Mission Produce Inc Reports Third Quarter Fiscal 2024 Financial Results
Intellectia.AI2024-09-10
Mission Produce, Inc. Reports Third Quarter Fiscal 2024 Financial Results
Mission Produce, Inc. (NASDAQ: AVO), a leader in avocados and other fresh produce, released its financial results for the fiscal third quarter ending July 31, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $324.0 million | $261.4 million | +24% |
| Net Income | $12.4 million | $6.6 million | +87.9% |
| Earnings per Share (EPS) | $0.17 | $0.09 | +88.9% |
| Adjusted Net Income | $16.7 million | $10.3 million | +62.1% |
| Adjusted EPS | $0.23 | $0.15 | +53.3% |
| Adjusted EBITDA | $31.5 million | $21.2 million | +49% |
Performance Interpretation : Mission Produce demonstrated robust financial performance in Q3 2024 with significant revenue and income growth driven by higher prices in the Marketing & Distribution segment, which successfully offset lower avocado volumes. The company's strategic focus and capital management contributed to notable growth in adjusted EBITDA.
Segment Revenue Performance
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change |
|---|---|---|---|
| Marketing & Distribution | $321.3 million | $257.0 million | +25% |
| International Farming | $27.4 million | $38.2 million | -28.3% |
| Blueberries | $1.6 million | $1.4 million | +14.3% |
Segment Performance Interpretation : The Marketing & Distribution segment continued its strong performance with a notable increase in revenue due to price hikes, demonstrating the company’s ability to capture higher market prices. Conversely, the International Farming segment faced challenges due to lower harvest yields in Peru, impacted by El Niño conditions.
Key Developments and Operational Highlights
- Operating cash flow for the first nine months of fiscal 2024 increased by $62.7 million compared to the prior year period.
- Affected by reduced avocado supply due to weather disruptions and production challenges in Peru and Mexico.
Executive Comments
Steve Barnard, CEO of Mission Produce, emphasized the company's strong third-quarter performance, driven by efficient global sourcing and leveraging favorable market conditions. Barnard acknowledged challenges in farming operations in Peru while maintaining robust margins and improved operating cash flows.
Forward Guidance
Mission Produce highlighted industry expectations for Q4 2024, projecting flat to slightly lower industry volumes and a transition to a Mexico-centric source model. Pricing is expected to decrease sequentially but remain higher than the previous year. Blueberry volume from owned farms is expected to increase, with capital expenditures remaining in the $40 to $45 million range for fiscal 2024.
Stock Price Movement
The company’s stock experienced a slight decline of -0.37% following the earnings release.
Note : The report does not include information on dividends or a share repurchase program, as there were no announcements regarding these in the earnings release.
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