | 24.7 | |||||
| Total equity | 540.0 | 528.3 | |||||
| Total liabilities and equity | $ | 966.9 | $ | 914.8 | |||
| MISSION PRODUCE, INC. | |||||||||||||||
| Condensed Consolidated Statements of Income (Loss) (Unaudited) | |||||||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| (In millions, except for share and per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 297.6 | $ | 221.1 | $ | 556.3 | $ | 434.6 | |||||||
| Cost of sales | 266.6 | 203.0 | 496.6 | 407.5 | |||||||||||
| Gross profit | 31.0 | 18.1 | 59.7 | 27.1 | |||||||||||
| Selling, general and administrative expenses | 18.7 | 19.3 | 39.4 | 38.4 | |||||||||||
| Operating income (loss) | 12.3 | (1.2 | ) | 20.3 | (11.3 | ) | |||||||||
| Interest expense | (3.4 | ) | (2.7 | ) | (6.7 | ) | (5.1 | ) | |||||||
| Equity method income | 0.5 | 0.4 | 0.9 | 1.4 | |||||||||||
| Other income (expense), net | 1.0 | 0.6 | — | (0.2 | ) | ||||||||||
| Income (loss) before income taxes | 10.4 | (2.9 | ) | 14.5 | (15.2 | ) | |||||||||
| Provision for income taxes | 3.4 | 1.8 | 5.5 | 0.1 | |||||||||||
| Net income (loss) | $ | 7.0 | $ | (4.7 | ) | $ | 9.0 | $ | (15.3 | ) | |||||
| Less: | |||||||||||||||
| Net (loss) income attributable to noncontrolling interest | — | (0.1 | ) | 2.0 | (1.9 | ) | |||||||||
| Net income (loss) attributable to Mission Produce | $ | 7.0 | $ | (4.6 | ) | $ | 7.0 | $ | (13.4 | ) | |||||
| Net income (loss) per share attributable to Mission | |||||||||||||||
| Basic | $ | 0.10 | $ | (0.07 | ) | $ | 0.10 | $ | (0.19 | ) | |||||
| Diluted | $ | 0.10 | $ | (0.07 | ) | $ | 0.10 | $ | (0.19 | ) | |||||
| Weighted average shares of common stock outstanding, used in computing diluted earnings per share | 71,003,563 | 70,744,688 | 70,959,716 | 70,716,273 | |||||||||||
| MISSION PRODUCE, INC. | |||||||
| Condensed Consolidated Statements of Cash Flow (Unaudited) | |||||||
| Six Months Ended April 30, | |||||||
| (In millions) | 2024 | 2023 | |||||
| Operating Activities | |||||||
| Net income (loss) | $ | 9.0 | $ | (15.3 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||||||
| Depreciation and amortization | 18.6 | 15.2 | |||||
| Amortization of debt issuance costs | 0.1 | 0.1 | |||||
| Equity method income | (0.9 | ) | (1.4 | ) | |||
| Noncash lease expense | 3.1 | 2.9 | |||||
| Stock-based compensation | 3.0 | 2.0 | |||||
| Dividends received from equity method investees | 3.2 | 2.7 | |||||
| Losses on asset impairment, disposals and sales, net of insurance recoveries | 0.4 | 0.8 | |||||
| Deferred income taxes | (1.0 | ) | (0.9 | ) | |||
| Other | 1.1 | — | |||||
| Effect on cash of changes in operating assets and liabilities: | |||||||
| Trade accounts receivable | (25.2 | ) | (15.8 | ) | |||
| Grower fruit advances | (2.3 | ) | (2.5 | ) | |||
| Other receivables | (0.5 | ) | 3.2 | ||||
| Inventory | (20.8 | ) | (21.1 | ) | |||
| Prepaid expenses and other current assets | 0.9 | 1.2 | |||||
| Income taxes receivable | (0.9 | ) | (4.4 | ) | |||
| Other assets | 0.3 | 1.4 | |||||
| Accounts payable and accrued expenses | 11.2 | (2.0 | ) | ||||
| Income taxes payable | (0.9 | ) | (1.0 | ) | |||
| Grower payables | 22.5 | 8.2 | |||||
| Operating lease liabilities | (3.0 | ) | (2.3 | ) | |||
| Other long-term liabilities | (5.0 | ) | 2.9 | ||||
| Net cash provided by (used in) operating activities | $ | 12.9 | $ | (26.1 | ) | ||
| Investing Activities | |||||||
| Purchases of property, plant and equipment | (17.7 | ) | (34.9 | ) | |||
| Proceeds from sale of property, plant and equipment | — | 0.1 | |||||
| Investment in equity method investees | (0.6 | ) | (0.3 | ) | |||
| Purchase of other investment | — | (2.3 | ) | ||||
| Other | — | (0.1 | ) | ||||
| Net cash used in investing activities | $ | (18.3 | ) | $ | (37.5 | ) | |
| Financing Activities | |||||||
| Borrowings on revolving credit facility | 40.0 | 135.0 | |||||
| Payments on revolving credit facility | (20.0 | ) | (100.0 | ) | |||
| Repayment of short-term borrowings | (2.8 | ) | (2.5 | ) | |||
| Principal payments on long-term debt obligations | (1.8 | ) | (1.8 | ) | |||
| Principal payments on finance lease obligations | (2.6 | ) | (2.0 | ) | |||
| Payments for long-term supplier financing | (0.3 | ) | — | ||||
| Payments to noncontrolling interest holder for long-term supply financing | (1.9 | ) | — | ||||
| Principal payments on loans due to noncontrolling interest holder | (0.5 | ) | — | ||||
| Payments of minimum withholding taxes on net share settlement of equity awards | (0.8 | ) | (0.4 | ) | |||
| Proceeds from loan from noncontrolling interest holder | — | 2.4 | |||||
| Equity contributions from noncontrolling interest holders | — | 1.4 | |||||
| Net cash provided by financing activities | $ | 9.3 | $ | 32.1 | |||
| Effect of exchange rate changes on cash | 0.1 | (0.2 | ) | ||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 4.0 | (31.7 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 43.2 | 53.9 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 47.2 | $ | 22.2 | |||
| Summary of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets: | |||||||
| Cash and cash equivalents | $ | 46.2 | $ | 20.9 | |||
| Restricted cash | 1.0 | 1.3 | |||||
| Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ | 47.2 | $ | 22.2 | |||
MISSION PRODUCE, INC.
Reconciliation of Non-GAAP Financial Measures to GAAP (Unaudited)
The following tables reconcile the non-GAAP measures “adjusted net income” and “adjusted EBITDA” to their comparable GAAP measures. Refer also to “Non-GAAP Financial Measures” earlier in this press release.
Adjusted Net Income (Loss)
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| (In millions, except for per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net loss attributable to Mission Produce | $ | 7.0 | $ | (4.6 | ) | $ | 7.0 | $ | (13.4 | ) | |||||
| Stock-based compensation | 1.6 | 1.3 | 3.0 | 2.0 | |||||||||||
| Unrealized loss on derivative financial instruments | 0.2 | 0.5 | 0.4 | 1.1 | |||||||||||
| Foreign currency transaction (gain) loss | (0.1 | ) | 0.4 | 1.3 | 1.3 | ||||||||||
| Asset impairment and disposals, net of insurance recoveries | 0.2 | 0.5 | 0.4 | 0.8 | |||||||||||
| Farming costs for nonproductive orchards(1) | 1.0 | 0.9 | 2.2 | 1.8 | |||||||||||
| Recognition of deferred ERP costs | 0.6 | 0.5 | 1.1 | 1.1 | |||||||||||
| Depreciation-blueberries(2) | — | — | 4.1 | — | |||||||||||
| Severance | — | — | 1.3 | — | |||||||||||
| Legal settlement | — | — | 0.2 | — | |||||||||||
| Amortization of intangible asset recognized from business combination | 0.2 | — | 0.5 | 1.2 | |||||||||||
| Transaction costs | — | 0.2 | — | 0.3 | |||||||||||
| Amortization of inventory adjustment recognized from business combination | — | — | — | 0.7 | |||||||||||
| Tax effects of adjustments to net loss attributable to Mission Produce(3) | (0.7 | ) | (0.9 | ) | (3.0 | ) | (2.2 | ) | |||||||
| Nonrecurring discrete tax charge | — | 1.8 | — | 1.8 | |||||||||||
| Noncontrolling interest(4) | (0.2 | ) | (0.1 | ) | (2.0 | ) | (1.0 | ) | |||||||
| Mission Produce adjusted net income (loss) | $ | 9.8 | $ | 0.5 | $ | 16.5 | $ | (4.5 | ) | ||||||
| Mission Produce adjusted net income (loss) per diluted share | $ | 0.14 | $ | 0.01 | $ | 0.23 | $ | (0.06 | ) | ||||||
(1) During the three months ended April 30, 2024,
(2) Represents accelerated depreciation expense for certain blueberry plants determined to have no remaining useful life.
(3) Tax effects are calculated using applicable rates that each adjustment relates to.
(4) Represents net income or loss attributable to noncontrolling interest plus the impact of tax-effected non-GAAP adjustments, allocable to the noncontrolling owner based on their percentage of ownership interest.
| MISSION PRODUCE, INC. | |||||||||||||||
| Adjusted EBITDA | |||||||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| (In millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Marketing and Distribution adjusted EBITDA | $ | 21.7 | $ | 8.6 | $ | 32.7 | $ | 13.2 | |||||||
| International Farming adjusted EBITDA | (2.2 | ) | (1.1 | ) | (2.7 | ) | (2.9 | ) | |||||||
| Blueberries adjusted EBITDA | 0.7 | 0.1 | 9.4 | (0.4 | ) | ||||||||||
| Total reportable segment adjusted EBITDA | 20.2 | 7.6 | $ | 39.4 | $ | 9.9 | |||||||||
| Net income (loss) | 7.0 | (4.7 | ) | 9.0 | (15.3 | ) | |||||||||
| Interest expense | 3.4 | 2.7 | 6.7 | 5.1 | |||||||||||
| Provision for income taxes | 3.4 | 1.8 | 5.5 | 0.1 | |||||||||||
| Depreciation and amortization(1) | 5.7 | 5.9 | 18.6 | 15.2 | |||||||||||
| Equity method income | (0.5 | ) | (0.4 | ) | (0.9 | ) | (1.4 | ) | |||||||
| Stock-based compensation | 1.6 | 1.3 | 3.0 | 2.0 | |||||||||||
| Asset impairment and disposals, net of insurance recoveries | 0.2 | 0.5 | 0.4 | 0.8 | |||||||||||
| Farming costs for nonproductive orchards | 0.3 | 0.4 | 0.8 | 0.8 | |||||||||||
| Recognition of deferred ERP costs | 0.6 | 0.5 | 1.1 | 1.1 | |||||||||||
| Severance | — | — | 1.3 | — | |||||||||||
| Legal settlement | — | — | 0.2 | — | |||||||||||
| Transaction costs | — | 0.2 | — | 0.3 | |||||||||||
| Amortization of inventory adjustment recognized from business combination | — | — | — | 0.7 | |||||||||||
| Other (income) expense, net | (1.0 | ) | (0.6 | ) | — | 0.2 | |||||||||
| Noncontrolling interest(2) | (0.5 | ) | — | (6.3 | ) | 0.3 | |||||||||
| Total adjusted EBITDA | $ | 20.2 | $ | 7.6 | $ | 39.4 | $ | 9.9 | |||||||
(1) Includes depreciation and amortization of purchase accounting assets of
(2) Represents net income (loss) attributable to noncontrolling interest plus the impact of non-GAAP adjustments, allocable to the noncontrolling owner based on their percentage of ownership interest.
| MISSION PRODUCE, INC. | |||||||||||||||||||||||||||||||
| Other Information (Unaudited) | |||||||||||||||||||||||||||||||
| Segment Sales | |||||||||||||||||||||||||||||||
| Marketing and Distribution | International Farming | Blueberries | Total | Marketing and Distribution | International Farming | Blueberries | Total | ||||||||||||||||||||||||
| Three Months Ended April 30, | |||||||||||||||||||||||||||||||
| (In millions) | 2024 | 2023 | |||||||||||||||||||||||||||||
| Third party sales | $ | 287.1 | $ | 0.5 | $ | 10.0 | $ | 297.6 | $ | 215.3 | $ | 4.1 | $ | 1.7 | $ | 221.1 | |||||||||||||||
| Affiliated sales | — | 0.9 | — | 0.9 | — | 1.9 | — | 1.9 | |||||||||||||||||||||||
| Total segment sales | 287.1 | 1.4 | 10.0 | 298.5 | 215.3 | 6.0 | 1.7 | 223.0 | |||||||||||||||||||||||
| Intercompany eliminations | — | (0.9 | ) | — | (0.9 | ) | — | (1.9 | ) | — | (1.9 | ) | |||||||||||||||||||
| Total net sales | $ | 287.1 | $ | 0.5 | $ | 10.0 | $ | 297.6 | $ | 215.3 | $ | 4.1 | $ | 1.7 | $ | 221.1 | |||||||||||||||
| Six Months Ended April 30, | |||||||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||||||
| Third party sales | $ | 511.7 | $ | 2.1 | $ | 42.5 | $ | 556.3 | $ | 397.1 | $ | 6.0 | $ | 31.5 | $ | 434.6 | |||||||||||||||
| Affiliated sales | — | 5.1 | — | 5.1 | — | 5.7 | — | 5.7 | |||||||||||||||||||||||
| Total segment sales | 511.7 | 7.2 | 42.5 | 561.4 | 397.1 | 11.7 | 31.5 | 440.3 | |||||||||||||||||||||||
| Intercompany eliminations | — | (5.1 | ) | — | (5.1 | ) | — | (5.7 | ) | — | (5.7 | ) | |||||||||||||||||||
| Total net sales | $ | 511.7 | $ | 2.1 | $ | 42.5 | $ | 556.3 | $ | 397.1 | $ | 6.0 | $ | 31.5 | $ | 434.6 | |||||||||||||||
| Avocado Sales | |||||||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Pounds of avocados sold(millions) | 168.6 | 155.9 | 320.1 | 308.2 | |||||||||||
| Average sales price per pound | $ | 1.59 | $ | 1.30 | $ | 1.50 | $ | 1.22 | |||||||
| Sales by Type | |||||||||||||||
| Three Months Ended April 30, | Six Months Ended April 30, | ||||||||||||||
| (In millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Avocado | $ | 267.5 | $ | 202.9 | $ | 479.8 | $ | 376.9 | |||||||
| Other | 30.1 | 18.2 | 76.5 | 57.7 | |||||||||||
| Total net sales | $ | 297.6 | $ | 221.1 | $ | 556.3 | $ | 434.6 | |||||||
FAQ
What were Mission Produce's Q2 2024 financial results?
How did Mission Produce’s avocado volume and prices change in Q2 2024?
What was the adjusted net income for Mission Produce in Q2 2024?
How did El Niño affect Mission Produce's operations in Q2 2024?
What were the changes in cash flow from operations for Mission Produce in Q2 2024?
What was the adjusted EBITDA for Mission Produce in Q2 2024?
How did the Blueberry segment perform for Mission Produce in Q2 2024?
What is the expected impact of El Niño on Mission Produce's future performance?
What was the revenue for the Marketing & Distribution segment in Q2 2024?
What are Mission Produce's capital expenditure expectations for FY2024?
