OXNARD, CA - Mission Produce is seeing a promising beginning after recently reporting its most recent financial results. With the addition of mangos and blueberries to its offerings, the company continues to build on its central Hass avocado business.
“We are off to a strong start in fiscal 2024 with the delivery of a first quarter that demonstrated solid execution across all facets of our business. The team’s focus resulted in significantly improved per-unit margins, which translated to nearly 700 basis points of gross margin expansion and resulted in a significant improvement in adjusted EBITDA performance year-over-year,” remarks Steve Barnard, Chief Executive Officer.
One of the highlights of the report is Mission’s total revenue for the first quarter of fiscal 2024 increased by $45.2 million. This is a 21 percent increase compared to the same period last year and is driven primarily by higher average per-unit avocado sales prices, a release explained.
The company also reported growth in mango and blueberry revenues resulting from higher average sales prices driven by industry supply constraints during the period.
According to a press release, an overview of the fiscal first quarter 2024 also includes the following:
- Total revenue increased 21 percent to $258.7 million compared to the same period last year driven primarily by a 23 percent increase in average per-unit avocado selling prices on flat avocado volumes
- Net income/(loss) was breakeven, or $0.00 per diluted share, compared to $(8.8) million, or $(0.12) per diluted share, for the same period last year
- Adjusted net income of $6.7 million, or $0.09 per diluted share, compared to $(5.0) million, or $(0.07) per diluted share, for the same period last year
- Adjusted EBITDA of $19.2 million, compared to $2.3 million in the same period last year
Barnard went on to say, “Our margin improvement was spurred by strength in avocado margins in our marketing and distribution segment, as well as the achievement of record quarterly revenues in our blueberries segment due to advantageous pricing conditions, which contributed meaningfully to our overall adjusted EBITDA generation. In our international farming segment, our team has been focused on implementing cost savings measures across our farming and packing operations. We expect to see the benefits of these initiatives in the second half of our fiscal year when we harvest and sell our owned avocado production from Peru. Our improved overall performance is a direct result of the actions we are taking to optimize our business and enhance profitability, and it is expected to result in a meaningful step-up in free cash flow generation in 2024.”
We’ll continue to keep an eye on the fresh produce sector, so stay tuned to ANUK.
