Q4 2020 Mission Produce Inc Earnings Call
Good morning, and welcome to the mission produce fiscal fourth quarter 2020 conference call. All participants will be in a listen only mode. After today's presentation there'll be an opportunity to ask questions. Please also note. Today's event is being recorded at this time I'd like to turn the conference call over to Jeff Sonic Investor Relations at ICR served before.
As yours.
Thank you and good afternoon, today's presentation will be hosted by Steve Barnhart, Chief Executive Officer, and Brian Giles Chief Financial Officer.
Chief Operating officer, Mike Brown, who is also participating on the call today and will be available for Q&A.
Comments during today's call and the accompanying presentation contain forward looking statements within the meaning of the safe Harbor for provisions of the private Securities Litigation Reform Act of $19 95, all statements other than statements of historical facts are considered forward looking statements. These statements are based on management's current expectations.
And beliefs as well as a number of assumptions concerning future events.
Such forward looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the results discussed in the forward looking statements. Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC.
Also refer to certain non-GAAP financial measures today.
Please refer to the tables included in the earnings release, which can be found on our Investor Relations website investors <unk> mission produce dot com for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures with that I'd now like to turn the call over to Steve Bard.
Oh.
Thank you Jeff. Thank you for joining us on our first conference call as a public company.
We're very happy to be here today to share some insights into mission for this is wonderful business that we will continue to nourish and growth for many years ahead.
We enjoyed speaking with many of you will add on the virtual roadshow.
On our IPO on October and we look forward to meeting more of you during our participation at investor conferences in the future.
As the original founder of this business 37 years ago I'm extremely proud of the mission Proteus organization that we built today and the leading global leadership position that we hold the day.
The avocado industry is tremendous for this large $14 billion global addressable market and the secular consumption trends that underpin the consistent growth we've enjoyed for decades.
However, I believe we are just getting started despite all the growth that the category has enjoyed over the past decade here in the U S, which represents just over 40% from the global market for.
Capita consumption is still only about half of what Mexico concerns.
Demographic trends are in our favor with millennials and the growing Hispanic population here in North America, both of which are at an incredible impact on our industry.
Moreover, trends towards health and wellness clean foods nutrient dense super foods are perfectly aligned with our business.
We are the only global pure play provider of avocados in the world and we didn't become the industry leader by accident.
Mission is a story of true innovation, we've been first every step of the way blazing the trail with innovations that the entire industry enjoys today.
We were the first day use avocado ripening centers.
For the first two important avocados from Mexico, Chile and Peru.
We were the first to utilize state of the art post harvest techniques and hydro cooling and shelf life extension.
And we were the first to build on category management program to generate any tail and opportunities for category growth.
Mission as an organization that considers first to be cultural foundation it stands for fun.
Lady.
Reliable successful and trustworthy.
This is what has allowed us to stay ahead of our competition and grow into the global organization. We are today.
We have been building relationships investing in infrastructure and establishing our dominant market position for 37 years.
Fragmented players make up most of the industry, but our customers are demanding consistency and efficiency. There is no. Other company that can supply in large volumes consistently year round to the scale that mission can.
This takes infrastructure, that's not easily replicated our global network of Gore relationships banking houses for with distribution centers and ripening centers. In fact mission has been so successful on building a presence in new markets that we were forced to identify new sources of supply and today, we find ourselves as a vertically integrated grower and distributor.
As Ive a guidance with our own operations in Peru, which is ideally suited to meet year round demand drink Mexico's off season.
For all we've accomplished to date, we have significant opportunity for growth ahead.
Poised to capitalize on the strong trends in our core U S market by expanding our nationwide distribution network. We are continuously looking at optimizing our infrastructure opening new facilities and forward distribution centers to improve throughput better service, our customers and drive sales.
We are leveraging our global supply chain and.
And distribution capabilities to continue developing international markets.
In Europe, we've been empowering retailers to grow the category through direct access to high quality REIT product by the way of our export capabilities in Peru, Guatemala in Colombia.
And in Asia, we are leveraging our more than 35 year presence in Japan and existing Chinese distribution facilities to service as a platform to build our Asian distribution network. Both of these regions present immense long term growth opportunities for us consumption rates that are a fraction of what the U S has grown into today and for.
Finally, we will continue to invest in our diversified sourcing capabilities to enhance our global leading market positions and year round supply position.
Avocado as are no longer a seasonal fruit and we're continually evaluating opportunities to optimize our sourcing capabilities for third party growers as well as investing in our own farms and to ensure that we can control the quality that our customers have come to expect.
We've invested more than $350 million on our business over the past 10 years to build the infrastructure that shareholders are able to enjoy today. This infrastructure enables our financial model, which we expect to generate compounded adjusted EBITDA growth in the low double digits over the long term.
As a result, we're able to maintain an extremely healthy capital structure with nearly no debt and continue to fund our capital priorities that will fuel our growth for many years to come.
With that I'll pass the call over to our CFO, Brian Giles for some commentary around our recent financial results.
Thank you, Steve and good afternoon to everyone on the call I'll start with a brief review of our fiscal fourth quarter 2020 performance ended October 31st 2020, and touch on some of the drivers within our two operating segments and I'll provide a snapshot of our strong financial position and conclude with some thoughts around our outlook.
As Steve mentioned, we had a great fiscal fourth quarter, 2020, which met our plan and reflects the strong global infrastructure, we have in place to service, our blue chip customer base total.
Revenue was $206 $8 million compared to $231 $7 million for the fourth quarter of 2019, representing an 11% decrease the decrease in revenue was driven by lower average selling prices, which declined 24%, partially offset by volume growth of 16% on that.
On the price volume dynamics in a moment, but would like to reiterate that our business has managed the volume targets as we leverage our global presence to drive share of fresh avocados to our retail and foodservice customers well.
While prices fluctuate given the influences of global supply and demand. This is not something mission can't control our forecast with any degree of certainty.
That said our leadership position on the global value added marketer and distributor of fresh avocados Insulates, our gross profits.
These sought after value added services, such as ripening storage and distribution are largely unaffected by price changes.
Fourth quarter gross profit decreased 7% compared to prior year. Despite an 11% decrease in total revenue driving a gross profit margin improvement of 70 basis points to 19% of revenue.
SG&A for the fourth quarter increased $6 1 million to $16 $8 million, reflecting higher stock based compensation expense due to awards that vested upon successful completion of our IPO and higher professional fees.
For comparative purposes stock based compensation was $3 $9 million on the fourth quarter 2020 versus no expense from the prior year period, as we were a private company.
Net income for the fourth quarter 2020 was $18 $8 million 29 per diluted share. This compares with net income of $23 $9 million or <unk> 38 cents per diluted share for the same period last year.
Adjusted net income was $21 $9 million for 34 cents per diluted share for the fourth quarter of 2020.
Compared to adjusted net income of $24 $7 million or <unk> 39 per diluted share for the same period last year.
Adjusted EBITDA was $32 $1 million for the fourth quarter of 2020 compared to $36 $8 million for the same period last year.
In terms of our segment drivers, our marketing and distribution segment net sales decreased 12% for $202 million for the quarter.
As I mentioned, the lower revenue was driven by lower average selling prices, which declined 24% and were partially offset by volume growth of 16% as.
As we look back across the fiscal year strong industry supply in California, and Peru had an adverse effect on average price.
These decreases were concentrated on the second half for fiscal year, 2020, which impacted the fourth quarter and drove the year over year revenue decline despite meeting our volume goals for the quarter and year.
Compared to the 12% sales decline our segment adjusted EBITDA decreased to a more modest 4% for $19 $4 million.
This is due to the insulating effect up or per box margins in our marketing and distribution segment, where we can drive down through cost in correlation with lower market prices disability combined with our scale diversity of sourcing value added differentiation provides a structural advantage for a model that we expect to remain in force over the long term.
Our other operating segment is called international farming and represents our own farms that we manage in Peru.
Actually the dynamics of this business are quite different from those on the marketing and distribution segment.
Here, we behave as an operator and our ability to scale our operations in an efficient and profitable manner are central to our current and future success.
While we are more exposed to price in that segment compared to our marketing and distribution segment as Steve mentioned this is a highly strategic initiative for mission are.
Growing base of global customers required year round supply at today's key growing regions can't keep up with international demand.
As a result, we made a commitment close to a decade ago to establish a presence for weed control our own supplier that we are able to solve our customers through our marketing and distribution segment operations as well.
We look forward in the short run growth within our international farming segment will be dictated by yield improvement within our maturing orchard, while longer term growth will be supported by additional producing acreage that will come on line and subsequently mature.
For the fourth quarter International farming segment sales increased 24% for $22 million due to volume growth of 46% driven by higher yields on existing orchards versus prior year, which is a driver that we expect to remain in force for several years as the orchards approach targeted production at full maturity.
Harvest timing also came into play on volume when we look at the business from a quarterly perspective.
This year, we experienced a delayed harvest due to the timing of fruit maturity, which led to a larger percentage of fruit harvest stayed on the fourth quarter versus the third quarter.
Net sales increased 85% to $4 $8 million due to higher packing service revenue has provided the third party growers driven by their higher volumes.
Segment, adjusted EBITDA decreased 23% for $12 $7 million due to lower sales pricing during the quarter, which was impacted by higher overall supply conditions, resulting from large industry volumes from California in Peru relative to prior year at harvest timing in Mexico.
Shifting to our financial position in October 2020, we completed our IPO of common stock in which we sold seven 5 million shares at $12 per share generating total net proceeds of $78 1 million after deducting issuance costs.
Including the IPO proceeds cash and cash equivalents were $124 million on October 31, 2020, compared to $64 million last year total debt was $174 $1 million.
Mission financial model has historically generated strong operating cash flow, which has provided us great flexibility to support our long term growth objectives with their with the required infrastructure and sourcing capabilities.
Significant investments in the business over the past decade, as we built out our global footprint on <unk>.
Net leverage ratio was very healthy at 0.5 times, our full year 2020 adjusted EBITDA.
Net cash provided by operating activities was $78 $9 million for fiscal 2020, which is a decrease of $13 7 million compared to prior year.
This decrease was primarily attributed to our lower adjusted net income, but was partially offset by lower working capital requirements, which were driven by an overall decrease of market pricing conditions.
Capital expenditures were $67 $3 million for the fiscal year 2020, compared to $29 7 million for the same period last year as we invested in the construction of our New Texas distribution Center farm development in Packinghouse expansion in Peru, and land improvements on new land leased in Guatemala, Our tech.
This distribution center is on track to be completed in the third quarter of fiscal 2021.
Yeah.
In terms of our outlook, we are providing our expectations for fiscal first quarter of 2021, which calls for consolidated volume in the range of 155 to 165 million pounds translating to revenue in the range of $165 million to $175 million and consolidated adjusted EBITDA in the range of 11.
On to 12, and a half million dollars.
I'd also share a couple of considerations as you think about the sequencing of our business from the standpoint of our fiscal year, which ends in October.
November and December tend to look similar from a volume standpoint, however, we have a significant lift in the business associated with the Super Bowl in January.
So speaking with you today in mid January we are still extremely active before we closed the quarter, which is why we are providing a wider range of expectations for volume revenue and adjusted EBITDA.
As we've discussed here today pricing is not something we can't control. So we think that providing you with a volume based metric is a better representation of our ability to meet our growth objectives on revenue.
Further I'd like to reemphasize that we have better control of our margins within the marketing and distribution segment, which we expect to translate to more consistency on the adjusted EBITDA line than what we may experience on the revenue line again due to changes in pricing driven by market forces.
That said, we are providing long term financial targets today that we believe outlined our goals and underpin the management of our business. We believe that over the long term we can achieve on.
On pound volume growth in the high single digit range in line with our expectations for industry growth rates.
Adjusted EBIT margins in the low double digit range, excluding any material nonrecurring events for extreme market conditions.
Compounded adjusted EBIT growth in the low double digit range.
That concludes our prepared remarks, operator now over to you. Please open the call to Q&A.
At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is on the question queue. You May press star two she'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
So one moment, please while we poll for questions.
Okay.
And our first question comes from Bryan Spillane with Bank of America. Please state your question.
Hi, Thanks, operator, and good afternoon, everyone.
Brian.
A couple of questions from me, maybe maybe the first one is just as we're thinking about this year.
2021 relative to.
The long term.
EBITDA growth expectations.
What would we would it be fair to assume just knowing where pricing is now debt.
'twenty, one would potentially be a year, where maybe it would be more difficult to achieve that debt that EBITDA growth expectation that you have longer term.
Well I think one of our obstacles right now is the <unk>.
Volume coming into the marketplace.
Prices are pretty cheap.
By comparison to what we've been used to.
For most of the time over the last five years, but.
Hopefully we can make it up on volume, which is absorb a lot of the overhead.
I think you'll probably see a reduced.
Margin for box, but we're going to have more boxes. So.
Right, Yeah, I think we will end up being pretty close and I'll I'll add on to that I think that certainly lower pricing creates some different challenges for our international farming segment.
Than it does for our marketing and distribution business again as.
As we sit here today.
Our farming operations really don't pick up significantly until we get into our Q3 and it's tough for us to anticipate where pricing is going to be at that point in time.
But if pricing stayed at levels, where it is today.
Would put what put pressure and create channel.
But that being said, we've seen large movements in pricing over a fairly short periods of time. So we're we're hesitant to really make any.
Our projections at this point of where we think pricing may be as we move through the summer months.
Okay and then just just two on costs I think you called out lower field cost in Mexico in the quarter and then I know we've seen freight costs in the U S kind of moving up just more broadly so maybe could you just touch on those two topics and how we should be thinking about those as where we're modeling out 'twenty one.
Well I think there's two areas that are pretty common in the avocado World Super Bowl has an effect on.
Price is going up right now because the demand is record setting on volume.
It's growing up in the field also and then the other time it'll go up in Mexico is right after Easter and that they generally take most of that week, often don't harvest and it creates a gap.
The U.
U S inventory in it.
Historically has not caught up and the prices generally go up after that period of time on the calendar.
I kind of reiterate or kind of add on to that debt.
Terms of field pricing on it adjust pretty much in sync with what market pricing, our retail price, maybe not so much retail but market pricing for free to our customers.
So we're on a daily basis evaluating prices, we can afford to pay in the field to hit our margin targets there's points in time, where that get squeezed a little bit and there's points in times, where we're able to expand it a bit.
But I think that generally when we're buying third party for those costs are pretty variable and they can move in line with where market pricing is that I think to some of the other input costs and as Steve mentioned, probably transportation is one of the larger ones I think we have seen share.
On increases recently.
Nothing that created significant challenges stress and achieving our margin goals, but it is something that we continually.
Keep an eye on as we're looking at what we can afford to pay for fruit in the field and as we determine pricing for our customers.
Okay, and then last one for me just relative to the Super Bowl, if the Buffalo bills, when Mike Brown day, a week off.
[laughter], you'll have to asking on the line.
I'm glad I'm going to need the week off.
[laughter] sidewalk.
[laughter] alright, guys. Thanks.
Hey, thanks for the for the help.
Okay. Thanks, Brian.
Yeah.
And our next question is from Tom Palmer with Jpmorgan. Please state your question.
Hey, guys. Thanks for the question.
I just wanted to follow up on the supply picture in Mexico, what is really driving the high supply into the U S is it that the harvest was abnormally strong.
Has demand from other parts of the world in some way had been impaired and therefore more a higher percentage of Mexico's harvest is coming into the U S. And then as we think about kind of the timing of that flow through when does Mexico become less important relative to seeing.
Like California, and cooler ramp up and do you have any early read on yields in those regions.
Yes.
Well historically, what what'll happen for Mexico will generally.
It has a peak and then they taper off last year. They peaked late in the season. That's why you saw on the fourth quarter drop in price levels.
And that has continued so.
You know, we don't think that they can maintain this sort of volume 12 months they never have historically.
So we as I mentioned a minute ago.
My guess is somewhere around Easter or right. After this thing will start creeping up a legitimate lease I'm not talking about the Super Bowl, which is sometimes temporary.
But on a longer.
Longer term basis.
And net.
Yes.
Now what's changed from small growers up on the mountains, maybe not.
I don't have the infrastructure of the irrigation practices. So they have to harvest. This time of year into a larger grower that has irrigation and can play.
Play the game a little bit stronger.
Which generally drives prices up so you look for the thing to change here.
A couple of months.
I don't think it's going to go Crazy, California doesn't have that big a crop, but Peru is a big on crops. So.
You know they don't take their turn on the pot so to speak.
We just work with all sides of it.
Trying to get ahead of it and stay ahead of it.
I can just add a little bit to that.
The.
The summer crop for for Mexico.
It's really dependent on on.
The balloon they call logo and that's undetermined at this point, but as Steve mentioned, the second half for the year a lot of things happened with the with the Mexican crop in terms of quality and availability. This has been an on crop on.
Crop season for for Mexico. So their crop is is larger this year isn't that other markets aren't taking the fruit. Its just a just a larger crop and.
A lot of actors harvesting, but.
The other thing that Steve mentioned as we look to the summer, California is down in terms of industry estimates.
Probably 85 million pounds about 2022%.
Versus last year and Peru is.
Preliminary estimates for Peru, it's only up for the U S market about 20% or 36 million pounds. So there.
There's possible day laid out there for.
This this this static.
Pulse of heavy volume coming at us.
Great. Thanks for that color, that's really helpful and given how low prices are today I realize youre dealing with a perishable products, but you also have facilities that can lengthen the shelf life to what extent are you building up more inventory than maybe you typically would to take advantage of.
Low prices to distribute.
You know, maybe a quarter down the road.
Well not too much for one of the things Thats happened right now on the market in Europe, a lot better than it is here.
For sending.
Bill amount over there on a weekly basis as we are into Asia.
Spreading it out but trying to play the market.
This time of year, we try to avoid that late in the season, when we see it.
Definite end of the crop we will try it.
Uh huh.
So that there is plenty on food out there to keep playing games on AG at this time.
It's kind of a risky.
Understood. Thank you.
Yeah.
And our next question is from Gerry Sweeney with Roth capital.
Good morning, Steve, Brian and Mike Thanks for taking my call. Good afternoon, I'm, sorry, I apologize.
Good afternoon.
Just wanted to dig in a little bit more into timing and volume et cetera.
From what I can say here are from what I have heard it sounds like Mexico had it on crop.
On the alternating year side and the crop came in later in the season. So we had a lot of volume coming in but then we also had your volume partly due to timing.
But I was also curious as to how much.
You benefited from maturing fields versus maybe good weather et cetera.
Because if some of this pricing edges out or.
On your volume stay up there is there could be a pretty strong delta in there on.
Profitability at some point as well.
Well I think we're raising our numbers in Mexico are up because we're pulling it through the system they've got a larger customer base than we had a year ago, our export business is substantially bigger.
<unk>.
Like I said mentioned in going to Asia will go on to.
For Europe, and we're going to South America.
The.
The substantial amount of our products. So I think we're in a position where we can.
Spread it out.
Providing a good product.
To make them right.
And.
I mean like I said I think our export numbers are probably close to double what they were a year ago on on what loads per week.
So.
Theres more fluid out there to.
Pack and distribute it if you have a place to go with it the problem with a lot of the Mexican shippers.
Not necessarily the U S shippers that are in Mexico, but for Mexican shippers, they really don't have a yearlong plans. So.
Rather than pull it through the system on the program on value added services transportation rights bags et cetera.
Net to the border.
And the only variable is price.
And then you usually get slaughtered when the markets are glut. They can do okay. If there's a shortage but.
It's just a different model, it's a different game. It takes a long time to get to the position.
Our mission and some others are in.
Big investments a lot of time and effort to get the customer base, where you can pull it.
There's really a twofold.
Market.
For the Mexican from.
And Jerry I guess I'd add a little more on our Peru.
And particularly as we look at our <unk> site.
I think we're looking at.
Certainly we're anticipating growth in our volume from our own farms in 2021 on a relative to 2020.
We think we'll have better information as we move forward in the next couple of months in the Bloom is set but we continue to watch out for.
<unk> develops on the tree. So we will have better estimates as we move closer to the summer Bun.
We do anticipate higher volumes from our own farms Ah this year than we had last year I think when it comes to pricing that is probably the bigger variable that we're looking at and we touched on it a little earlier on the call is that.
Certainly if we we've seen a broad range of pricing over the last for five years. So when we're doing our modeling we're kind of trying to take into accounts, where we think pricing will settle in based on all the factors that come into play.
Certainly.
We would hope.
We hope as we move towards the summer months debt pricing does pick up from the levels that it's at.
Right now, but we don't know with certainty that it will.
That is going to certainly have an impact on on what the profitability of that segment looks like as we move towards the end of the year.
Got you so at the end of the day I, we all follow up.
A little bit with you offline, but at the end of the day, you were expecting a higher yields or higher.
And out of your your international farming.
And this year coming up in this.
I guess it was 2000 fiscal 2020, yes, yes, I mean as the trees mature not lose that kind of in line with our expectations is that we still have room to grow before the trees reach full production levels.
Thousands of acres planted.
For that aren't producing yet.
No no no I get that they're maturing, but I was just also just curious if.
Production was that 46% with a I think you mentioned was higher than you would anticipated that's all.
Oh and last year it was pretty in 2020, it was pretty much in line with what we expected and I think debt, we mentioned that 46% was not the increase for the entire year.
Fourth quarter for them.
Q3 was relatively flat year over year and it was impacted by timing of harvest.
Got it overall I think for our growth last year was probably about 20% and production from our own farms.
Got it okay.
Got it that's helpful. I appreciate it thank you.
Thank you.
And our next question is from Ben <unk> with Stephens, Inc. State.
State your question.
Hey, good afternoon, guys congrats.
Thanks.
I wanted to ask as it relates to your long term guidance. So you guided for high single digit volume growth and low double digit EBITDA growth, but presumably margin expansion there.
Curious.
When you think about disaggregated the margin expansion how long how much of it comes from continued margin per pound unlock and your marketing and distribution business versus.
I would assume yield per Hector improvement and just fixed cost absorption improvement in your Peru International farming segment.
To the extent you can add color there that'd be helpful.
Sure I think that were certainly as.
We generate better margins on the sale of our own fruit as opposed to buying and selling third party fruit as the production from our own farms increases and it becomes a larger percentage of the overall for it that we sell that is absolutely going to have a favorable impact on our margin profile and we built.
Leave that that's probably the larger portion of the margin improvement that we'd expect to see in the near term I think on our marketing and distribution segment, we tend to operate our target a range on a per box margins.
That we shoot for sometimes we operate a little bit above that and then we saw that during the latter half of fiscal 'twenty. There are times, we operate a little bit below but I think there's a per box margin that we generally target.
I think there are things from an operational perspective that we're looking out that we've been looking at in terms of material cost and transportation cost reductions that could add pennies here and there to that number but.
I think that in order to achieve our overall top line growth and that's really where the interest of growth.
Houston segment is going to come from it's going to come from driving volume as opposed to necessarily squeezing significant margin growth out on that side of the business.
Okay, and thinking about Peru, and I don't want to belabor. This point, but if we think about the supply demand set up for this year as we transition out of Mexico, and then to California, presumably supply will get tighter in the summer I would also assume we will get some demand recovery as we move for this.
Although I know retail demand has been very strong foodservice could come back.
I would think that would support pricing to the comments that you made across the broader market at what point do you have to start making commitments around your.
Fixed price contracting on the Peru crop.
For the back half of the year it doesn't happen and start in the spring and stagger through the summer what does that lead time like.
Well, what we usually do it.
About a month out of.
No.
At the beginning of the harvest I mean, we'll have a better idea of let's say two to four weeks out before we start harvesting and keep in mind it'll take.
Two to three weeks to get here.
So we're probably looking at.
You know early April on.
<unk>.
Yes.
Okay, great. So you've got the other day.
The other thing we do with that we will we'll work together with the retail and will stay put on fixed price.
X on it.
With a limit up or down, let's say $5, where it can.
It doesn't wipe out the other side out.
Yes.
I see okay. So think of it more like a band of pricing versus just a day.
Hey, a flat price with no variability up or down is that right.
Yes, Mike on moving band so to speak and say if you take your pick $30. If it goes to 30.
Five plus.
The price will not be 31 and then.
If it goes the other way it would be 29 as an example.
Got it okay. Thanks, guys best of luck.
Hum.
Our next question is from Brian Holland with D. A Davidson.
Good afternoon, everyone.
So I just wanted to debt most of my questions have been on so just a couple of quick ones here.
I presume not a big deal or else, we would have heard more about this but just thinking about how did the super Bowl on the seasonal demand here.
Gatherings will look certainly different than they did than they have in years past.
We see no impact just confirming on demand in the quarter on the Super Bowl just just given the different dynamics, we have this year.
I know what our record.
Volume for a week was over the last year with Super Bowl, but the numbers are pretty substantial this year on volume now the prices are lower but.
We're pretty happy about the volume.
Yep understood I'm just still on.
On the pricing side so volume.
<unk> remained strong and then just total on the foodservice side.
Any change as we look into the first half for 2021, we're lapping some mix in part a more biased towards kind.
The the retail channels in foodservice and any updated thoughts.
Any changes there.
The SaaS casual continues to grow actually.
The other white table outside of it goes up and then they shut it down on it goes back.
The fast casual has been pretty impressive.
On their growth.
They are much higher than they were a year ago.
Yeah sure.
Easy enough last one for me just kind of curious any impact from some other broader.
Somebody and stability that we're seeing in the Peru market I'm talking about a governmental level.
Any any impact at all to your business.
A little bit.
This is our slowest time of year down there. So we're really not affected were done with the blueberries really haven't started the avocados yet but.
Yeah, we've been quite familiar with it because we've been in the middle of trying to negotiate what that main issue is is some labor issues with some labor contractors not necessarily big companies like us are.
Gumbel sole or some of the others.
It's the little guys that are hiring outside labor services that aren't.
Doing what they're supposed to be doing but.
Or some reform going on there.
Some new tax rules coming out but.
Think that'll all be remedied here very quickly.
Good day, everyone agrees that it's isolated.
We know what the problem is we know what the solution is.
Fair enough I appreciate the color best of luck going forward. Thanks.
Thank you.
And ladies and gentlemen at this time I'm showing no further questions. So I'd like to end the question and answer session and turn the conference call back over to management for any closing remarks.
Okay, well again this is our.
For first quarter.
On our first conference call and I'd, just like to thank goodness.
So thank you on appreciate everybody's interest and mission and we look forward to along on profitable partnership and thank you for your time.
Thank you. This concludes today's conference. We appreciate everyone for their participation and have a great evening. Thank you. Thank.
Thank you.
Okay.
Yeah.