“Robust” revenue growth and higher quarterly earnings are the order of the day for Mission Produce in the third quarter
Mission Produce has revealed that total revenue climbed 24 per cent year-on-year during the fiscal third quarter (Q3) of 2024, up to US$324m.
The increase in revenue was primarily driven by its marketing and distribution segment, Mission said, where average per-unit avocado sales prices increased 36 per cent, which more than offset a 10 per cent decrease in avocado volume sold.
These price and volume dynamics 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, it explained.
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 US market”.
Revenue growth was part of a strong set of wider quarterly results that also saw net income rise from US$6.6m to US$12.4m, and adjusted net income jump to US$16.7m from US$10.3m in 2023.
“We are pleased to report another quarter of strong financial performance, marked by robust third quarter revenues of US$324m, an increase of 24 per cent year-over-year and a 49 per cent increase in adjusted EBITDA to US$31.5m,” stated Steve Barnard, CEO of Mission.
“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 capitalise on favourable market conditions,” he continued.
”These efforts are a continuation of our strong performance this year and combined with our solid working capital management, they have translated into a US$62.7m improvement in our year-to-date operating cash flow performance versus the prior year period.
“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,” Barnard added.
