OXNARD, CA - As we prepare for the arrival of 2024, Mission Produce™ has shared a key company update in the form of its financial results for the fiscal fourth quarter that ended October 31, 2023. Among the highlights of the report is a total revenue increase of 8 percent to $257.9 million for the period.
“Our fourth quarter results saw improved top and bottom-line performance driven by strength in our Marketing and Distribution segment, further supported by substantial growth in our emerging Blueberries segment. However, continued weather-related challenges in Peru resulted in quality issues toward the latter end of the season and lower than expected volumes, both of which impacted our International Farming segment performance,” Steve Barnard, Chief Executive Officer, commented. “Because we set our fixed price contracts with customers and market allocation prior to experiencing these weather-related events, we were limited in our ability to generate the seasonal increase in adjusted EBITDA that we would typically expect in the fourth quarter.”
For Mission, this total revenue bump was driven by an 8 percent increase in average per-unit avocado selling prices, a release stated. In addition to the rise in total revenue, other highlights for the fourth quarter include:
- Net income of $4 million, or $0.06 per diluted share, compared to a net loss of $42 million, or $0.59 per diluted share, for the same period last year
- Adjusted EBITDA of $17.3 million, compared to $17.2 million in the period year period
Looking at the full year 2023 financial results, some of the notable points include:
- Total avocado volume sold increased by 12 percent to 654.4 million pounds
- Adjusted EBITDA increased 2 percent to $48.4 million compared to $47.6 million last year
With the future in mind, Barnard shared what is to be expected from Mission in the year ahead.
“Looking ahead to 2024, we expect to realize improved pricing in our International Farming segment given adjustments we’ve made to our marketing strategy following this past year’s experience, which we believe will create a more constructive backdrop for our International Farming segment performance next year," he continued. "In the meantime, we remain intensely focused on advancing cost control measures and reallocating resources to maximize efficiency."
Steve added one last comment about other elements of the business.
“We believe that with anticipated improvements in operating cash flow and declining capital expenditure needs, we are in a great position to enhance our capital structure in the year ahead," he noted. "We continue to focus our organization’s efforts on supporting long-term consumption growth trends globally and providing the market with a consistent year-round supply of avocados on a global scale—a capability that is unique to Mission Produce. We are also excited about accelerating and advancing our burgeoning mango program and seeing the continued success of our blueberries segment.”
To read the release in its entirety, click here.
To see what is in store for Mission in 2024, stay tuned to AndNowUKnow.
