Mission(AVO)2025-03-11 03:17Financial Data and Key Metrics Changes - The company achieved record first quarter revenue of 2.8 million to 7.1 million or 6.7 million or 0.09 per diluted share last year [21] Business Line Data and Key Metrics Changes - The Marketing & Distribution segment net sales increased 32% to 295.8 million, driven by avocado pricing and volume dynamics [23] - The Blueberry segment saw a 12% increase in revenue to 9.2 million, with adjusted EBITDA improving to 0.5 million year-over-year [24][25] Market Data and Key Metrics Changes - The company experienced industry supply challenges in Mexico, impacting avocado supply and necessitating increased procurement through co-packers and spot market purchases [8][11] - The company anticipates that industry volumes in the fiscal 2025 second quarter will be consistent with the prior year, with pricing expected to be higher by approximately 5% year-over-year [32] Company Strategy and Development Direction - The company is strategically diversifying its sourcing footprint to include key growing geographies such as Peru, Colombia, and Guatemala to ensure reliable year-round supply [13][14] - The company is expanding its Blueberry and Mango segments, investing in premium varietals and enhancing customer relationships to drive growth [10][11] - The company aims to enhance operational efficiency through the optimization of its distribution footprint and the closure of Canadian facilities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic operating environment and highlighted the resiliency of consumer demand for avocados despite inflation [7][8] - The company remains optimistic about long-term growth opportunities in Blueberries and is well-positioned to capitalize on shifting consumer preferences towards healthy snacking options [9][10] - Management acknowledged uncertainty surrounding tariff negotiations but emphasized the value of their global strategy to mitigate potential impacts [17] Other Important Information - Cash and cash equivalents were 1.2 million for the first quarter [27][28] - Capital expenditures for the quarter were $14.8 million, attributed to avocado and blueberry farming-related investments [30] Q&A Session Summary Question: Can you elaborate on sourcing from co-packers in the current quarter? - Management indicated that sourcing from co-packers was higher than typical due to a slight decrease in the overall crop in Mexico, but they expect to secure more direct inventory soon [36][38][41] Question: What is the visibility on unwinding working capital build in the second quarter? - Management noted that working capital strains are normal in the first half of the fiscal year and typically unwind in the second half, with expectations for improvement as they transition to harvesting their own fruit [44][46][48] Question: Have you observed any changes in supplier behavior due to tariff discussions? - Management reported that there was more movement and conversation among suppliers leading up to the March announcement, but overall supply remained consistent and they were able to meet customer requirements [51][53]