AVO - Earnings call transcript Q2 2024

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Operator

Good afternoon, everyone, and welcome to the Mission Produce Fiscal Second Quarter 2024 Conference Call. [Operator Instructions]

At this time, I'd like to turn the call over to Jeff Sonnek, Investor Relations at ICR. Please go ahead, sir.

Jeff Sonnek

Thank you, and good afternoon. hosted Chief Barnard, Financial be and Executive will Giles, Bryan Officer. presentation by Chief Steve Officer; Today's The comments safe during of contain the forward-looking today's Securities XXXX. call and within Private meaning the the of Reform the Litigation harbor of statements provisions Act accompanying presentation All statements forward-looking than other historical facts statements considered are of statements. of on events. future based management's beliefs are concerning expectations statements and well assumptions as These current as a number

materially actual from unknown statements discussed risks known and results are to could that forward-looking forward-looking differ Such the and cause results in statements. subject uncertainties to

Some in reconciliations on of in included certain refer the Investor our non-GAAP also these and risks Please of and uncertainties investors.missionproduce.com, measures to found financial tables to the SEC. directly the Relations are website, identified their earnings refer non-GAAP discussed today. the most with financial release, measures company's which comparable measures. for filings to be We'll GAAP can

the Steve? to that, to over Steve I'd call CEO. turn Barnard, like now With

Stephen Barnard

Thank you for joining us today.

in our increase deliver quarter avocados, the prior it an second in million. our in quarter Distribution sourcing improved $XX not cash Marketing year. our driven through network. The XXXX are XXX% Further, access quarter in Total consumer in quarter volume of our aids was global the year and for customers a demand EBITDA business with our million an robust were our We volume per from Marketing versus growth, again XX% operations fiscal XX% our to demonstrates XXXX. revenue in increased second second greater prices the Distribution up in by drive results, another to sign $XX.X volumes ability into half EBITDA which adjusted Adjusted per of by our capita fueled to to consumption consistent for flow up given segment operate sold of allows continued in second but and translated encouraging first the to avocado with momentum is our consecutive X% and which increased stable to unit Growth also industry pleased environment only segment. strong by performance. strong this growth through million showed $XXX efficiency, and the year-to-date record fiscal sales providing the

Our price of that for stable performance higher including in a value-added and fall unit margins, industry Mexico, implemented heavier services earlier start driven was season emphasis supply in by increases and a we sourced fruit XXXX. factors combination California generated on from harvest from in the avocado the growers an tailwinds directly per of

stronger reduce cost also our profitability combination with unit We control of and The and to higher progressed our contributed meaningfully volumes, per expenses. generation. efforts to corporate cash margin

had Nino conditions appeared Peruvian crop to while Looking have of its still year, the we for the second El resulting weather across are the year, in when sizing region. half to of in seeing notable during has development The the Peruvian avocado this on eased, effect the warm industry hours particularly and growing is the night stunned unseasonable and reduced fruit recuperating production volumes. the owned temperatures, tree decreases development fruit

to have of negatively our the leaning Peru third-party through will deliver fruit sourcing accessing same we augment to and fruit quality this than positioned by shortages Although most our that the the strength of remain from on these global supply regions. better impact customers of to other avocados, world-class come team expect

farming the XXXX process touched on a operations As our cost rigorous season. our international of started within Peru I harvest close we after quarter, last optimization

packing down operations. Our actions across here our driving and are focused costs operating on farming

cost impact won't year, allow annualized Farming to savings see the approximately million showcase margins to growing we us to the $XX the this International of While expected in we Peru in plan conditions our nevertheless when in expect are conditions into on these XXXX financial of fiscal will reductions improve. our performance and results, the translate achieve we improved smaller growing mitigating impact second in the half crop impactful

has strategy, been This and minimize industry. crop overall the across always have in impacts component has our business has been steps on business weather adverse a Over variable can our that and has that other in the over for weather key in exactly been geographies. and types our time, influenced results. intentional been Mission X the diversification why decades, is a diversification growth to namely avocado we've taking

revolution industry positioned have next strategic For investments blueberry to we business, lead the are our been and growing to mangos. making produce and rapidly we bolster well example, in the believe we

of we sold XXXX, In mangoes. approximately pounds XX million

However, U.S. the per we volume immense pounds. over current to X.X just only we with ranked beginning avocados are still tap capita fruit's demonstrating opportunity XXth to at potential X produce compared the XXXX, category. believe velocity at developing Mango's see pounds this in in in consumption into retailers

health trends in interest wellness desire the and versatile Hispanic consumer flavors. like This Asian also with for fruit increasing key and global and aligns populations,

Additionally, very to buyers nice avocado purchasing of XX% avocados. also with mango our mangoes are complement business

advanced texture expect. current countries state-of-the-art technology across whitening our popular Centers our sourcing mangos that provide avocado supply America to North include multiple the product and leveraging capabilities global of and customers Our in flavor meets Ripe quality, X varieties that from

with and built we're avocados, now products, but both ripening sourcing, all this on a synergies global position may mangos. distribution been with between network the success have replicate to potential the in of advanced Our prime

flavor premium towards was again been blueberry that differentiated premium allocating this Moreover, and our The by us capital profile, attractive consolidated on quarter. basis our grants to are partner levers varietals We've offer highlight higher yields alongside Blueberry business their a per unit retailers business and planning new these a across varietals additional Blueberry returns. for The increase providing and value consumers. margins added operations. and more optionality appearance

to resources given to in venture, projects flow allocating planned and our year improvement invest significant been joint continuing to committed this cash growing advance this remain in are have within operating future that We business the performance periods. for we the incremental

opportunities penetrate to support markets and continue in Asia. as also such emerging growth regions new and Europe We

In in cold includes finished XXXX. opened construction on distribution the storage category. ripening build-out capacity space center rooms, we United Kingdom, we handling for and build-out Phase X The of mango forward have the expanding our the additional

will opportunities we service it excited time some grow affords our us with markets. that food the to about completely U.K. are and capacity, into take new While the retail

well remains their a closing, Mission global drive profitability keeping of of our to healthy and in growth, enhance our I'm positioned execution, tremendous and In team great diversified proud network with maintain position Mission sheet. long-term for balance assets. focus

CFO, over that, pass With call Bryan commentary. his for the our to financial Giles, I'll

Bryan Giles

provide review are call. update financial quarter with some segments. that within everyone fiscal a to key industry touching second with I'll on drivers seeing. an we Thank our thoughts start of you, and financial conditions position our Steve, and Then the some on current good afternoon performance, on our reportable conclude the on the X I'll of

to growth segment. Blueberry quarter for XX% prices revenue avocado volumes to increase also of an volumes a sold Marketing to Distribution year. in and in spurred season revenue by Results harvest last our in extended attributed million, were avocado driven XXXX an the our sales fiscal same was second period $XXX.X Total the and compared X% supported segment, higher by increased XX% by increase where

primarily points higher further second our to per $XX These distribution of profit and $XX.X to segment. our increases Gross of were by in by increased gross avocados profit unit and Blueberry driven revenue. the segment million XXX by volumes XX.X% margin margins sold marketing in in increased and stronger million basis and volumes quarter supported increased sold

corporate to the X% compared expense $X.X a decreased expenses. to due primarily same our or general million in SG&A last year, period reduction

continue to reducing areas We first expenses, controllable on cost approximately and of the fiscal half of in these $X we have focus achieved million XXXX. savings during

same of the year. same diluted to share or diluted for diluted $X.X million loss or net was last $X was fiscal last share period diluted loss per share year. compared of XXXX $X.X income net for the income per $X.XX million $X.XX of an or million share second the $X.XX or $X.XX per compared quarter a million for net to $X.X adjusted Net Adjusted per period

$XX.X as performance Marketing primarily these segment. was Distribution $XX.X compared $X.X last increased the each our the million to measures stronger and same profit for EBITDA Adjusted of to period by million year. in in Improvement gross million driven

Turning segments. now to our

for growth million We to believe levels price and earlier. the sold. & increased sales to net Our elevated segment of gross described as higher year Segment due of a XX% higher in the primarily million EBITDA quarter, per $XX.X relative to indicative to $XX.X I unit period. increased lift million Distribution result the $XXX.X of that volume sales Marketing avocado are at adjusted of margins dynamics favorable these avocados sold last the demand volumes avocados during

targeted our quarter, we a in directly which overhead the that on unit of absorption heavier better earlier from start stable services avocado of in implemented success range, our harvest at to supply season, the by source enables per year. fixed above value-added costs, fiscal achieved and industry emphasis an fee Mexico, beginning During capturing for driven were fruit margins growers increases and the California

start runs concentrated is the services quarter packing sales reduced services starts see the growers. April activity impacted size second provided negatively year. to half fiscal the which that Peruvian of and have harvest delayed third-party avocado into business handling our in year Farming the in typically to fiscal the is typically season, and alignment season the current in International Our avocado These in our harvest in Nominal avocado tied to by of with Peruvian and crop September we each second been year.

fourth season, in traditionally Activity alignment blueberry were and July same fiscal typically and negative million and in with our in the Blueberry segment our respectively, through mind, $X.X quarters segment last which adjusted segment period $X been the first International February. of the this sales Peruvian year. harvest in and to million total the in $X.X $X.X year negative runs has EBITDA from With Farming million, in million concentrated compared

to net year, And the sales increased timing compared the we to experienced the year. volumes last result, to higher a period in same season second harvest of Segment attributed as the to quarter to increased prior in sold. last year, $X.X as volumes driven $XX million million compared to year compared same million $X.X in increase the period. by EBITDA million $X.X the adjusted This

nature. Shifting We half of compared markets. supply XXXX, are shorter terms at increases first are seasonal financial $XX.X $XX.X cash typically million other during flows working and source to our April than cash in the Operating XX, were under Mexico Cash as see is XXXX. in of XX, October year for terms from our our predominantly to established equivalents fiscal sourced million capital position. that payment as

we segment occur will that fiscal half during inventory in Farming year year. are building the addition, In the second during and growing the International the of of sale harvest first for our our crops ultimate half

year-to-date. in Net months activities flow performance of year. I provided That XX, said, driven increase was operating we million for cash million improved cash by $XX.X with just XXXX, the our last operating cash management of ended capital $XX.X The X million very the are and used pleased April to same activities seasonal dynamics operating the for improved was compared working described. by $XX operating period

XXXX, XX, farming-related at construction to America million in $XX.X million months for lower Working was U.K. mitigated by cost expanding capital as facility. blueberry with from crop Latin were investments resulting avocado last year, improve Capital $XX.X to growth our part the capacity attributed the costs X growing as the April current compared were savings associated initiatives. ended inventory distribution and our year well and in expenditures in

year-over-year tapering maintaining investment cycle to a As we continuing flow We our improvement our while on toward in the a driving multiyear committed remain facility structure capital heavy recent support capital to and avocados. mentioned as means the call, cash of ongoing in last spending expansion healthy our farming projects. off free reduction reflects

are accelerate partner the alongside joint that in in land that to operating our the marketplace. development cash in order incremental operation, new been have the to joint have and future to in on having blueberries generated varietals the we for traction investments However, venture planned utilize by chosen plant years cultivation our capitalize venture

the to fiscal million from XXXX our range to Even As positive well a $XX flow to projected million positioned CapEx with a budget to is previous generate continue we $XX our increasing cash believe million, budget, our approximately are of CapEx XXXX. fiscal expectation. result, this up adjustment to we free in business $XX for

expect capital our to priority, leverage. healthy to a of want that I remains during we core the allocation our capital Debt our minimizes second the to maintaining strengthen paydown is half fiscal balance sheet priority near-term year. structure that and continue reiterate

the to In our around terms outlook avocados, inform have we associated it help crop. near-term this have XXXX Peruvian clear will persisted some farms cost industry fixed half negatively that our Beginning that avocado negatively the exportable more our from with in volume the second warmer despite own the affect drivers initiatives through year. context been at This our El reducing yields for Peruvian providing Nino from our of for of than development farms impact will implemented. with now reduction costs harvest last our of on fiscal decrease And temperatures of conditions are expectations absorption by assumptions. XX% your operations, is the fundamental volumes of modeling year,

but expect And the higher volume to higher support for profit fiscal fully negative pricing with sourcing decreases although extent offset markets, on we third-party lower levels we gross be the intend by generally total Farming impact to the the for to segment volumes We available. do not pricing, from of International some to work supply of offset supply will production year. the limited owned various from suppliers impact lower aggressively

by previously average XXXX. We the a volumes be to pricing weaker per year to of expect by our experienced to to 'XX quarter XXXX flat combined third to harvest on relatively pound Mexican prior compared $X.XX XXXX, season expected the earlier XX% the XX% result driven decline translates is XX% weather in Peruvian harvest an as which industry a compared sequential discussed. fiscal the fiscal third as conclusion factors quarter outlook approximately of to Avocado an with of during year-over-year basis increase to a

call with concludes prepared That our for industry the now Q&A. you. over pricing volume expectations. that to remarks. Operator, open aligns expectation to assumes Please Our

Operator

[Operator our with line Sweeney from comes Partners. Instructions] the question And first Capital of Gerry ROTH

Gerard Sweeney

supply prepared of this past in years think especially with improved that a driven And your of with demand. out this bit moving In I'm remarks, and discussed -- a this prices. the couple been and I volumes little if Mexico doing prices just that different -- and curious has of you demand is consistent couple by robust is just more years. supply what the market, to from the up

Stephen Barnard

consumption the it's prices look prices Well, couple prices look -- volume a back it the at pound. compared actually steps haven't When to a to or overall really affected years appears, up you year you that go sold higher the it. per Gerry, up at and continues higher ago, ago of X and

to long in revolution I lower. think prices. term, where we're volumes So I here But a that in times on the with years we've here higher somewhat compared of in said -- as were it's higher and past more continues mean, this Bryan had some volume consumption at grow, California, weeks it's to sheet. in Mexico, Peru,

the pretty at it's around, all way a good for So situation now. least

Bryan Giles

negative increases some of on in kind a when I add I'll had that certainly pricing few impact on last the -- to versa. Gerry, I there's seen that. years, we've big Yes, mean vice supply, think and it's in

into that some it. I from after was played likely COVID think there effect

seeing than saw now we're previously. more think I we normalized patterns shopping

than category seen few that. in over ties last there's consistent interest think the into engagement I probably we've think I maybe years, in the and supply more

promoting We're particular, seeing customers, with And more big think category. our retail aggressiveness in the those our customers, are I positives. at

consumption U.S. I higher we're it greater seeing level And we've in deeper a the and than here penetration market. a think particularly household in as consumers, result, a among seen of while.

I you and volumes positive. view when is don't a as as couldn't pricing a positive it it view we up think I So know up. how are

I a think is more seeing. numbers retail extreme than our be what that little may

is the customers extent, by category because that and up. But some to they're volumes. and retail up excited being think our do I moving that prices believe some of consumption I about significant cost they're at borne again, likely are is

it. making decision to they're the So promote

Gerard Sweeney

to Okay. Taking some that fair? degree. volume over Is price

Bryan Giles

Yes.

Stephen Barnard

so. I Yes. would say

Gerard Sweeney

of feel be of Yes. the there where on margins see those the past can supply, Also, on And bucket follow-up from though to I either and each. to what's do then at fee just are to sort Or headwinds catch-up up, you that would you way then being Is reasons, some gross any season. the years? and M&D driving other increases. cost appropriate side, think couple you one about talked a level? early And stable at there due out fees inflation gave still California just different level you be to you that would some several side, as a is the front on are some

Bryan Giles

Gerry, I think last answer the I'll first. question

at raising any we rates an extended line the to end last customers. year I in adjustments think our period rates were We've bring necessary without we made that to felt we the to value of meaningful services in increases, gone time the provide that our of our we on well. could certain product increases nature. transportation things transitory to distribution and seeing were we did back in as hold everything bagging weather, way We to for like some the were ripening for in try not of

that As apparent at we fees. those sticky, cost And more what raising look did. these to increases it became that's were had

is to we level -- providing though don't see doing. in Getting in felt will know, are necessarily extend others I to industry appropriate as the this to for the evaluate we increases year. those what services we the and think we raised them don't point with that need Steve. I move the through I a further, we're continue at line

Stephen Barnard

helps through same the the put those to I'm is just same costs it. thing mango add going volume on being to facilities of is truck. One that the going

efficiency cover also to So getting those help we're bit a little costs. more

Bryan Giles

in performance question, a tough exactly. gross Mexico consistently dynamic the true. we It's be back any exact larger pinpoint think we that such And it referenced year. to your the I moment this drivers was pinpoint getting to that's work mean the of not environment margin say the going actually that think to in. it's will than that absolutely first that last expected achieving It's I I year tough we prior call it was in I crop we're -- it. to

be expect we to smaller. it slightly anything, If

we we on quarter saw is where been a to what whole as think those the transitioning our the I that think continue and we've during much crop, don't quarter. industry customer we throughout of reduction as expecting, is out constraints the expecting to the communicating and of volume the harvest quarter were to expect hit a base. in I as

conditions caught exactly knowing elevated the So that a like pricing in little as situations challenging in was I been look past. supply think we've keeping likely going not the what to bit are

So part plays a that certainly of it.

-- California it's the underestimate think the year. I of you starting can't impact earlier season this

run from buying when We season running that a our fixed Oxnard fruit costs of than see lot We a during on through is what our higher starting location the when parties, -- harvest basis. season other definitely in we have contribution from year-round when certainly to third the we margin in the we're But product locations. Mexico that begins. carry we're co-packers fruit or California through ramp

I believe a how the -- and to kind But reference can that think a we had margin other. all it's they we of we other, we're impact. meaningful made So that difficult I explain both both one -- really them, one, very accretion to really the don't each to off play meaningful have they impact. they think versus pinpoint the fact

Gerard Sweeney

in fair. you. very, I'll dynamic queue. No, situation then get there. extremely Final it's And that's jump question, back Got very I

some segment. this and some down you into prices specifically of You being some potential operations for International crop talked it year-over-year. there there. may the translate then EBITDA potentially -- be in maybe side, that XX% Peru adjusted the you maybe of efficiency terms put farming could international offsetting But But about maybe the that, into the

Bryan Giles

little of of down then Yes. what season Where maybe kind reduce more farming the in standpoint. pleased experiencing and in specific give don't we to can what this see I how Peru happen costs of think with a focus operation Steve from last at our the we're perspective came we out ended, within was a bit we over big kind last harvest to year. to in profitability. season on today And been is us coming talk season expect weather forward last jump its achieved going and we've any I'll and our -- the when of results our we improve of can kind were numbers

summer process and year. began end So last this back has towards that through continued the of on

are cost . benefiting took. a initiatives of that we those actions So savings that those were result now from

I at we've be look significantly to we're we in certainly, planning than think last volume, years. what few when the numbers significantly were we what expecting for lower than lower seen

we And is As at a of seeing supply constraints, what seeing we relatively suppliers expect across with I up. result on industry line we're And that mean out reduction we're we're we're do hearing looking farms not other of where believe unique. that our that be our talking the on we're what pricing is farms own those the market. board. to with estimates in in Peru,

supply, second but a as we're fiscal So the we year. limited the whole going as to limited supply move industry through have have to well half as of is going our

expectations I for we certainly that's we had what at think it, we could that generate last higher EBITDA did when than year. year we this significantly look

result achieve we what think were the the line as in lack we're year more in farming expecting recovery last this I likely of saw are see and not that we of results more that to with volume, year. segment the a

there So going it's to we We for year-over-year, it's the expectations some look believe forward. that happen we've isolated excited possibilities I'm movement, certainly And events we think to going that then exist going have in fall discuss at to year Steve the with of again, We we weather through about will not We're that for wanted after see but right dramatic this what is I about transparent now. going with may work point I to certainly this that But think done. we're certainly, well that get short that the to remain think I we positive to be year the if be segment. weather signs that discussed. it.

Stephen Barnard

closer every California are El expand -- XX of I Gerry. Ninos of get. you about lot packing too. did probably it more really the of went a one Yes, fair they you by come the These Peruvian the and Peru of a orchards to share, just the years, in But but had to lot up have equator, that, is don't on -- distribution a early what those the and house, did, things marketing out packers arm. our great and we we notice we locked a or have mean

we up when goes not a it's help providing lot went on locked wins So would well a out everybody filling for too. gap gap production, it's of loads own, so our have covering consignment own had to market the our we and that the a it's fill which income pretty and out could and see and on pretty up, coming helped the everything us, we basis, has but good on

it moving El Nino So appears offshore. is

a So weeks, the couple be in here later idea. there of time trees on better recover a hopefully, the and in year. down have I'll a in put good set

Operator

Ben And next from of Capital Klieve Markets. Lake with Street the the question line comes

Benjamin Klieve

Congratulations on a nice quarter here.

the question initiative. First blueberry on

You now talked that segment, think kind wondering which the by for expansion. you the of kind initiative, had first into acres if that confirm that the that XXXX. of I'm just have accelerated that couple that's X,XXX by Is a years? of the was end can, of maybe targets but And end set goal still you of for you investments accelerating about I the that all,

a unchanged the accelerating CapEx you're is just you And the it? on that then expecting CapEx of you're and that basis, going initiative put into increased total Or level on total in? to second, have

Bryan Giles

same. at Ben, this expectations, total production still the point, around Our assumptions the are

and in where northern XXX region around down planted the which plan original in in in is hectares to develop is the up our of region plantings XXX of Peru. were, Peru, We part have land Chal roughly hectares the almost the

now When hectares a to will when the approved So what do this we mean total. the made I yes, We point we capital ago. scaled say what is some of a planning went overall that more was plan. 'XX. -- because of roughly. harvest for our we're project budget in . in I X-year timing outflow our around blueberry this original were the year, relatively in into out of off to original our changed season over efforts Nothing's with spend, I we roll we acres plan plan, with terms to plan planning a have X,XXX in this think X,XXX we back. at were for coming years line rough XXXX, reduce couple this

As we've and flow the we've had generated, we year that project price the higher pull gone cash this at closer phase look we've a decided development just of success with that's taken how back positive through with been the some points the the and in. to

towards of the to So this it half develop year, back we're going doing start land XXX the hectares of year.

So be some will -- cost will incurred this year.

to year. we we're just would and year, that But have do next Some will forward. pulling that's planning been fiscal into our next it cost roll

actually the through changed. of related mean, move as as we of not fact, to The I the looking we're to cost think development. opportunities And for reduce that overall has matter I CapEx project a development

kind think stand I that's we So today. where of

Benjamin Klieve

a And super regarding outlook. the That's question it. blueberry helpful. Got

out compromised other or is too it's there segment. that early the early is that Is to noted Blueberry all be no too to Or that indicate a the outlook had at is -- effect? to any because your for there just weather? maybe say? of problematic going it indication of the that operations. performance year, wondering you weather last are phenomenal conditions You other, one I'm way but Or

Stephen Barnard

that these barrier the variety. flavor the as on blueberries new of a the of the out and banner, Driscoll they is size, the double production produce that's of that that super premium run varieties blueberries not different this And appear to the plannings of doesn't on a of one It only they affect things mill almost get the because these compared much. -- special genetics but big new we're all

So said, fast Bryan possible. as accelerate as this we want as to

We land have the available.

And the to the the it through get we got because it to of enjoy team do had. do it, and great have we've cash and earlier. we So it year

Bryan Giles

Yes.

Steve's I the challenges indication no size be point, have to this think going the there's crop, with we to crop that Ben, year.

-- with things of seen. a the year think we've further planting I start we with blueberries should north, harvesting one than traditionally to the the what earlier little this

to So to last it's impact in third a we've extremely going pricing from benefited but don't we the the see we'll year years. in dramatic little what this an activity quarter, a likely blueberries with due high prior I QX environment seen if have more know supply Certainly, than in constraints.

a for environment it that in supply again, of I levels. We that more available. think settle coming will planning don't necessarily will think this overall be upon dependent year. pricing But rational that's at the type it we're likely

to And than our market larger sales think being as keeping Steve's kind is or in a driver whether insulate premium to we're markets, one U.S. Asia. market, out opportunities point, we that the of price planning that become average Peru. to the will into of we some see the of whole new them varieties those get extent, things with pricing higher our a we overall the for blueberries are as I the that here percentage believe of the that in primary

Benjamin Klieve

by lower the hear. you I'm it. going I'll next you of that One are kind get think to sustainable those costs number see that's in Got forward? annualized curious Peru. going is pick of to volume if extent if all get savings up? just operation. regarding the you're what -- enabled more cost it. normalized kind me you're getting and out -- for year there's That's reductions million that farming the volume of fiscal a those $XX million in of be more if back to that Got good savings, going queue question international $XX Or

Bryan Giles

initiatives we These size year costs These the before themselves. related are for this put Ben like. even long place No. what was farming the very much in to fixed knew to crop operations look are going

our to related packing Some operation.

just we historically. a leaner it's standpoint than I think what from have labor operating

operation. that is to beyond of related overall is some that's -- biggest that, cost costs is actually biggest the our -- are other there labor our so or doing And farms things variable think I When farming within but XX% that look have the roughly we driver. the certainly we harvesting. in we're

So benefit not a per acre result But to the costs the hectare less a and the of with that off coming directly going rest the as a XX% are that's correlated volume. basis, volume driven per is of lower more a they're cost or of see on tree.

So Maybe not the fixed. those XXX% to would periods. maybe to cost future carry into majority a of they're we of expect it, savings variability but little there's bit forward vast

Benjamin Klieve

Got it.

queue. . congratulations I'll Well, luck quarter. Okay. in back a the and Very third helpful. on in nice Best quarter, get again

Bryan Giles

Thank Ben. you much, very

Stephen Barnard

Ben. Thanks,

Operator

turn Ladies you. there further this time. questions call back no closing and management I'd gentlemen, like the at to Thank remarks. for are to

Stephen Barnard

speaking you Thank in we your soon. to again interest you Mission forward look Produce, with and for

Operator

today's conference. This concludes

You your for may now Thank you participation. at time. disconnect your lines this

Mission Produce (AVO) 6 Jun 242024 Q2 Earnings call transcript