Mission Produce, Inc. Q4 FY2024 earnings call

• Strong fiscal 2024 with $1.2 billion in revenue and $107.8 million in adjusted EBITDA. • Leveraged global sourcing network to capitalize on favorable market conditions despite Peru supply constraints. • Generated $64.2 million increase in operating cash flow for fiscal 2024. • Blueberry segment had strong fourth quarter with resilient pricing despite later moderation. • Guatemala avocado imports approved by USDA, a milestone for expansion. • Winding down Toronto and Calgary facilities to optimize distribution and eliminate redundant costs.

Marketing and Distribution segment net sales increased 35% to $319.6 million for the quarter, with segment adjusted EBITDA reaching $25.6 million. International Farming segment had total sales of $30.3 million and adjusted EBITDA of $2.7 million. Blueberry segment net sales were $31.6 million, and adjusted EBITDA increased to $8.6 million. Overall, Marketing and Distribution was a highlight, while International Farming faced weather challenges but improved adjusted EBITDA, and Blueberries had strong fourth quarter with resilient pricing.

• Avocados: Fiscal 2025 first quarter industry volumes expected consistent with prior year, pricing up ~20% year-over-year, with per unit margins reverting to historical targeted ranges from elevated levels. • Blueberries: First quarter volume increase from owned farms but lower average sales prices due to higher industry volumes, negatively impacting segment adjusted EBITDA compared to prior year.

• Potential tariffs on agricultural exports from Mexico could raise costs and impact consumption. • Weather conditions, such as El Nino, can affect farming operations and volumes. • Market volatility impacting pricing and overall supply chain dynamics.

Q: Result in the quarter relative to the pre-release information?

A: Bryan Giles states the delta was due to better than expected blueberry pricing and volumes, with not all data closed out initially.

Q: Costs associated with winding down Toronto and Calgary facilities?

A: Steve Barnard says the facilities weren't profitable, and Bryan Giles mentions minimal cash and non-cash costs as leases were near expiration and few employees were involved.

Q: International Farming segment outlook?

A: Bryan Giles and Stephen Barnard discuss improvement expected with stabilizing weather, higher volumes, and the segment moving back to prior strong EBITDA levels.

Q: Tariffs on agricultural exports?

A: Stephen Barnard and John Pawlowski discuss potential impact but confidence in the supply chain's ability to execute through disruptions.

Q: Blueberries planting and future plan?

A: Bryan Giles talks about new plantings, including 100+ hectares, and plans to stretch the harvest season with premium varieties.

Q: Balance sheet and future plans?

A: Bryan Giles mentions priority on debt paydown and potential shareholder returns once balance sheet is in good shape.