Mission Produce reports 37% revenue growth in recent quarter

Mission Produce Inc. reported a 37% increase in its financial results for the fiscal fourth quarter ended Oct. 31.

Total revenue for the quarter reached $354.4 million, up 37% compared with the same quarter a year ago, according to a news release.

Net income of $17.3 million was up compared to $4 million for the same period last year, and adjusted net income of $19.6 million compared to $7.5 million for the same period last year, the release said.

For the fiscal year ended Oct. 31, Mission Produced reported total revenue increased 29% to $1.23 billion compared to the prior year, primarily driven by higher average per-unit avocado sales prices. Blueberries and mangoes also contributed to growth as industry supply constraints supported a higher pricing environment, the release said.

Owned exportable avocado production volume decreased by approximately 60% to 43 million pounds for the 2024 harvest season; volume was negatively impacted by weather-related events in the current year, the release said. Cash flow from operations was $93.4 million compared to $29.2 million in the prior year.

“Mission delivered a strong fourth quarter that rounded out an exceptional full year fiscal 2024 performance where we realized $1.23 billion in revenue and generated $107.8 million in adjusted [earnings before interest, taxes, depreciation and amortization], demonstrating the strength of our business model and industry-leading positioning,” Mission Produce CEO Steve Barnard said in the release. “As previously announced, our marketing and distribution segment drove the strong fourth quarter performance, successfully leveraging our global sourcing network amid a sustained higher pricing environment to achieve per-unit margins exceeding our targeted range. The positive impact of our fourth quarter performance combined with our solid operational execution across the fiscal year drove a $64.2 million increase in operating cash flow versus fiscal 2023, further strengthening our capital structure and enhancing our flexibility.”

Looking ahead to fiscal 2025, Barnard said Mission Produce will continue to focus on operational excellence, strategic growth initiatives and sound capital allocation to drive shareholder value.

“While we anticipate some pricing moderation as additional supply sources become available, this environment typically supports increased consumption, and we remain well-positioned to capitalize on this growth through our unique capability to provide consistent year-round avocado supply,” he said. “Beyond avocados, we are also excited about growing our mango program and expanding our presence in blueberries this year, both of which leverage our existing assets and capabilities while providing additional long-term growth opportunities.”

Despite lower Peruvian avocado volumes in the fourth quarter, Mission Produce said it leveraged its diverse sourcing network across California, Colombia and Mexico to drive a 9% increase in North American avocado sales volumes compared to the prior year.

Mission Produce said industry volumes in the fiscal 2025 first quarter are expected to be consistent with the prior year period.

While avocado supply from Mexico has been constrained during the early part of the quarter beginning Nov. 1 due to fruit maturity and sizing, the company expects industry volumes to ramp up toward the latter portion of the quarter in response to a larger Mexican harvest season.

Pricing is expected to be higher on a year-over-year basis by approximately 20% compared to the $1.40 per pound average experienced in the first quarter of fiscal 2024, indicative of continued strength in demand, the release said.

The blueberry harvest season in Peru will peak during the fiscal first quarter, the release said. Mission Produce expects to see meaningful volume increases from owned farms resulting from yield improvements and new acreage in production, but the impact on revenue will likely be offset by lower average sales prices resulting from higher overall industry volumes from Peru, the release said. Pricing is expected to be approximately 30% lower compared to the first quarter of fiscal 2024, when abnormal weather limited supply, the release said.

Within the international farming segment, investments by the company will be concentrated in Guatemala for pre-production avocado orchard maintenance and packhouse construction. For the blueberries segment, spending will be concentrated on land development and plant cultivation in Peru, the company said.