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Mission Produce™ Announces Fiscal 2024 Fourth Quarter Financial Results

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Mission Produce (AVO) reported strong fiscal Q4 2024 results with total revenue increasing 37% to $354.4 million. Net income reached $17.3 million ($0.24 per diluted share), up from $4.0 million in the same period last year. For the full year 2024, revenue grew 29% to $1.23 billion.

The company's performance was driven by higher average per-unit avocado sales prices, which increased 36% amid constrained supply conditions. The Marketing & Distribution segment showed particular strength, while the Blueberries segment saw a 62% revenue increase. Operating cash flow improved significantly, increasing by $64.2 million versus fiscal 2023 to $93.4 million.

For Q1 2025, AVO expects industry volumes to remain consistent with the prior year, with pricing approximately 20% higher than the $1.40 per pound average in Q1 2024.

Mission Produce (AVO) ha riportato risultati fiscali solidi per il quarto trimestre del 2024, con un aumento del fatturato totale del 37% a 354,4 milioni di dollari. L'utile netto ha raggiunto 17,3 milioni di dollari (0,24 dollari per azione diluita), in aumento rispetto ai 4,0 milioni di dollari dello stesso periodo dell'anno scorso. Per l'intero anno 2024, il fatturato è cresciuto del 29% a 1,23 miliardi di dollari.

Le performance dell'azienda sono state sostenute da un aumento del prezzo medio di vendita per unità di avocado, che è cresciuto del 36% a causa di condizioni di offerta limitata. Il segmento Marketing & Distribuzione ha mostrato una particolare solidità, mentre il segmento dei Mirtilli ha visto un aumento del fatturato del 62%. Il flusso di cassa operativo è migliorato significativamente, aumentando di 64,2 milioni di dollari rispetto all'anno fiscale 2023, assestandosi a 93,4 milioni di dollari.

Per il primo trimestre del 2025, AVO prevede che i volumi dell'industria rimarranno coerenti con l'anno precedente, con prezzi circa del 20% superiori alla media di 1,40 dollari per libbra del primo trimestre del 2024.

Mission Produce (AVO) informó resultados sólidos para el cuarto trimestre fiscal de 2024, con un aumento del 37% en los ingresos totales, alcanzando los 354,4 millones de dólares. El ingreso neto llegó a 17,3 millones de dólares (0,24 dólares por acción diluida), un incremento respecto a los 4,0 millones de dólares en el mismo período del año pasado. Para el año completo de 2024, los ingresos crecieron un 29% hasta 1,23 mil millones de dólares.

El rendimiento de la empresa se vio impulsado por los precios de venta promedio por unidad de aguacate, que aumentaron un 36% en medio de condiciones de suministro restringido. El segmento de Marketing y Distribución mostró una fortaleza particular, mientras que el segmento de Arándanos experimentó un aumento del 62% en los ingresos. El flujo de caja operativo mejoró significativamente, aumentando en 64,2 millones de dólares en comparación con el ejercicio fiscal 2023, llegando a 93,4 millones de dólares.

Para el primer trimestre de 2025, AVO espera que los volúmenes de la industria se mantengan consistentes con el año anterior, con precios aproximadamente un 20% más altos que el promedio de 1,40 dólares por libra del primer trimestre de 2024.

미션 프로듀스 (AVO)는 2024 회계연도 4분기 강력한 실적을 발표했으며, 총 매출이 37% 증가하여 3억 5440만 달러에 달했습니다. 순이익은 1730만 달러(희석주당 0.24달러)에 도달하여, 지난해 동일 기간의 400만 달러에서 증가했습니다. 2024년 전체 연도 동안 매출은 29% 증가하여 12억 3000만 달러가 되었습니다.

회사의 실적은 제한된 공급 상황 속에서 단위당 아보카도 판매 가격이 36% 상승한 것에 의해 촉진되었습니다. 마케팅 및 유통 부문은 특히 강한 모습을 보였고, 블루베리 부문은 62%의 매출 증가를 기록했습니다. 운영 현금 흐름은 상당히 개선되어, 2023 회계연도 대비 6420만 달러 증가한 9340만 달러에 도달했습니다.

2025년 1분기 동안 AVO는 업계 물량이 전년도와 유사하게 유지될 것으로 예상하며, 가격은 2024년 1분기의 파운드당 평균 1.40달러보다 약 20% 높은 수준을 예상하고 있습니다.

Mission Produce (AVO) a annoncé de solides résultats pour le quatrième trimestre fiscal 2024, avec une augmentation de 37 % de son chiffre d'affaires total, atteignant 354,4 millions de dollars. Le revenu net a atteint 17,3 millions de dollars (0,24 dollars par action diluée), en hausse par rapport à 4,0 millions de dollars au cours de la même période l'année précédente. Pour l'année entière 2024, le chiffre d'affaires a augmenté de 29 % pour atteindre 1,23 milliard de dollars.

La performance de l'entreprise a été soutenue par des prix de vente moyens par unité d'avocat plus élevés, qui ont augmenté de 36 % en raison de conditions d'approvisionnement limitées. Le segment Marketing et Distribution a montré une force particulière, tandis que le segment des Myrtilles a enregistré une augmentation des revenus de 62 %. Le flux de trésorerie d'exploitation a considérablement augmenté, passant de 64,2 millions de dollars par rapport à l'exercice 2023 pour atteindre 93,4 millions de dollars.

Pour le premier trimestre 2025, AVO s'attend à ce que les volumes de l'industrie restent cohérents par rapport à l'année précédente, les prix étant environ 20 % plus élevés que la moyenne de 1,40 $ par livre du premier trimestre 2024.

Mission Produce (AVO) berichtete über starke Ergebnisse im vierten Quartal des Geschäftsjahres 2024, wobei die Gesamteinnahmen um 37 % auf 354,4 Millionen USD stiegen. Der Nettogewinn erreichte 17,3 Millionen USD (0,24 USD pro verwässerter Aktie) und stieg im Vergleich zu 4,0 Millionen USD im gleichen Zeitraum des Vorjahres. Für das gesamte Jahr 2024 wuchsen die Einnahmen um 29 % auf 1,23 Milliarden USD.

Die Leistung des Unternehmens wurde durch höhere durchschnittliche Verkaufspreise pro Einheit für Avocados vorangetrieben, die aufgrund begrenzter Lieferbedingungen um 36 % anstiegen. Der Bereich Marketing und Vertrieb zeigte eine besondere Stärke, während der Bereich Blaubeeren eine Umsatzsteigerung von 62 % verzeichnete. Der operative Cashflow verbesserte sich erheblich und stieg um 64,2 Millionen USD im Vergleich zum Geschäftsjahr 2023 auf 93,4 Millionen USD.

Für das erste Quartal 2025 erwartet AVO, dass die Branchenvolumina konstant zum Vorjahr bleiben, wobei die Preise etwa 20 % höher sein werden als der Durchschnitt von 1,40 USD pro Pfund im ersten Quartal 2024.

Positive
  • Revenue increased 37% YoY to $354.4M in Q4 2024
  • Net income grew to $17.3M from $4.0M YoY in Q4
  • Adjusted EBITDA increased 113% to $36.9M in Q4
  • Operating cash flow improved by $64.2M to $93.4M for FY2024
  • Blueberries segment revenue increased 62% to $31.6M in Q4
Negative
  • Owned exportable avocado production volume decreased 60% to 43M pounds in 2024
  • Expected 30% lower blueberry pricing in Q1 2025 due to higher industry volumes
  • Higher SG&A expenses, up 32% to $27.2M in Q4

Insights

The Q4 2024 results showcase exceptional performance with revenue surging 37% to $354.4 million and net income quadrupling to $17.3 million. The most striking aspect is the 113% jump in Adjusted EBITDA to $36.9 million, primarily driven by strong per-unit margins in avocado distribution.

The company's strategic pivot to prioritize the North American market amid supply constraints proved highly effective. Despite weather-related challenges reducing owned production by 60%, Mission successfully leveraged its diverse sourcing network to maintain volume while benefiting from higher prices. The 36% increase in average per-unit avocado prices, combined with controlled costs, led to an impressive 490 basis point expansion in gross margin to 15.7%.

The $64.2 million improvement in operating cash flow to $93.4 million significantly strengthens the balance sheet position. This enhanced liquidity provides greater flexibility for strategic investments, particularly important given the planned $50-55 million capital expenditure for FY2025 focused on infrastructure development.

Mission Produce's diversification strategy into blueberries is showing promising results, with segment revenue increasing 62% to $31.6 million. The successful expansion of blueberry operations, driven by new plantings and yield improvements, demonstrates effective execution of the company's growth initiatives beyond its core avocado business.

The outlook for Q1 2025 indicates continued pricing strength in avocados, expected to be 20% higher year-over-year. However, the anticipated 30% decrease in blueberry prices due to higher industry volumes suggests a strategic need to focus on cost optimization and efficiency improvements to maintain profitability in this segment.

The company's robust performance in a challenging supply environment validates its business model's resilience and market leadership. The successful management of supply chain complexities and ability to maintain margins despite significant market fluctuations positions Mission Produce favorably for sustained growth in the expanding fresh produce market.

Strong top and bottom-line results driven by ongoing strength of the Marketing & Distribution segment

Operating cash flow for full year fiscal 2024 increased by $64.2 million versus fiscal 2023

OXNARD, Calif., Dec. 19, 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 fourth quarter ended October 31, 2024.

Fiscal Fourth Quarter 2024 Financial Overview:

  • Total revenue increased 37% to $354.4 million compared to the same period last year
  • Net income of $17.3 million, or $0.24 per diluted share, compared to $4.0 million, or $0.06 per diluted share, for the same period last year
  • Adjusted net income of $19.6 million, or $0.28 per diluted share, compared to $7.5 million, or $0.11 per diluted share, for the same period last year
  • Adjusted EBITDA increased 113% to $36.9 million, compared to $17.3 million in the same period last year

Full Year 2024 Financial Overview

  • Total revenue increased 29% to $1.23 billion compared to prior year, primarily driven by higher average per-unit avocado sales prices. Blueberries and mangos also contributed to growth as industry supply constraints supported a higher pricing environment
  • Net income of $36.7 million, or $0.52 per diluted share, compared to net loss of $(2.8) million or $(0.04) per diluted share in the prior year
  • Adjusted net income of $52.8 million, or $0.74 per diluted share, compared to $13.3 million, or $0.19 per diluted share last year
  • Adjusted EBITDA increased 123% to $107.8 million compared to $48.4 million in the prior year driven primarily by stronger per-unit gross profit performance from the Marketing & Distribution and Blueberries segments, the latter of which correlated directly to the higher pricing environment experienced during the fiscal year
  • Owned exportable avocado production volume decreased approximately 60% to 43 million pounds for the 2024 harvest season; volume was negatively impacted by weather-related events in the current year
  • Cash flow from operations was $93.4 million compared to $29.2 million in the prior year

CEO Message

“Mission delivered a strong fourth quarter that rounded out an exceptional full year fiscal 2024 performance where we realized $1.23 billion in revenue and generated $107.8 million in adjusted EBITDA, demonstrating the strength of our business model and industry leading positioning,” stated Steve Barnard, CEO of Mission. “As previously announced, our Marketing & Distribution segment drove the strong fourth quarter performance, successfully leveraging our global sourcing network amid a sustained higher pricing environment to achieve per-unit margins exceeding our targeted range. The positive impact of our fourth quarter performance combined with our solid operational execution across the fiscal year drove a $64.2 million increase in operating cash flow versus fiscal 2023, further strengthening our capital structure and enhancing our flexibility.”

Mr. Barnard continued, “Looking ahead to fiscal 2025, we will continue to focus on operational excellence, strategic growth initiatives, and sound capital allocation to drive shareholder value. While we anticipate some pricing moderation as additional supply sources become available, this environment typically supports increased consumption, and we remain well-positioned to capitalize on this growth through our unique capability to provide consistent year-round avocado supply. Beyond avocados, we are also excited about growing our mango program and expanding our presence in blueberries this year, both of which leverage our existing assets and capabilities while providing additional long-term growth opportunities.”

Fiscal Fourth Quarter 2024 Consolidated Financial Review

Total revenue for the fourth quarter of fiscal 2024 increased $96.5 million or 37% to $354.4 million compared to the same period last year. The increase was primarily driven by the Marketing & Distribution segment, where average per-unit avocado sales prices increased 36% on relatively flat avocado volume sold. These price and volume dynamics resulted from constrained avocado supply during the quarter due to weather impacts on fruit development and production in Peru. Despite lower Peruvian volumes, the Company effectively leveraged its diverse sourcing network across California, Colombia, and Mexico to drive a 9% increase in North American avocado sales volumes compared to the prior year. Mission’s strategic decision to prioritize the North American market, combined with strong consumer demand at higher price points and retail promotional activity contributed to the favorable pricing dynamics.

Gross profit increased $28.0 million in the fourth quarter of fiscal 2024 to $55.8 million, compared to the same period last year, and gross profit percentage increased 490 basis points, to 15.7% of revenue. The increases were primarily attributed to strong per-unit margins on avocados sold in the Marketing and Distribution segment. The Blueberries segment also contributed to the increase with higher volumes while per-unit margins remained generally consistent with the prior year.

Selling, general and administrative expense (“SG&A”) for the fourth quarter increased $6.6 million or 32% to $27.2 million, compared to the same period last year primarily due to higher employee related costs, including performance-based incentive compensation and stock-based compensation expense and statutory profit-sharing expense. Higher performance-based incentive compensation is largely explained by the Company’s improved operating performance for the fiscal year relative to the prior year.

Net income for the fourth quarter of fiscal 2024 was $17.3 million, or $0.24 per diluted share, compared to $4.0 million, or $0.06 per diluted share, for the same period last year.

Adjusted net income for the fourth quarter of fiscal 2024 was $19.6 million, or $0.28 per diluted share, compared to $7.5 million, or $0.11 per diluted share, for the same period last year.

Adjusted EBITDA was $36.9 million for the fourth quarter of fiscal 2024, an increase of $19.6 million or 113% as compared to $17.3 million in the prior year period, driven primarily by stronger per-unit gross profit performance from the Marketing & Distribution and Blueberries segments.

Fiscal Fourth Quarter Business Segment Performance

Marketing & Distribution

Net sales in the Marketing & Distribution segment increased 35% to $319.6 million for the fourth quarter, driven by avocado pricing increases as described previously.

Segment adjusted EBITDA increased $14.8 million or 137% to $25.6 million, primarily due to improved per-unit gross margin on avocados sold.

International Farming

Total sales in the International Farming segment for the fourth quarter were $30.3 million, compared to $40.3 million for the same period last year primarily due to lower volumes of owned avocados sold, stemming from unfavorably warm weather conditions in Peru during the early stages of fruit development, partially offset by higher average sales prices that were supported by constrained industry volumes.

Segment adjusted EBITDA was $2.7 million, compared to $1.1 million for the same period last year, as higher sales prices and cost savings measures more than offset the adverse impact of lower harvest yields on fixed cost absorption.

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.

Net sales in the Blueberries segment increased 62% to $31.6 million for the fourth quarter, compared to $19.5 million for the same period last year, driven by volume from new plantings and yield improvements. Yield growth was driven by improved weather patterns during the current harvest season in Peru, as cooler temperatures have been experienced since the end of El Niño conditions in May 2024.

Segment adjusted EBITDA increased 59% to $8.6 million for the fourth quarter, compared to $5.4 million for the same period last year, as a result of the growth in volumes.

Balance Sheet and Cash Flow

Cash and cash equivalents were $58.0 million as of October 31, 2024, compared to $42.9 million as of October 31, 2023.

Net cash provided by operating activities improved by $64.2 million to $93.4 million for the year ended October 31, 2024, as compared to $29.2 million last year. The growth in operating cash flow was primarily driven by improved operating performance during fiscal 2024. Further supporting the improvement in operating cash flow was favorable working capital management. While higher avocado pricing drove increases in inventory and accounts receivable, these increases were more than offset by higher grower payable balances, driven primarily by those same higher prices, and higher accounts payable and accrued expenses, the latter of which was significantly impacted by incentive compensation and statutory profit-sharing accruals in the current year. In addition, higher accounts payable and accrued expenses were attributed to the impact of higher volume and increased acreage within our Blueberries segment.

Capital expenditures were $32.2 million for the year ended October 31, 2024 compared to $49.8 million last year. Capital expenditures were comprised primarily of avocado orchard development, pre-production orchard maintenance and land improvements in Guatemala; pre-production avocado orchard maintenance, blueberry land development and plant cultivation, and blueberry cooling facility construction costs in Peru; and distribution facility construction costs in the United Kingdom. During 2024, the International Farming segment also began construction of a pack house in Guatemala.

Outlook

For the first quarter of fiscal year 2025, the Company is providing the following industry outlooks that will drive performance:

  • Industry volumes in the fiscal 2025 first quarter are expected to be consistent with the prior year period. While supply from Mexico has been constrained during the early part of the quarter due to fruit maturity and sizing, we expect industry volumes to ramp up as we move to the latter portion of quarter as we expect a larger Mexican harvest season.
  • Pricing is expected to be higher on a year-over-year basis by approximately 20% compared to the $1.40 per pound average experienced in the first quarter of fiscal 2024, indicative of continued strength in demand.
  • The blueberries harvest season in Peru will peak during the first quarter. The Company expects to see meaningful volume increases from owned farms resulting from yield improvements and new acreage in production, but the impact on revenue will likely be offset by lower average sales prices resulting from higher overall industry volumes from Peru. Pricing is expected to be approximately 30% lower compared to the first quarter of fiscal 2024, which will negatively impact segment adjusted EBITDA during the quarter as compared to the previous year when weather-related supply constraints led to abnormally high sales prices.
  • Capital expenditures were lower than expected for fiscal 2024 by approximately $10 million due to the timing of vendor payments associated with packhouse construction in Guatemala and blueberry plant development in Peru, both of which will carryover into fiscal 2025. For fiscal 2025, total capital expenditures inclusive of the 2024 carryover are expected to be between $50 to $55 million. The spend will be allocated primarily to the International Farming and Blueberries segments. Within the International Farming segment, spend will be concentrated in Guatemala for pre-production avocado orchard maintenance and packhouse construction. Within the Blueberries segment, spend will be concentrated on land development and plant cultivation in Peru.

Conference Call and Webcast

As previously announced, the Company will host a conference call to discuss its fourth quarter of fiscal 2024 financial results today at 5:00 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 January 2, 2025 by dialing (844) 512-2921 or for international callers by dialing (412) 317-6671; the passcode is 13750485.

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. Effective for the fourth quarter of 2024, the Company made a change in presentation of its reconciliation of adjusted EBITDA to its comparable GAAP financial measure to include a subtotal of the non-GAAP adjustments before the effect of the noncontrolling interest adjustment called “adjusted EBITDA before adjustment for noncontrolling interest.” The presentation change has no impact to total adjusted EBITDA. The Company believes the addition of the subtotal within the reconciliation is useful because it better aligns with management’s sequence of review of the information in the reconciliation.

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: reliance on primarily one main product; 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)October 31, 2024 October 31, 2023
Assets   
Current Assets   
Cash and cash equivalents$58.0 $42.9
Restricted cash 1.3  0.3
Accounts receivable   
Trade, net of allowances 95.4  74.1
Grower and fruit advances 1.7  0.9
Other 15.3  12.4
Inventory 91.2  70.8
Prepaid expenses and other current assets 9.4  9.1
Income taxes receivable 6.7  9.6
Total current assets 279.0  220.1
Property, plant and equipment, net 523.4  523.2
Operating lease right-of-use assets 67.8  72.4
Equity method investees 33.0  31.0
Deferred income tax assets, net 9.7  8.5
Goodwill 39.4  39.4
Intangible asset, net   0.5
Other assets 19.2  19.7
Total assets$971.5 $914.8
    
Liabilities and Equity   
Liabilities   
Accounts payable$35.3 $27.2
Accrued expenses 39.9  26.4
Income taxes payable 7.7  1.6
Grower payables 50.3  26.4
Short-term borrowings 3.0  2.8
Loans from noncontrolling interest holders—current portion 0.1  0.5
Notes payable 0.5  
Long-term debt—current portion 3.0  3.4
Operating leases—current portion 6.4  6.6
Finance leases—current portion 2.9  2.6
Total current liabilities 149.1  97.5
Long-term debt, net of current portion 110.7  148.6
Loans from noncontrolling interest holders, net of current portion 1.8  2.5
Operating leases, net of current portion 67.4  71.0
Finance leases, net of current portion 21.5  14.7
Income taxes payable 1.3  2.3
Deferred income tax liabilities, net 16.6  23.5
Other long-term liabilities 26.0  26.4
Total liabilities 394.4  386.5
Equity   
Mission Produce shareholders' equity 547.3  503.6
Noncontrolling interest 29.8  24.7
Total equity 577.1  528.3
Total liabilities and equity$971.5 $914.8


MISSION PRODUCE, INC. 
 
Condensed Consolidated Statements of Income (Loss) (Unaudited)
 
 Three Months Ended
October 31,
 Twelve Months Ended
October 31,
(In millions, except for share and per share amounts) 2024   2023   2024   2023 
Net sales$354.4  $257.9  $1,234.7  $953.9 
Cost of sales 298.6   230.1   1,082.2   870.6 
Gross profit 55.8   27.8   152.5   83.3 
Selling, general and administrative expenses 27.2   20.6   86.8   76.4 
Operating income 28.6   7.2   65.7   6.9 
Interest expense (2.7)  (3.3)  (12.6)  (11.6)
Equity method income 1.1   0.8   3.7   4.0 
Other income (expense), net 2.3   1.1   3.6   (0.2)
Income (loss) before income taxes 29.3   5.8   60.4   (0.9)
Provision (benefit) for income taxes 8.6   (0.2)  18.6   2.2 
Net income (loss)$20.7  $6.0  $41.8  $(3.1)
Less:
Net income (loss) attributable to noncontrolling interest
 3.4   2.0   5.1   (0.3)
Net income (loss) attributable to Mission Produce$17.3  $4.0  $36.7  $(2.8)
        
Net income (loss) per share attributable to Mission Produce:       
Basic$0.24  $0.06  $0.52  $(0.04)
Diluted$0.24  $0.06  $0.52  $(0.04)
        
Weighted average shares of common stock outstanding, used in computing diluted earnings per share 71,197,465   70,953,478   71,012,829   70,750,239 


MISSION PRODUCE, INC.
 
Condensed Consolidated Statements of Cash Flow (Unaudited)
 
 Years Ended
October 31,
(In millions) 2024   2023 
Operating Activities   
Net income (loss)$41.8  $(3.1)
Adjustments to reconcile net income (loss) to net cash provided by operating activities   
Provision for losses on accounts receivable    0.1 
Depreciation and amortization 37.7   32.8 
Amortization of debt issuance costs 0.2   0.2 
Equity method income (3.7)  (4.0)
Noncash lease expense 6.1   5.9 
Stock-based compensation 7.1   4.5 
Dividends received from equity method investees 3.2   2.7 
Losses on asset impairment, disposals and sales, net of insurance recoveries 3.9   1.3 
Deferred income taxes (8.0)  (6.4)
Unrealized (gains) losses on foreign currency transactions (1.7)  1.4 
Unrealized loss (gain) on derivative financial instruments 0.1   (0.1)
Other (0.4)  0.1 
Effect on cash of changes in operating assets and liabilities, net of acquisition:   
Trade accounts receivable (20.9)  (10.6)
Grower fruit advances (0.8)  0.9 
Other receivables (3.2)  5.0 
Inventory (19.3)  3.0 
Prepaid expenses and other current assets (0.2)  2.0 
Income taxes receivable 2.9   (1.6)
Other assets 1.6   1.0 
Accounts payable and accrued expenses 25.4   (8.9)
Income taxes payable 5.1   (0.2)
Grower payables 23.5   2.2 
Operating lease liabilities (5.3)  (3.8)
Other long-term liabilities (1.7)  4.8 
Net cash provided by operating activities$93.4  $29.2 
Investing Activities   
Purchases of property, plant and equipment (32.2)  (49.8)
Proceeds from sale of property, plant and equipment 0.1   0.2 
Investment in equity method investees (1.6)  (2.1)
Purchase of other investment    (2.3)
Other 0.2   (0.1)
Net cash used in investing activities$(33.5) $(54.1)
Financing Activities   
Borrowings on revolving credit facility 40.0   145.0 
Payments on revolving credit facility (75.0)  (130.0)
Proceeds from short-term borrowings 3.0   2.8 
Repayment of short-term borrowings (2.8)  (2.5)
Principal payments on long-term debt obligations (3.4)  (3.5)
Principal payments on finance lease obligations (1.8)  (2.6)
Proceeds from loan from noncontrolling interest holder    2.0 
Principal payments on loans due to noncontrolling interest holder (0.5)   
Payments to noncontrolling interest holder for long-term supply financing (2.0)   
Payments for long-term supplier financing (0.5)  (0.1)
Purchase and retirement of common stock    (0.6)
Taxes paid related to shares withheld from the settlement of equity awards (0.8)  (0.5)
Exercise of stock options    0.1 
Equity contributions from noncontrolling interest holders    4.2 
Net cash (used in) provided by financing activities$(43.8) $14.3 
Effect of exchange rate changes on cash    (0.1)
Net increase (decrease) in cash, cash equivalents and restricted cash 16.1   (10.7)
Cash, cash equivalents and restricted cash, beginning of period 43.2   53.9 
Cash, cash equivalents and restricted cash, end of period$59.3  $43.2 
    
Summary of cash, cash equivalents and restricted cash reported within the consolidated balance sheets:   
Cash and cash equivalents$58.0  $42.9 
Restricted cash 1.3   0.3 
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$59.3  $43.2 


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

 Three Months Ended
October 31,
 Twelve Months Ended
October 31,
(In millions, except for per share amounts) 2024   2023   2024   2023 
Net income (loss) attributable to Mission Produce$17.3  $4.0  $36.7  $(2.8)
Stock-based compensation 2.6   1.3   7.1   4.5 
Unrealized loss on derivative financial instruments 0.1   0.7   0.6   2.3 
Foreign currency transaction (gain) loss (1.7)  (0.8)  (1.6)  1.8 
Losses on asset impairment, disposals and sales, net of 0.1   0.1   3.9   1.3 
Farming costs for nonproductive orchards(1) 0.7   1.0   4.2   3.8 
Recognition of deferred ERP costs 0.6   0.5   2.2   2.2 
Depreciation-blueberries(2)       4.1    
Severance    1.3   1.3   1.3 
Legal settlement       0.2    
Amortization of intangible asset recognized from business combination    0.3   0.5   1.5 
Transaction costs          0.3 
Amortization of inventory adjustment recognized from business combination          0.7 
Tax effects of adjustments to net income (loss) attributable to Mission Produce(3) (0.1)  (0.7)  (4.2)  (4.1)
Nonrecurring discrete tax charge          1.8 
Noncontrolling interest(4)    (0.2)  (2.2)  (1.3)
Mission Produce adjusted net income$19.6  $7.5  $52.8  $13.3 
Mission Produce adjusted net income per diluted share$0.28  $0.11  $0.74  $0.19 

(1)  During the three months ended October 31, 2024, $0.3 million related to blueberry orchards and $0.4 million related to avocado orchards. During the twelve months ended October 31, 2024, $2.5 million related to the blueberry orchards and $1.7 million related to avocado orchards. During the three months ended October 31, 2023, $0.5 million related to the development of blueberry orchards and $0.5 million related to avocado orchards. During the twelve months ended October 31, 2023, $2.0 million related to the development of blueberry orchards and $1.8 million related to avocado orchards.
(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.

Adjusted EBITDA

 Three Months Ended
October 31,
 Twelve Months Ended
October 31,
(In millions) 2024   2023   2024   2023 
Marketing & Distribution adjusted EBITDA$25.6  $10.8  $85.1  $40.1 
International Farming adjusted EBITDA 2.7   1.1   4.6   3.1 
Blueberries adjusted EBITDA 8.6   5.4   18.1   5.2 
Total reportable segment adjusted EBITDA$36.9  $17.3  $107.8  $48.4 
Net income (loss) 20.7   6.0   41.8   (3.1)
Interest expense(1) 2.7   3.3   12.6   11.6 
Provision (benefit) for income taxes 8.6   (0.2)  18.6   2.2 
Depreciation and amortization(2) 10.2   10.0   37.7   32.8 
Equity method income (1.1)  (0.8)  (3.7)  (4.0)
Stock-based compensation 2.6   1.3   7.1   4.5 
Losses on asset impairment, disposals and sales, net of insurance recoveries 0.1   0.1   3.9   1.3 
Farming costs for nonproductive orchards 0.4   0.5   1.7   1.8 
Recognition of deferred ERP costs 0.6   0.5   2.2   2.2 
Severance    1.3   1.3   1.3 
Legal settlement       0.2    
Transaction costs          0.3 
Amortization of inventory adjustment recognized from business combination          0.7 
Other (income) expense, net (2.3)  (1.1)  (3.6)  0.2 
Adjusted EBITDA before adjustment for noncontrolling interest$42.5  $20.9  $119.8  $51.8 
Noncontrolling interest(3) (5.6)  (3.6)  (12.0)  (3.4)
Total adjusted EBITDA$36.9  $17.3  $107.8  $48.4 

(1)  Includes interest expense from finance leases, the most significant of which is for nonproductive land at our Blueberries segment of $0.3 million and $0.4 million for the three months ended October 31, 2024 and 2023, respectively, and $1.8 million and $1.4 million for the twelve months ended October 31, 2024 and 2023, respectively.
(2)  Includes depreciation and amortization of purchase accounting assets of $0.2 million and $0.6 million for the three months ended October 31, 2024 and 2023, respectively, and $3.7 million and $2.4 million for the twelve months ended October 31, 2024 and 2023, respectively. Includes amortization of finance leases, the most significant of which is for nonproductive land at our Blueberries segment of less than a million and $0.1 million for the three months ended October 31, 2024 and 2023, respectively, and $0.7 million and $0.6 million for the twelve months ended October 31, 2024 and 2023, respectively. The twelve months ended October 31, 2024 include $4.1 million of accelerated depreciation expense recognized during the first quarter of 2024, for certain blueberry plants determined to have no remaining useful life.
(3)  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 & Distribution International Farming Blueberries Total Marketing & Distribution International Farming Blueberries Total
 Three Months Ended
October 31,
(In millions) 2024   2023 
Third party sales$319.6 $3.2  $31.6 $354.4  $236.2 $2.2  $19.5 $257.9 
Affiliated sales   27.1     27.1     38.1     38.1 
Total segment sales 319.6  30.3   31.6  381.5   236.2  40.3   19.5  296.0 
Intercompany eliminations   (27.1)    (27.1)    (38.1)    (38.1)
Total net sales$319.6 $3.2  $31.6 $354.4  $236.2 $2.2  $19.5 $257.9 
 Twelve Months Ended
October 31,
  2024   2023 
Third party sales$1,152.6 $6.4  $75.7 $1,234.7  $889.9 $11.6  $52.4 $953.9 
Affiliated sales   58.5     58.5     78.6     78.6 
Total segment sales 1,152.6  64.9   75.7  1,293.2   889.9  90.2   52.4  1,032.5 
Intercompany eliminations   (58.5)    (58.5)    (78.6)    (78.6)
Total net sales$1,152.6 $6.4  $75.7 $1,234.7  $889.9 $11.6  $52.4 $953.9 
                            

Avocado Sales

 Three Months Ended
October 31,
 Twelve Months Ended
October 31,
  2024  2023  2024  2023
Pounds of avocados sold(millions) 161.1  162.4  647.3  654.4
Average sales price per pound$1.90 $1.39 $1.69 $1.30
 

Sales by Type

 Three Months Ended
October 31,
 Twelve Months Ended
October 31,
(In millions) 2024  2023  2024  2023
Avocado$305.5 $225.0 $1,092.2 $851.1
Other 48.9  32.9  142.5  102.8
Total net sales$354.4 $257.9 $1,234.7 $953.9

FAQ

What was Mission Produce's (AVO) revenue growth in Q4 2024?

Mission Produce's revenue grew 37% to $354.4 million in Q4 2024 compared to the same period last year.

How much did AVO's avocado prices increase in Q4 2024?

Average per-unit avocado sales prices increased 36% in Q4 2024 compared to the same period last year.

What is Mission Produce's (AVO) guidance for Q1 2025 avocado pricing?

AVO expects pricing to be approximately 20% higher compared to the $1.40 per pound average in Q1 2024.

How much operating cash flow did AVO generate in fiscal 2024?

Mission Produce generated $93.4 million in operating cash flow for fiscal 2024, an increase of $64.2 million from fiscal 2023.

What was AVO's blueberry segment performance in Q4 2024?

The Blueberries segment revenue increased 62% to $31.6 million in Q4 2024, with adjusted EBITDA growing 59% to $8.6 million.

Mission Produce, Inc.

NASDAQ:AVO

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1.06B
44.63M
37.15%
31.36%
1.78%
Food Distribution
Consumer Defensive
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United States of America
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