Good start to 2024 for Mission Produce

Mission Produce has reported on a “strong” set of results for the first quarter (Q1) of the fiscal year, noting an improved performance across all of its segments.

Total revenue increased 21 per cent to US$258.7m when compared with the same period last year, driven primarily by a 23 per cent increase in average per-unit avocado selling prices on flat avocado volumes.

Net income was breakeven, an improvement on the loss of US$8.8m in Q1 2023, while adjusted net income climbed to US$6.7m from a loss of US$5m.

Adjusted EBITDA stood at US$19.2m, rising from US$2.3m in 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,” said CEO Steve Barnard.

”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,” he continued.

”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 outlined.

”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 optimise our business and enhance profitability, and it is expected to result in a meaningful step-up in free cash flow generation in 2024,” he added.

Click here for a full breakdown of Mission Produce’s first-quarter results