Mission Produce, Inc. · NASDAQ:AVO
Mission Produce — Investor Day (June 2023)
43 slides from Mission Produce's investor day presentation, Jun 26, 2023
Slide 1: Investor Day Presentation
June 26, 2023 Investor Day Presentation © 2023 Mission Produce, Inc. The MISSION & TOWER DESIGN® and MISSION PRODUCE™ are trademarks of Mission Produce, Inc. All rights reserved.
Slide 2: Notice to and Undertaking by Recipients
Notice to and Undertaking by Recipients This presentation does not purport to be all-inclusive or to contain all of the information that the Recipient may require. The Company expressly disclaims any and all liability relating to or resulting from the use of this presentation. This presentation may
Slide 3: Today's Participants
Bryan Giles Chief Financial Officer Juan Wiesner President, Central and South America Steve Barnard Chief Executive Officer • Seasoned industry pioneers and veterans, many of whom have 30+ years of industry experience • On-the-ground support and expertise in key locations • Foster an entrepreneurial
Slide 4: Company History
Company History 44
Slide 5: Company History Timeline
opens its largest North ‘American forward distribution center in Laredo, Texas Grupo. Mission purchases the remaining 50% interest in Peruvian Joint Venture, establishing vertical integration MISSION EARNS. $1B IN REVENUE Mission opens 228k sq. ft. packing, distribution and 0 i ripening facility in
Slide 6: Strategic Overview
6 Strategic Overview 6
Slide 7: Mission Produce: At a Glance
Mission Produce: At a Glance A global leader in the worldwide avocado business with four decades of investments in people, technology, and infrastructure ➤ Marketing & Distribution ➤Year-Round Supply ➤ Vertical Integration ➤ 13 Forward Distribution Centers Globally ➤ Large, Addressable Market ➤ Econ
Slide 8: A Long Track Record of Growth
A Long Track Record of Growth $1.05 billion FY 2022 Revenue 19 World-Class Facilities Across 9 Countries (1) ~19% FY 2022 Avocados Sourced from Owned Production 9.0% ’11-’22 Avocado Volume CAGR 9.8% ’11-’22 Revenue CAGR FY 2022 Avocado Volume 584mm lbs. Source: Management and other publicly availabl
Slide 9: Strategic Priorities Overview
Strategic Priorities Overview 9
Slide 10: Supporting Tailwinds Driving Market Growth
Supporting Tailwinds Driving Market Growth 1. Consumer Interest in Healthy Eating: • With more than 20 vitamins and minerals, avocados are associated with heart health, weight health, and skin health. (1) • More than half (55%) of consumers are willing to pay a premium for food that contributes to t
Slide 11: Global Avocado Consumption is Poised to Grow
(1) Rabobank. Global Growth Far from Over. May 2023. (2) CIRAD. FruiTrop Magazine May-June 2023. Global Avocado Consumption is Poised to Grow 2022 Global Per Capita Consumption (1,2) Mission is driving year-round availability in international markets to meet growing demand International Growth Oppor
Slide 12: The Mission Advantage
The Mission Advantage: Key Relationships: Our relationships extend across thousands of avocado growers and regions globally Time and Capital Investments: Capital investment, ripening and logistics expertise, and significant lead time from seed to fruit Economies of Scale: Company-owned ripening, ful
Slide 13: Global Sourcing Overview
13 Global Sourcing Overview 13
Slide 14: Diversified Sourcing & Year-Round Supply
Diversified Sourcing & Year-Round Supply 14
Slide 15: Multiple-Source Strategy Drives Year-Round Availability
Multiple-Source Strategy Drives Year-Round Availability to Meet Global Demand 15
Slide 16: Extensive Infrastructure With State-of-the-Art Facilities
Extensive Infrastructure With State-of-the-Art Facilities Packhouse Advantages ➤ High-definition grading cameras ➤ State-of-the-art washing, sorting, packing, and bagging line ➤ Industry-leading post-harvest practices (cold chain) ➤ Ocean container plug-ins Forward Distribution and Ripening Center A
Slide 17: International Farming Overview
17 International Farming Overview 17
Slide 18: Peruvian Operations Overview
Peruvian Operations Overview ➤ >$350M investment to-date ➤ ~5,400 jobs(1) ➤ 1 packing house ➤ ~5,600 total hectares Total Hectares by Region & Commodity(2) 18 (1) FY 2022 permanent and seasonal employees. (2) As of June 2023.
Slide 19: Owned Operations: Cultivated Farms Annual Growth
62 1,091 1,725 1,804 2,626 2,628 2,628 2,643 2,998 3,362 3,718 3,931 197 197 300 300 300 300 300 6 82 106 144 232 335 353 390 459 62 1,091 1,725 1,810 2,708 2,930 2,968 3,175 3,633 4,015 4,408 4,690 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 19 475 1,788 1,831 2,458 2,803 2,998 3,17
Slide 20: Owned Agricultural Operations in Hectares
20 Owned Agricultural Operations in Hectares* *Information reported at December 31st of each year. Blueberries: Hectares Hectares Mangos: Avocados: 97 197 300 300 197 197 300 203 103 197 197 300 300 300 300 300 0 50 100 150 200 250 300 350 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 21: Owned Agricultural Operations: Exportable Volume
664 1,392 3,485 3,655 -500 500 150 0 250 0 350 0 450 0 550 0 650 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 21 Owned Agricultural Operations: Exportable Volume 3,460 7,778 9,927 33,698 37,354 28,465 33,440 46,455 53,215 0 10, 000 20, 000 30, 000 40, 000 50, 000 60, 000 70, 000 80, 000 90, 000 10
Slide 22: Guatemalan Operation: Farm Growth
22 Guatemalan Operation: Farm Growth Total Hectares 193198 298 545 198 298 738 0 100 200 300 400 500 600 700 800 900 100 0 2021 2022 2023* * Estimated at December 31st, 20 3. In Production Developed CAPEX: ➤ 738 Hectares ➤ ~$31.8M to-date 22
Slide 23: Colombian Operation: Copaltas Hectares by Year
57 250 575 549 593 575 606 843 0 200 400 600 800 100 0 120 0 140 0 2021 2022 2023* Colombian Operation: Copaltas Hectares by Year ➤ 50/50 Joint Venture between Mission Produce and Cartama ➤ Total Investment(1) of ~$20M to-date In Production Developed (1) The values have been re-expressed from Colomb
Slide 24: Agricultural Production: General Monthly Distribution by Crop
0 200 0 400 0 600 0 800 0 100 00 120 00 140 00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Agricultural Production: General Monthly Distribution by Crop Mangos Avocados - Peru Blueberries Avocados - Guatemala 24
Slide 25: Owned Operations: Avocado Packing Volume Growth
Avocados – Owned Fruit Avocados – 3rd-Party Fruit Blueberries – Owned Fruit Blueberries – 3rd-party Fruit Owned Operations: Avocado Packing Volume Growth 13,244 14,238 56,367 47,712 45,691 58,083 86,178 101,539 0 20,000 40,000 60,000 80,000 100,000 120,000 2015 2016 2017 2018 2019 2020 2021 2022 0 2
Slide 26: Owned Operations: Exported Container Growth
Owned Operations: Exported Container Growth of Mission Fruit 346 460 1,578 1,632 1,450 1,597 2,207 2,516 21 87 211 244 270 393 507 528 35 65 156 163 367 547 1,789 1,876 1,755 2,055 2,870 3,207 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2015 2016 2017 2018 2019 2020 2021 2022 0 500 1000 1500 200
Slide 27: Market Development & Industry Demand
27 Market Development & Industry Demand 27
Slide 28: Strategic Choices to Drive Profitable Growth
Strategic Choices to Drive Profitable Growth In which markets do we compete? Retail, Food Service, Wholesale, and International How is our customer base selected? We are focused on growing volume with margin-accretive customers across channels What differentiates us from our competitors? We are the
Slide 29: Channel Segmentation Strategy Based on Growth and Profitability
Channel Segmentation Strategy Based on Growth and Profitability We are focused on growing Retail, Food Service, Wholesale, and International Channels ➤ Leading our customer & partner relationships through our core values: FIRST (Fun, Innovative, Reliable, Successful, Trustworthy) ➤ Competitively pos
Slide 30: Preferred Supplier with Custom Programs & Value-Added Services
Mission is Positioned as a Preferred Supplier by Offering Custom Programs & Value-Added Services We provide customers with leading operations and industry insights geared toward driving sales • Ripening to customer specifications • Logistics management (especially trucking) • Hands-on training to fa
Slide 31: Customer Case Studies
National Retailer Case Study: Growing Volume Foodservice Customer Case Study: Supply Diversification Mission is positioned to grow customer volume and distribution ➤ Strategically located distribution centers ➤ Surety of supply ➤ Peruvian program benefits ➤ Consistent quality ➤ Value-added ripening,
Slide 32: Financial Performance
32 Financial Performance 32
Slide 33: Historical Revenue / Volume Growth
Historical Revenue / Volume Growth 2011 - 2022 CAGR: ➤Revenue: +9.8% ➤Volume +9.0% Attractive industry tailwinds combined with visionary leadership driving strong long-term growth 33 Note: Data provided as of fiscal year end October 31, 2022. $376 $401 $445 $490 $544 $600 $843 $860 $883 $862 $892 $1
Slide 34: 2022 Revenue Overview
2022 Revenue Overview ➤ Focus on avocados ➤ Ancillary revenues derived from synergistic products ➤ North America concentration ➤ FY22 international sales negatively impacted by supply constraints – significant opportunities exist with consistent supply Note: Data provided as of fiscal year end Octob
Slide 35: Historical Quarterly Financial Performance
Revenue ($mm) Gross Profit ($mm) Adjusted EBITDA(3) ($mm) Note: Fiscal year ended October 31. (1) % Annual Contribution calculated as the respective quarter’s amount/total annual amount for the respective fiscal year. (2) The Blueberries segment was consolidated prospectively on May 1, 2022. (3) Non
Slide 36: Variables Impacting Business Segment Financial Performance
➤Price/Volume – supply/demand ➤Per unit margins - fruit buy/sell ➤Not directly correlated with pricing ➤ L/T relationships, not contracts ➤ S/T pricing commitments with customers ➤ Supplier pricing model ➤ Fixed price – MX, CA ➤ Consignment – All else ➤Value-added services ➤ Leverage of infrastructu
Slide 37: Capital Expenditures and Investment
(1) Includes 2018 buyout of remaining 50% interest in Peru farming JV. (2) As of fiscal year end October 31, 2022. $ in millions. (3) The Blueberries segment was consolidated prospectively on May 1, 2022. $38.0 $43.5 $9.1 7.2 $29.3 $29.9 $45.2 $18.6 $6.9 $9.1 $67.3 $73.4 $61.2 $34.9 FY2020 FY2021 FY
Slide 38: Long-term Financial Outlook
Long-term Financial Outlook ➤Bullish outlook on avocado consumption driving global revenue growth, with volume and market share growth translating to improved leverage of distribution and farming investments ➤Year-over-year variability to be expected in our industry – growth unlikely to come in stea
Slide 39: Closing Comments
39 Closing Comments 39
Slide 40: Q&A
40 Q&A 40
Slide 41: Appendix
41 Appendix 41
Slide 42: Non-GAAP Financial Measures
This presentation contains the non-GAAP financial measure “Adjusted EBITDA” and “Adjusted EBITDA Margin.” Management believes these measures provide useful information for analyzing the underlying business results. These measures are not in accordance with, nor are they a substitute for or superior
Slide 43: Adjusted EBITDA Reconciliation
aa21 ‘Net income (loss) a4 (448)$ 234.S 188 S 225 74S 1845 1695 (134)$ 24$ 1795 (418) Interest expense 2a 23 at 12 os 08 10 10 09 aa 15 20 Provision (benefit) for income taxes 07 35 62 46 73 2a 59 58 (25) os 54 - Depreciation and amortization"! 34 37 55 55 36 40 61 67 45 56 7A 76 Equity method incom