Mission Produce (AVO) Stephens 26th Annual Investment Conference | NASH2024 summary

Company background and strategy

• Evolved from a California-based business to a global leader with 10 distribution centers worldwide, including Europe and China.

• Early mover in Mexico and Peru, securing year-round Hass avocado supply and expanding into Guatemala and South Africa.

• Focuses on vertical integration to guarantee supply and meet growing retail demand, with a strong emphasis on direct-to-retail sales.

• Diversified into blueberries and mangoes to optimize labor and leverage existing distribution networks.

• Strategic investments in farming and distribution support long-term growth and supply chain resilience.

Recent performance and market environment

• Achieved a strong rebound in 2023 after challenges with ERP rollout and global market conditions in prior years.

• Benefited from a supply-constrained environment, leveraging a broad global supply network to gain market share.

• Higher average per unit prices and strong retail promotion drove revenue growth despite flat volumes.

• Successfully passed inflationary costs to customers, resulting in improved margins and strong operating results.

• Retailers remain enthusiastic, promoting avocados heavily even amid supply constraints.

Capital expenditure and cash flow

• CapEx has stepped down after major investments in North American distribution and Peruvian farming, with most large projects now complete.

• 750 hectares of avocados planted in Guatemala, expected to enter production in 2026, with a new packing house nearing completion.

• Blueberry joint venture in Peru is the only major ongoing project; most assets are young and underutilized, offering future leverage.

• CapEx expected to normalize and decrease further, with a shift toward debt reduction and potential shareholder returns in 12–24 months.