On December 19, 2024, Mission Produce Inc (AVO, Financial) released its 8-K filing detailing its fiscal fourth quarter and full-year 2024 financial results. Mission Produce Inc, a leader in the production and distribution of avocados, also offers services such as ripening, bagging, and logistical management. The company operates through segments including Marketing and Distribution, International Farming, and Blueberries, with the Marketing and Distribution segment generating the majority of its revenue.
Q4 Financial Highlights
Mission Produce Inc reported a 37% increase in total revenue for the fourth quarter, reaching $354.4 million, significantly surpassing the analyst estimate of $220.40 million. The net income for the quarter was $17.3 million, or $0.24 per diluted share, exceeding the estimated earnings per share of -$0.02. Adjusted net income rose to $19.6 million, or $0.28 per diluted share, compared to $7.5 million, or $0.11 per diluted share, in the same period last year. Adjusted EBITDA saw a remarkable 113% increase to $36.9 million.
Full-Year 2024 Performance
For the full year, Mission Produce Inc achieved a 29% increase in total revenue, amounting to $1.23 billion, driven by higher average per-unit avocado sales prices and contributions from blueberries and mangos. The company reported a net income of $36.7 million, or $0.52 per diluted share, a significant turnaround from a net loss of $(2.8) million, or $(0.04) per diluted share, in the previous year. Adjusted EBITDA for the year increased by 123% to $107.8 million.
Segment Performance and Strategic Insights
The Marketing & Distribution segment was a key driver of growth, with net sales increasing by 35% to $319.6 million in Q4, primarily due to higher avocado pricing. The segment's adjusted EBITDA surged by 137% to $25.6 million. The International Farming segment faced challenges with a decrease in sales to $30.3 million due to lower avocado volumes caused by adverse weather conditions in Peru. However, the segment's adjusted EBITDA improved to $2.7 million due to higher sales prices and cost-saving measures.
The Blueberries segment experienced a 62% increase in net sales to $31.6 million, driven by volume growth from new plantings and yield improvements. The segment's adjusted EBITDA increased by 59% to $8.6 million.
Financial Position and Cash Flow
Mission Produce Inc's cash and cash equivalents increased to $58.0 million as of October 31, 2024, from $42.9 million a year earlier. Operating cash flow improved significantly, rising by $64.2 million to $93.4 million for the year, supported by enhanced operating performance and favorable working capital management. Capital expenditures were $32.2 million, primarily for avocado orchard development and infrastructure improvements in Guatemala and Peru.
CEO Commentary
“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 EBITDA, demonstrating the strength of our business model and industry leading positioning,” stated Steve Barnard, CEO of Mission.
Conclusion
Mission Produce Inc's strong financial performance in fiscal 2024, particularly in the fourth quarter, highlights the effectiveness of its strategic focus on the Marketing & Distribution segment and its ability to leverage global sourcing networks. The company's robust revenue growth and improved profitability underscore its resilience in navigating industry challenges, positioning it well for future growth opportunities in avocados, mangos, and blueberries.
Explore the complete 8-K earnings release (here) from Mission Produce Inc for further details.
