Mission Produce Sees Q3 Capital Expenditures Now Expected In The Range Of $40M-$45M

Outlook

For the third quarter of fiscal year 2024, the Company is providing the following industry outlooks that will drive performance:

• Warmer temperatures correlated with El Niño have persisted through the development of our 2024 Peruvian avocado crop. The Company expects these warmer temperatures to negatively affect harvest yields for the second half of the fiscal year, reducing exportable volumes from owned farms to be more than 50% lower than recent seasons. The Company expects the decrease in volume will negatively impact absorption of fixed costs at its Peruvian farms. Though lower volumes are expected to generally support higher pricing, the Company does not expect higher pricing levels to offset the negative impact of volume decreases on gross profit for the International Farming segment for the fiscal year.
• Overall industry volumes are expected to decline by 10-15% in the fiscal 2024 third quarter versus the prior year period, primarily due to an earlier conclusion to the 2023/2024 Mexican harvest season and a weaker Peruvian harvest outlook.
• Pricing is expected to be relatively flat on a sequential basis, which translates to an increase of approximately 15% on a year-over-year basis as compared to the $1.36 per pound average experienced in third quarter of fiscal 2023.
• Capital expenditures now expected in the range of $40 to $45 million, reflecting an acceleration of planned investment in the Company's blueberry joint venture to support near-term growth utilizing operating cash flows generated during the strong 2023/2024 harvest season.