Mission Produce (AVO) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $1.23 billion, with adjusted EBITDA of $107.8 million, reflecting strong execution, higher avocado prices, and growth in blueberries and mangos.

• Q4 revenue was $354.4 million, up 37% year-over-year, with adjusted EBITDA of $36.9 million, a 113% increase.

• Operating cash flow for fiscal 2024 improved by $64.2 million to $93.4 million, strengthening the capital structure and reducing leverage.

• Leveraged global sourcing to navigate supply constraints, particularly from Peru, and capitalize on favorable pricing.

• Strategic expansion in Guatemala, with USDA approval for avocado imports and construction of a new packhouse, and optimization of North American distribution footprint.

Financial highlights

• Q4 revenue increased 37% year-over-year to $354.4 million, driven by a 36% rise in avocado sales prices.

• Gross profit in Q4 was $55.8 million, with gross margin up 490 basis points to 15.7%.

• Q4 adjusted net income was $19.6 million ($0.28 per diluted share), up from $7.5 million last year.

• Adjusted EBITDA for Q4 was $36.9 million; full-year adjusted EBITDA was $107.8 million, more than double the prior year.

• Operating cash flow for fiscal 2024 was $93.4 million, up $64.2 million from the prior year.

Outlook and guidance

• Fiscal 2025 CapEx expected at $50–$55 million, mainly for international farming and blueberry segments.

• Anticipates higher avocado pricing in Q1 2025 (up ~20% year-over-year), with volumes consistent with prior year.

• Blueberry segment to see higher volumes but ~30% lower pricing year-over-year, impacting segment EBITDA.

• Per-unit avocado margins expected to revert to historical ranges as supply normalizes.

• Expects higher consumption and growth in mango and blueberry programs as industry supply increases.