OXNARD, CA - With additional offerings of blueberries and mangos in its arsenal, Mission Produce™ delivered financial results for the fiscal second quarter.
“Revenue growth was driven by robust consumer demand for avocados which translated into an 8 percent increase in avocado volumes sold in our Marketing and Distribution segment and a 22 percent increase in per-unit sales prices,” commented Steve Barnard, Chief Executive Officer. “Results were also supported by our emerging Blueberries segment, where volumes benefited from the harvest season timing that extended into the fiscal second quarter this year. Strong per-unit margins related to avocados in our Marketing & Distribution segment, combined with an overall reduction in corporate expenses and continued implementation of cost savings actions, contributed meaningfully to our improved adjusted EBITDA and cash flow generation.”
Some highlights from the report include:
- Total revenue increased 35 percent to $297.6 million compared to the same period last year driven primarily by a 22 percent increase in average per-unit avocado selling prices and an 8 percent increase in avocado volume sold
- Net income of $7 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
“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 $10 million of annualized cost savings in Fiscal 2024,” Barnard continued. “We expect these cost optimization initiatives 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 and we expect 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.”
For more highlights from the release, click here.
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