Mission Produce (AVO) Q3 2024 earnings summary

Executive summary

• Revenue grew 24% year-over-year to $324 million in Q3 2024, driven by higher avocado prices despite a 10% decline in volume.

• Adjusted EBITDA increased 49% to $31.5 million, reflecting robust per-unit avocado margins and strong Marketing & Distribution performance.

• Net income more than doubled to $12.4 million ($0.17 per diluted share) from $6.6 million ($0.09 per share) in the prior year quarter.

• Operating cash flow for the first nine months improved by $62.7 million year-over-year, reaching $55.4 million, driven by solid execution and working capital management.

• U.K. facility reached profitability for the first time since opening, reflecting successful market adaptation.

Financial highlights

• Gross profit increased by $8.6 million to $37 million, with gross margin up 50 bps to 11.4%.

• Adjusted net income for Q3 was $16.7 million ($0.23/share), up from $10.3 million ($0.15/share) last year.

• Cash and equivalents at $49.5 million as of July 31, 2024, up from $42.9 million at prior fiscal year-end.

• Free cash flow of nearly $30 million generated in the first nine months of fiscal 2024.

• Net income for the nine-month period was $19.4 million, compared to a net loss of $6.8 million last year.

Outlook and guidance

• Avocado industry volumes expected flat to slightly lower in Q4 2024; transition to Mexico-centric sourcing.

• Avocado prices anticipated to decrease sequentially but remain about 15% above prior year Q4 average.

• Blueberry segment to see higher volumes but lower prices, impacting segment Adjusted EBITDA.

• Full-year capital expenditures projected at $40–$45 million.

• Management expresses confidence in continued operational strength but cautions about external uncertainties.