Oxnard, Calif.-based Mission Produce Inc. reported that its total revenue for the quarter ending July 31 totaled $324 million, up 24% from the same period last year.
The company reported net income of $12.4 million for its third fiscal quarter, up nearly double from $6.6 million for the same period last year, according to a news release.
“We are pleased to report another quarter of strong financial performance, marked by robust third quarter revenues of $324 million, an increase of 24% year-over-year and a 49% increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to $31.5 million,” Mission Produce CEO Steve Barnard said in the release. “Our team’s ability to leverage our global sourcing network to meet customer demand amid a more challenging production year for our farming operations in Peru was commendable. The result of this focus was an achievement of per-unit margins that exceeded our targeted range, which is a testament to our team’s exceptional execution and ability to capitalize on favorable market conditions.
“These efforts are a continuation of our strong performance this year and combined with our solid working capital management, they have translated into a $62.7 million improvement in our year-to-date operating cash flow performance versus the prior year period,” Barnard continued. “Looking ahead, we remain excited about our position and will continue to focus on operational excellence, strategic growth initiatives, and sound capital allocation to drive long-term shareholder value.”
The company reported average per-unit avocado sales prices increased 36%, which more than offset a 10% decrease in avocado volume sold.
Lower avocado volume resulted from lower avocado supply available during the quarter due to a combination of weather impacts on fruit development and production in Peru and fruit harvesting disruptions in Mexico, the release said. Despite overall volume reductions, domestic sales volumes were relatively flat during the quarter, demonstrating the resiliency of demand for avocados amid higher price points in the U.S. market.
Mission Produce said 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, which typically runs from July through February.
The company reported net sales in the blueberries segment were $1.6 million for the quarter of fiscal 2024 compared to $1.4 million for the same period last year
For the fourth quarter of fiscal year 2024, Mission Produce said industry avocado volumes are expected to be flat to slightly lower in the fiscal 2024 fourth quarter versus the prior-year period.
The California and Peru harvest seasons will conclude in the fourth quarter, and the company will transition to a Mexico-centric source model during the latter part of the quarter, the release said. Sales of exportable avocado production from Mission Produce’s owned farms is expected to be slightly below the fiscal third quarter 2024 volume of approximately 25 million pounds, the release said.
Pricing is expected to decrease on a sequential basis but remain approximately 15% higher than the $1.39 per pound average experienced in fourth quarter of fiscal 2023.
The blueberry harvest season in Peru will begin to ramp up during the fourth quarter, the release said. The company said it expects to see meaningful volume increases from its owned farms, but the impact on revenue will likely be offset by lower average sales prices. The lower prices are expected to impact segment adjusted EBITDA during the quarter, as compared to the previous year when supply constraints led to abnormally high sales prices, the release said.
