Q3 2024 Mission Produce Inc Earnings Call
Greetings and welcome to the Mission Produce 3rd Quarter 2024 earnings conference call up.
Speaker Change: At this time, up to Spinserney Listen Only Mode. If anyone should require operator assistance, please press star zero under telephone keypad. A question and answer session will follow before presentation.
Speaker Change: I'm going to press star one at any time, so you're placing the question cue.
Speaker Change: As a reminder, this conference is being recorded. It's not my pleasure to turn the clover to Jeff Sonnek of this relation. Please go ahead Jeff. Thank you and good afternoon. Today's presentation will be hosted by Steve Barnard, Chief Executive Officer and Bryan Giles, Chief Financial Officer.
Speaker Change: The company's president and chief operating officer, John Palowski, will also be available on today's call for participation during the Q&A session.
Speaker Change: Comments during today's call and the accompanying presentation contain forward-looking statements within the meaning of the safe harbor provisions of the private securities litigation reform act of 1995. All statements other than statements of historical facts are considered forward-looking statements.
Speaker Change: The statements are based on management's current expectations and beliefs as well as a number of assumptions concerning future events.
Speaker Change: 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.
Speaker Change: Some of these risks and uncertainties are identified and discussed in the company's filings with the SEC.
Speaker Change: will also refer to certain non-gap financial measures today.
Speaker Change: Please refer to the tables included in the earnings release, which can be found on our Investor Relations website, investors.missionproduce.com, for reconciliations of non-gap financial measures, to their most directly comparable gap measures.
Speaker Change: and with that, I now like to turn the call over to Steve Barnard CEO, Steve.
Steve Barnard: Thank you for joining us today.
Steve Barnard: A Romanimant fiscal 2024 continued with another strong financial performance in the third quarter. We grew revenue by 24% year over year to a record 324 million in generated a 49% increase in adjusted EBITDA to 31.5 million.
Speaker Change: Combined with our solid working capital management, these results translated into a $62.7 million improvement in our year to date operating cash flow performance versus the prior year period, which showcases our team's remarkable execution this year.
Speaker Change: We are particularly excited about these results given the challenges we faced on reforming operations in Peru this year with El Ninole resulting in poor growing conditions across the region. Our ability to pivot and ultimately capitalize during this environment underscores the enhanced alignment we fostered between.
Speaker Change: Our sales, operations, and sourcing teams.
Speaker Change: This enable us to effectively leverage the advantages of our global sourcing network to meet customer demand while simultaneously maximizing pre-unit margins.
Speaker Change: Well, the industry shortage of Peruvian fruit created headwinds for a farming operation, they created opportunities in our marketing and distribution segment to really shine.
Speaker Change: The market experienced strong consumer demand during the quarter and coupled with the supply shortages, this helps support continued strength.
Speaker Change: In the pricing versus our prior year, the industry's more constrained supply environment overall, both in Peru and Mexico was an opportunity for our team to bring missions comprehensive capabilities to bear to service customer demand globally.
Speaker Change: For instance, we are able to leverage our deep relationships and sourcing capabilities to supplement the lower industry volumes of a California fruit, where harvest yields were over 50% larger than the prior year.
Speaker Change: Our team's agility and quickly identifying the opportunity in California, gave us a competitive advantage in meeting customers' needs, resulting in a record share of the California source market for mission.
Speaker Change: Although our marketing and distribution segment was the highlight of the quarter, we were pleased with our ability to mitigate the impacts from the smaller crop in our international farming segment.
Speaker Change: As I mentioned, the market supported a healthy pricing environment during the quarter and combined with cost optimization initiatives we were successful in largely offsetting the lower volumes of owned avocados sold to generate positive adjusted EBITDA at a rate similar to the prior year.
Speaker Change: Looking ahead we've taken proactive steps to ensure the long-term health and productivity of our orchards following this weather cycle. We're encouraged by the signs of improvement and look forward to the return of a more normalized weather condition.
Speaker Change: As I noted earlier, our cost optimization have explained an important role in helping mitigate the challenges from this growing season and we expect them to translate into improved operational efficiencies when growing conditions normalize.
Speaker Change: Turning now to blueberries where we are approaching the start of the harvest season in our fiscal fourth quarter.
Speaker Change: Our exceptional cash flow performance this year has put us in a position to accelerate our expansion plans.
Speaker Change: As a result, we are pulling forward several projects that we were originally slated for future periods. This underscores our commitment to growing this promising segment of our business.
Speaker Change: The blueberry business not only compliments our existing offerings, but also aligns perfectly with our strategy of delivering high-quality, differentiated products across multiple growing seasons.
Speaker Change: I'm also pleased to report that our strategy to drive market share growth in the UK is well underway.
Speaker Change: In fact, our UK facility achieved profitability this quarter for the first time since opening just a year ago.
Speaker Change: This is a direct reflection on our team's focus on being nimble. We have been working hard on penetrating this market in a fashion that's sustainable and profitable.
Speaker Change: This required a refinement to our approach and as the team successfully adapted to the local market dynamics, fine-tuning our strategies to better align our customer relationships.
Speaker Change: Looking forward, we are excited about the opportunities that this facility and our investments in additional capacity afforders.
Speaker Change: In closing, I want to thank our team for an outstanding performance we achieved this quarter.
Speaker Change: Their hard work has not only delivered exceptional results, but has also reinforced mission position as the industry leader. Our diversified network of global assets continue to be a key point of differentiation for us, providing us the flexibility to successfully meet our customer supply needs.
Bryan Giles: Looking ahead, we remain well positioned from a competitive standpoint while our growth strategy in sound balance sheet with modest leverage to provide us the tools to drive values for our shareholders. With that, I'll pass the call over to our CFO Bryan Giles for his financial commentary.
Bryan Giles: Thank you, Stephen. Good afternoon, everyone on the call. I'll start with a review of our fiscal third quarter financial performance. Touching on some of the key drivers within our three reportable segments.
Bryan Giles: Then I'll provide an update on our financial position and conclude with some thoughts on the current industry conditions that we are seeing.
Bryan Giles: Total revenue for the third quarter of fiscal 2024 increased 24% to $324 million. Driven by a 36% increase in avocado sales prices.
Bryan Giles: This price dynamic resulted from lower avocado supply available during the quarter due to a combination of weather impacts on free development and production in Peru and fruit harvesting disruptions in Mexico.
Bryan Giles: Despite overall volume reductions, domestic sales volumes were relatively flat during the quarter, demonstrating the resiliency of demand for avocados amid higher price points in the U.S. market.
Bryan Giles: Gross Profit increased by $8.6 million to $37 million in the third quarter, and Gross Profit margin increased 50 basis points to 11.4% of revenue.
Steve Barnard: These increases were primarily driven by stronger per unit margins on avocado sold and our marketing distribution segment, which were attributed to a combination of favorable mix of source fruit and internal initiatives that Steve spoke to.
Steve Barnard: Within our International Farming segment, Gross Profit was down slightly during the quarter, excluding the $3.2 million asset disposal for undeveloped land and Peru. As the adverse impact of lower-harvest yields on fixed cost absorption was largely offset by higher sales prices and cost savings measures.
Steve Barnard: SGNA expense increased $2.8 million or 16% compared to the same period last year. Primarily due to higher employee-related costs, including performance-based incentive compensation and stock-based compensation expense.
Steve Barnard: Higher performance based incentive compensation is largely explained by our improved year-to-date operating performance relative to the prior year period.
Steve Barnard: We continue to focus on reducing controllable expenses, and we have achieved approximately $2.5 million of cost savings, fiscal year to date, in areas such as professional fees, travel, and operating costs among others.
Steve Barnard: adjusted that income for the quarter with $16.7 million or 23 cents per diluted share. Compared to an adjusted net loss of $10.3 million or 15 cents per diluted share last year.
Speaker Change: The Justice Unit increased $10.3 million or 49% to $31.5 million as compared to $21.2 million last year. This improvement was driven primarily by stronger growth profit performance.
Speaker Change: Turning now to our segments, our marketing distribution segment net sales increased 25% that 321.3 million dollars for the quarter. Primarily driven by the avocado pricing increases I described previously.
Speaker Change: Tagman Adjusted E, but increased $10.7 million to $26.8 million, as a result of higher pre-unit gross margins.
Speaker Change: During the quarter, we achieved avocado-preena margins that were above our targeted range, supported by a heavier emphasis on California-sourced fruit.
Speaker Change: The California crop was much larger than was originally expected, given a more flexibility in addressing supply challenges brought about by lower volumes available from Peru and Mexico, and enabling us to better utilize capacity within our Oxnard packing facility.
Speaker Change: Avocado Supply was nonetheless constrained during the period, resulting in a higher price environment that required more aggressive price strategies across our retail and food service programs.
Speaker Change: Though still a relatively small part of our operation is worth noting the success we experienced within our mango category during the quarter.
Speaker Change: Mengovimes increased approximately 40% and revenues doubled in comparison to prior year to $14 million.
Speaker Change: We've achieved meaningful improvement in our per unit margins as we continue to diversify our customer base and grow domestic market share.
Speaker Change: Total segment sales in the Justice E, but in our International Farming segment, we're $27.4 million, and $4.6 million respectively. Compared to $38.2 million, and $4.9 million in the same period last year.
Speaker Change: Despite experiencing a reduction in quarterly sales volume of greater than 40% from our own farms due to the unfavorable El Niño conditions in Peru.
Speaker Change: We were able to hold a justice-y but a relatively flat as a result of cost-containment efforts that were implemented near the end of the prior year harvest season and an advantageous price and environment.
Speaker Change: While we had anticipated a higher price market, the average sales prices realized were stronger than we expected at the end of the last quarter.
Speaker Change: Activity in our blueberry segment has traditionally been concentrated in the first and fourth quarters of our fiscal year, and alignment with the Peruvian blueberry harvest season, which typically runs from July to February.
Speaker Change: As such, we expected nominal contributions from the Bluebrake segment during our fiscal third quarter. Net sales in the Bluebrake segment totaled $1.6 million compared to $1.4 million in the prior year period, and segment adjusted the EBITDA decreased slightly to $.1 million.
Speaker Change: Shifting to our financial position, caching cash equivalents were $49.5 million as of July 31, 2024. Compared to $42.9 million as of October 31, 2023.
Speaker Change: We are very pleased with our operating cash flow performance year to date, which is up $62.7 million versus the prior year.
Speaker Change: That cash provided by operating activities was $55.4 million for the nine-months endage of July 31, 2024. Compared to cash used in operating activities of $7.3 million for the same period last year.
Speaker Change: The increase was driven by improved operating performance and favorable changes in working capital. The latter of which was driven by higher-grower payable balance is at the end of the third quarter, resulting from a heavier concentration of fruit sourced from California growers, which generally have longer payment terms than fruit sourced from other regions.
Speaker Change: In addition, growing crop inventory was favorably impacted by the previously mentioned cost containment efforts, combined with the accelerated harvest time and the current year, which resulted in greater than 50% of our own production being sold by the end of our fiscal third quarter.
Speaker Change: As a result, in the current fiscal year, we've been able to accelerate working capital reductions into the third quarter that we typically do not achieve until the end of our fiscal year.
Speaker Change: Capital expenditures were $25.3 million for the nine-month-centred July 31, 2024 compared to $47 million last year, and were attributed to avocado and blueberry farming-related investments in Latin America, as well as construction costs associated with expanding capacity at our UK distribution facility.
Speaker Change: During this fiscal year, the international farming segment also began construction of a
Speaker Change: Our Projected CapEx budget for fiscal 2024 remains unchanged in the range of $40 to $45 million.
Speaker Change: These figures reflect a continued step-down in capital spend over the last few years after a period of heavy investments in distribution capacity and farm development.
Speaker Change: We remain committed to driving free cash flow as a means toward maintaining a healthy capital structure while continuing to support our ongoing farming investments and facility improvement projects.
Speaker Change: We are proud to have generated close to $30 million of free cash flow through the 9-month end of July 31st, 2024, and we feel confident that our business will generate meaningful free cash flow for the full fiscal year.
Speaker Change: That paid down remains our near-term priority, and we expect to continue to strengthen our balance sheet during our fiscal fourth quarter.
Speaker Change: yeah
Speaker Change: In regards to our near-term outlook on the fundamental drivers of our operations, we are providing some context-runner expectations for industry conditions to help inform your modeling assumptions.
Speaker Change: Beginning with Avacados, industry volumes are expected to be flat, slightly lower in the fiscal 2024-4th quarter, versus the prior period, as we continue to feel the impact of the smaller premium crop.
Speaker Change: with the conclusion of the California and Peru Harvestesons. We will transition to a Mexico-centric source model during the latter part of the quarter.
Speaker Change: Sales of Exportable Avocado Production from our own farms is expected to be slightly below the fiscal third quarter, 2024 volume of approximately £25 million and significantly lower than the approximately £60 million sold in the prior year period.
Speaker Change: From a pricing perspective, we anticipate prices to decrease on a sequential basis, but remain approximately 15% higher than the dollar 39 per pound average experienced in the fourth quarter of fiscal 2023.
Speaker Change: We believe that higher price points at copper bovallium levels are a sign of continued strength and demand.
Speaker Change: The Blueberry's harvest season improved will begin to ramp up during our fiscal fourth quarter. We expect to see meaningful volume increases from our own farms, but the impact on revenue will likely be offset by lower average sales prices.
Speaker Change: The lower prices are expected to impact segment adjusted EBITDA during the quarter as compared to the previous year when supply constraints led to abnormally high sales prices.
Speaker Change: We are very proud of the progress we've made this year.
Speaker Change: We have been able to showcase our industry leadership amid dynamic conditions while also demonstrating strong financial execution with our powerful free cash flow generation.
Speaker Change: We look forward to continuing to execute our gross strategy and building on our momentum to drive value for our shareholders.
Speaker Change: That concludes our prepared remarks, operator now over to you, please open the call to Q&A.
Speaker Change: Certainly, we're not going to be conducting a question of answer session. If you'd like to be placing the question queue, please press star 1 under telephone T-pad. A confirmation told when they catered wine is in the question queue. Once again, that star 1 to be placed in the
Speaker Change: One moment please while we pull for questions.
Speaker Change: Our first question is coming from Ben Cleene from Main Street Capital Market Trailitis, now life.
Ben Cleene: Alright, thanks for my question, the congratulation when I really actually recorded from top to bottom here. First question, a couple related to your upcoming Peruvian Harvest in the avocado.
Speaker Change: I'm wondering, the volume that you talked about today seemed like a real reiteration of your expectations for three months ago But I'm wondering if you can comment on how was it all your expectations from Peru have evolved over the last three months as harvest is
Speaker Change: is approaching and then also can comment on fruit side and quality of that crop to just curious the extent to what harvest is able to be taken. We can be able to get that's really strong market pricing.
Speaker Change: I think the main reason we had some extreme heat down there, which we started out with what we estimated about 42,000 tons prior well.
Speaker Change: Obviously before the fruit was ready, but it was on the tree and we accepted experience some tremendous heat waves through the area due to El Nino.
Speaker Change: Um...
Speaker Change: I think we ended up with, I don't know what percent it was, as substantially lower than 42,000 tons. But the prices were much higher, so it offset it a little bit, but going forward, it looks like Hellnino's moved off shore and the trees look a lot healthier going forward.
Speaker Change: I've got an old
Speaker Change: kind of build on that as well, I think.
Speaker Change: When we spoke three months ago, we had a pretty good sense as to what volumes for this year we're going to look like.
Speaker Change: I think we could get an accurate picture of what was on the tree and we had a pretty good feel for what the size curve would look like. And I think it pretty much came through the way we expected in the fourth quarter. I would say, well, in the third and fourth quarter, I would say that...
Speaker Change: You know, the pricing did hold up a little bit better than we expected. I definitely, we had a smaller size curve and I think that's what.
Speaker Change: Concerned us a little bit about what the average selling prices may come to, but there was just such a lack of fruit at times during the period that the pricing remained high regardless. So I think we were pleased with how the season progressed as we moved through it.
Speaker Change: I think to these point as we looked in next year, at this point the trees are looking better. It won't be until probably December so that we'll start to see the flowering on the trees and we'll start to get a better sense.
Speaker Change: but to these point this last year.
Speaker Change: The fruit was on the tree, it was just what the weather it caused at the drop.
Speaker Change: So we'll need to make sure that as long as we get better weather conditions as we move forward we think that we can expect.
Speaker Change: Harvest, to kind of revert back to more normalized levels. Now, actually, that branch we have up north, which is substantially different in climate is a flower, and set already, and it looks pretty good. The southern winds are in process now.
Speaker Change: Things could change, but so we got to start with something good before he end up with it.
Speaker Change: I hear a loud and clear. Okay, that's all plans. I thought there are still some pretty at least up on the street down there, so thanks for clarifying.
Speaker Change: and all those points.
Speaker Change: Schipping North California, talked about kind of how strong that harvest is, but also that you have record share. I'm wondering if you can elaborate a bit on what drove the share increase in any comments you guys can make.
Speaker Change: from a quantitative perspective about how much you're sharing, increased overall level of share, anything of that nature would be helpful.
Speaker Change: Hey, Ben. This is John Polowski. I'll try to give a some commentary here and then let Steve or Bryan chime in if necessary.
Speaker Change: I would say when you think about California this year, not only were
Speaker Change: the expected volumes, you know, 25-30.
Speaker Change: I think close to 40% higher than anticipated we can validate that versus original estimates on the crop, but we had challenges like the rest of the industry in Mexico and Peru as well. So when we saw that coming, the teams internally pivoted to understand what was the best.
Speaker Change: Situation for our customers.
Speaker Change: and one of the things we saw immediately was trying to get...
Speaker Change: Moore share of the California crop, especially as it was getting a little bit larger.
Speaker Change: was going to be the best thing for our customers to make sure that we had the appropriate amount of supply and the right size curve because
Speaker Change: California was coming in with slightly larger pieces of fruit. What we did then was really work with our field teams.
Speaker Change: and I'm execute as far as we could with excellence. A lot of things that...
Steve Barnard: and Steve and team had done for years with building relationships with folks here, both in Northern California and its other California.
Steve Barnard: and understanding who owns those ranches.
Steve Barnard: Where they typically sell what those relationships look like and just quite frankly making phone calls and understanding where the fruit was and doing what we could department with those local growers and ensure we had the right amount for our customers. And ultimately we ended up with
Steve Barnard: Of course, the 3% share in the California market this year and potentially higher when all is set and done. So I know that's higher than we've had in the past.
Speaker Change: proud of the teams and quite frankly it came down to relationships and our ability to pit it quickly with what our customer needs were. Yeah, I agree completely with which on had to say, I think on top of that, you know.
Speaker Change: Some of this fruit, I mean, our relationship's not just with any growth, but some of these large scale growers in California
Speaker Change: I think that we saw a big growth with many of the larger players this year, who we were very proactive with and reaching out to and kind of developing a plan to market their fruit over the course of the season, so now I think that it was...
Speaker Change: when California is running smoothly, it's very favorable for our business.
Speaker Change: Well, I think this one last thing, too, with having our own people on the ground and both through and Mexico, we knew what was down there and could see the gap or the lack of fruit coming out of there probably before most of them did. So we got aggressive on this and it locked it up before.
Speaker Change: before the others did.
Speaker Change: I'm gonna work at it.
your dad: It's your dad. Very good. I appreciate that from all of you. One last question on the balance sheet.
Speaker Change: Cash Flow side. The cash was really exceptional. When you knew that was moving in the right direction, but certainly faster than the improvement was more material, I think that then I certainly was expecting.
Speaker Change: is great to see and I'm wondering, you know, given the momentum here and how strong your balance she did today, how your thought process.
Speaker Change: is evolving, if at all towards future capital allocation, you know, are you looking to maybe, you know, further accelerate?
Speaker Change: Capital Investments, and you have more flexibility now, you know, any, you know, maybe a color of the M&A, anything has anything changed in how strong your performance has been, or is your thought process, you know, unchanged.
Speaker Change: I wouldn't say anything's changed, but I think we've always kind of had the same priorities. I think we've gone through a period of time.
Speaker Change: Last couple of years where our earnings were weak and we leaned into our balance sheet a bit during those periods. So as we've gone through a year that's been relatively strong, I think first and foremost we wanted to get the balance sheet back in order and get the debt down.
Speaker Change: I don't think that we ever, you know, well, let me take one step back.
Speaker Change: When it comes to traditional CapEx, we've been communicating a step down in that capital spend over time As we have our distribution capacity built out, and we believe our farming supply needs have been met.
Speaker Change: So that step down has been a plan that we've had in place for years and we mentioned in the last call that we did accelerate some things related to blueberries because we saw the opportunity with the cash flow that had been generated within the joint venture.
Speaker Change: But outside of that, I wouldn't say that we're going and, necessarily, you know, doing anything overly aggressive compared to what we'd planned previously.
Speaker Change: I think M&A, it's always out there. We're always evaluating opportunities when they come across our table. It's not something that we've...
Speaker Change: Participated in aggressively in the past.
Speaker Change: But I think that we're always open-minded to how we can invest a compliment, the business that we have in place today. So I wouldn't say that the cash position alone changes are feeling about what we're going to do. I think we're going to continue doing the same things we've been doing. It's just nice to have a bigger pile of cash to do it with right now.
Speaker Change: Tom, it's got it. Very helpful. Well, congratulations again on a great quarter. Thanks for taking my questions, and I'll get back in line.
Speaker Change: Sure thing, Bryan. Thank you. Thank you, Bryan.
Speaker Change: Thank you. Next question is coming from Jerry Sweeney from World Capital Partners Realire and is now live.
John: and welcome aboard John.
Speaker Change: Thanks for watching!
Jerry Sweeney: I have one question, but it's actually a couple different parts, so I have one question,
Speaker Change: Look at that margins. Obviously we have some call savings initiatives. I think last year you highlighted your sort of going, your own growth note for a bunch of years and there was some opportunity to find two operations.
Speaker Change: As we look at this year, March is a part of a price, part of it sounds like cost savings initiatives, but just curious if you can give us a little bit longer term view on.
Speaker Change: Are there more options out there or things that you can still continue to find tunes? How do we look at that on a go-for basis?
Speaker Change: And...
Speaker Change: May be I'll take the first crack out at Nolett's Stephen in John Supplement. I think most of the margin improvement that we saw during the third quarter of your area was driven by performance within the marketing segment. I think even with the cost cutting initiatives we had in place with farming we did not see margin improvement this year. And that's because of the weakness and volume in production off the farms. I think if we had not done those cost savings initiatives we could have been in a much worse spot than we ultimately were, but at the end of the day.
Speaker Change: Our EBITDA was 4.9 million in Q3 last year, it was 4.6 million in Q3 this year from the farming segment. And that was on volumes that were dramatically lower, both for the quarter and projected for the season as a whole.
Speaker Change: So I think we're very pleased with what we were able to achieve. I think as...
Speaker Change: and I think it sets a good baseline as we move forward.
Speaker Change: As the trees recover in the crops growing through, we're going to be building off a much lower cost base, per acre, per hectare, per unit, then what we would have had previously. So I think that...
Speaker Change: I think we're in a good spot, I don't know if there's deeper cuts to be made than what we've already done within the farms, but I think we've leveled set it and put us in a position that as we grow going forward, hopefully we can keep those costs under control.
Speaker Change: I think, and that would be true, I would say, of both the avocado and the blueberry farming. I think on the marketing side, I think it had more to do with, well, you know, while some of it was leveraging investments that we'd made, I think.
Speaker Change: You know, very astute management of the bicell throughout the quarter as we moved.
Speaker Change: through different countries of origin, probably had more to do with the success than cost savings initiatives. And that was really the driver of the Quarterly Results in my opinion, and I think it it highlights.
Speaker Change: I think some of the things we were able to accomplish that we want.
Speaker Change: We believe we can still build on as we move forward.
Speaker Change: but um...
Guy: Guy, I just think that we were really pleased with the results that we were able to generate and keep in mind. I think when we have multiple countries of origins available to us and during the third quarter, we were using, we had California, we had Peru, we had Mexico.
Guy: That gives us the most flexibility in terms of being in our customers' needs and generally enables us to manage margin a little bit better than when we're constrained to a single or more limited countries of origin to get supply.
Speaker Change: God, yeah, I was, I was, I was, I was at the end
Speaker Change: I would add a little bit of color there, this is John that
John: It's been a quarter and a half for me watching the team and having responsibility for the sales and marketing side, the operational side from a logistics perspective here in the U.S. and then our procurement team as well.
John: and looking at what they've been able to accomplish, you know, Q3 was outstanding Q2 was great as well and that's a result as Bryan mentioned.
John: of...
Bryan Giles: You know, a lot of good collaboration work.
Speaker Change: New processes and tools internally to help that team come together and make really quick agile decisions as Steve mentioned earlier in his comments. And when you think about what we're doing on the mango side and the growth that we're experiencing there, I get...
Speaker Change: Even more excited than when I started in April about what these sales and marketing growth opportunities are at the company, right? So when we think about the future and we think about what we've been able to accomplish.
Speaker Change: from Sales and Marketing Perspective, not just this corridor, but what the teams have been building up to. They're run way from a sales and marketing growth perspective.
Speaker Change: I think it's in a really good spot, I think the infrastructure that Stephen team built
Speaker Change: over the years.
Speaker Change: has room in it, has run way in it for us to continue to put more product through that network and the team has proven that they can execute well even in uncertain conditions.
Speaker Change: The farming investments that the team has made over the years.
Speaker Change: are all in a great spot in regards to what they can produce.
Speaker Change: and so it's a matter of letting those things, letting some of those kinks get worked out.
Speaker Change: and what we see as we look at the next couple of years is really, I think, impressive and my focus is going to continue to be growth and I think we can really get there together as a team.
Speaker Change: I'll just summarize it. The farming thing looks good. It appears to be back. Things can change overnight, as you know, as of right now they look good and as John mentioned this mango deal is
John: Fitting very well, considering we're leveraging the assets we already have.
Speaker Change: and the demand on the fresh ripen mango is surprising.
John: Obviously, for the second time, because it's a flood opportunity ahead.
Speaker Change: All right, well guys, I appreciate it and threats on a good quarter.
Jeff Sonnek: Okay, thanks, Jeff.
Speaker Change: Thank you. We recently sent a bar question and a session on it to turn the floor back over the management. Pretty further at closing comments.
Speaker Change: Thank you very much for your interest in mission produce and we look forward to speaking with you again soon.