Mission Produce has reported a 21% increase in revenue for its first quarter 2024 financial results.
The Oxnard, Calif.-based company said in a news release that results for the quarter ending Jan. 31 included:
- Total revenue increased 21% to $258.7 million compared to the same period last year, driven primarily by a 23% increase in average per-unit avocado selling prices on flat avocado volumes.
- Net income/loss was breakeven compared with a loss of $8.8 million for the same period last year.
- Adjusted net income of $6.7 million, compared with a loss of $5 million for the same period last year.
“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,” Mission Produce CEO Steve Barnard said in the release. “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,” Barnard continued. “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.”
The release said total revenue for the first quarter of fiscal 2024 increased $45.2 million compared to the same period last year.
Though less significant, Mission Produce also experienced growth in mango and blueberry revenues resulting from higher average sales prices that were driven by industry supply constraints during the period, according to the release.
Net sales in the marketing and distribution segment increased 24% to $224.6 million for the quarter, due to a 23% increase in average per-unit avocado sales prices; volume was flat year-over-year, according to the release.
Sales in the blueberries segment have 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, the release said.
Net sales in the blueberries segment increased 9% to $32.5 million, the release said, primarily due to a 90% increase in average per-unit sales price, substantially offset by a 43% decrease in volume sold, both of which were driven by significant reductions in industry blueberry supply from Peru during the 2023-24 harvest season resulting from regional weather conditions.
