Mission Produce Inc (AVO) 2022 Q2 法說會逐字稿

Good afternoon, and welcome to the Mission Produce Fiscal Second Quarter 2022 Conference Call. (Operator Instructions) Please also note today's event is being recorded.

下午好，歡迎參加 Mission Produce 2022 年第二季財年電話會議。 （操作員說明）也請注意今天的活動正在錄製中。

At this time, I'd like to turn the conference call over to Jeff Sonnek, Investor Relations at ICR. Sir, please go ahead.

現在，我想將電話會議轉給 ICR 投資者關係部門的 Jeff Sonnek。先生，請繼續。

Thank you, and good afternoon. Today's presentation will be hosted by Steve Barnard, Chief Executive Officer; and Bryan Giles, Chief Financial Officer.

謝謝你，下午好。今天的演講將由首席執行官 Steve Barnard 主持；和財務長 Bryan Giles。

The 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. 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.

今天電話會議中的評論和隨附的演示文稿包含 1995 年《私人證券訴訟改革法案》安全港條款含義內的前瞻性陳述。除歷史事實陳述外的所有陳述均被視為前瞻性陳述。這些陳述是基於管理層目前的預期和信念以及有關未來事件的一些假設。此類前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與前瞻性陳述中討論的結果有重大差異。其中一些風險和不確定性在該公司向美國證券交易委員會提交的文件中進行了識別和討論。

We'll also refer to certain non-GAAP financial measures today. Please refer to the tables included in the press release which can be found on the Investor Relations website, investors.missionproduce.com, for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures.

今天我們也將提及某些非公認會計準則財務指標。請參閱新聞稿中包含的表格，這些表格可在投資者關係網站 Investors.mission Produce.com 上找到，以了解非公認會計原則財務指標與其最直接可比較的公認會計原則指標的對帳情況。

With that, I'd now like to turn the call over to Steve Barnard, CEO.

現在，我想將電話轉給執行長史蒂夫·巴納德 (Steve Barnard)。

Thank you for joining us for our fiscal 2022 second quarter earnings call. I'm pleased with our fiscal second quarter performance, which demonstrated our ability to get the business back on track quickly following the temporary operational challenges associated with our ERP implementation.

感謝您參加我們的 2022 財年第二季財報電話會議。我對我們第二財季的業績感到滿意，這表明我們有能力在經歷與 ERP 實施相關的臨時營運挑戰後使業務迅速回到正軌。

Total revenue for the second quarter of fiscal 2022 increased 18% to $278.1 million and we generated $9.2 million in adjusted EBITDA. Revenue growth was driven by a continued strong pricing environment that is being supported by resilient demand amid lower industry supply. More importantly, however, it was our ability to drive a recovery in per-box margins, which have returned to the high end of normal historical ranges.

2022 財年第二季的總營收成長 18%，達到 2.781 億美元，調整後 EBITDA 為 920 萬美元。收入成長是由持續強勁的定價環境推動的，而行業供應較低的情況下，需求的彈性支撐了定價環境。然而，更重要的是，我們有能力推動每箱利潤率的復甦，該利潤率已回到正常歷史範圍的高端。

From a supply perspective, the ongoing inconsistency of Mexican supply continued during the fiscal second quarter. The industry continued to experience challenges with abnormal grading and sizing of harvested fruit. For context, approximately 76% of the U.S. distributed volume was Mexican-sourced fruit in the second quarter. We utilized alternate sources to fill demand which were primarily focused on California, which produced a larger crop this year as well as production from Colombia and Chile.

從供應角度來看，第二財季墨西哥供應持續不穩定。該行業繼續面臨收穫水果分級和尺寸異常的挑戰。就背景而言，第二季美國分銷量中約 76% 是源自墨西哥的水果。我們利用替代來源來滿足主要集中在加州的需求，該州今年的產量較大，以及哥倫比亞和智利的產量。

While Mission's global footprint provides sourcing advantages relative to the industry as a whole, there are not enough ample sources of fruit available at this time of year to meaningfully offset the impact of the Mexican supply shortages. This is an example of why Mission has been proactive in investing in vertically integrated global supply sources to fill these supply gaps and reduce the volatility.

雖然 Mission 的全球足跡提供了相對於整個行業的採購優勢，但每年這個時候沒有足夠的水果來源來有效抵消墨西哥供應短缺的影響。這就是為什麼 Mission 一直積極投資於垂直整合的全球供應源，以填補這些供應缺口並減少波動性的一個例子。

The backdrop of constrained supply, coupled with consistent demand, continued to create sustained upward pressure on pricing through the first half of this fiscal year where prices were approximately 50% higher versus the prior year. Despite these higher prices, demand in the core U.S. markets have proven to be resilient and largely inelastic.

在供應受限的背景下，加上持續的需求，本財年上半年繼續對價格造成持續上行壓力，價格較上年上漲約 50%。儘管價格上漲，但美國核心市場的需求已被證明具有彈性，基本上缺乏彈性。

We think this speaks to the broader health and wellness trends that underpin the avocado industry, elevating the avocado to a must-have staple in many households. In fact, in the second quarter, we distributed approximately the same amount of volume as we did 2 years ago in the second quarter of 2020 during the onset of the pandemic, yet prices are 24% higher over the same period, demonstrating the value of avocados and consumers' diets.

我們認為這反映了支撐酪梨行業的更廣泛的健康和保健趨勢，使酪梨成為許多家庭的必備主食。事實上，在第二季度，我們分發的數量與兩年前 2020 年第二季度大流行爆發期間的數量大致相同，但同期價格卻上漲了 24%，這證明了酪梨和消費者的飲食。

While this dynamic isn't as strong in less-developed markets due to the lower levels of consumption per capita in those international markets, we believe we are especially well suited to address the opportunity to foster similarly resilient consumption trends in new global markets.

雖然由於欠發達市場的人均消費水準較低，這種動力在這些國際市場中並不那麼強勁，但我們相信，我們特別適合抓住機會，在新的全球市場中培養類似的彈性消費趨勢。

Our ability to drive growth in these new international markets comes back to being able to provide year-round supply. Mission has played a critical role in creating greater access to avocados at your neighborhood retailer and favorite restaurant through our consistent year-round supply and value-added services. This requires foresight and a constant focus on continuously assessing opportunities to optimize our sourcing capabilities with third-party growers as well as investing in our own farms to ensure that we can control the quality and supply that our customers have come to expect.

我們推動這些新國際市場成長的能力取決於能夠提供全年供應。透過我們全年一致的供應和增值服務，使命在讓您附近的零售商和最喜歡的餐廳更容易獲得酪梨方面發揮了關鍵作用。這需要遠見卓識並持續關注不斷評估機會，以優化我們與第三方種植者的採購能力，並投資我們自己的農場，以確保我們能夠控制客戶期望的品質和供應。

Our strategy to invest in vertical integration has proven to be an unparalleled competitive advantage. Specifically, our own Peruvian production gives us reliable access to fruit to meet customer needs on a scale and at volumes that only Mission can deliver. We are well positioned to leverage these capabilities in the second half of our fiscal year when our owned Peruvian product comes online and typically contributes to a significant step-up in adjusted EBITDA.

事實證明，我們投資於垂直整合的策略具有無與倫比的競爭優勢。具體來說，我們自己的秘魯生產使我們能夠可靠地獲得水果，以滿足只有 Mission 才能提供的規模和數量的客戶需求。當我們擁有的秘魯產品上線時，我們已準備好在本財年下半年充分利用這些能力，並且通常有助於調整後 EBITDA 的大幅提升。

The Peruvian growing season has been very productive, and we are expecting solid yields from our crop. However, we think it is prudent to expect some price rationalization in connection with the improving supply conditions later this fiscal year. While we expect to generate sales growth in the second half of the fiscal year, the inflationary environment is expected to mitigate some of the operating leverage that we typically expect out of our own International Farming segment.

秘魯的生長季節非常豐產，我們預計我們的作物將獲得穩定的產量。然而，我們認為，隨著本財年稍後供應狀況的改善，預計價格會出現一定程度的合理化是謹慎的做法。雖然我們預計本財年下半年的銷售將實現成長，但通膨環境預計將減輕我們通常預期的國際農業部門的一些營運槓桿。

In summary, strategically investing in our own production to ensure year-round global sourcing is the key to maintaining long-term organic growth and is a key component of our long-term growth plans, and Mission continues to be in a great position. Although this year's abnormal supply environment has created some challenges, we are focused on our long-term strategy of generating consistent growth and enhancing market share by increasing capabilities and capacities while continuing to adapt to industry dynamics. Mission has a long track record of generating growth, and we believe we have an undisputed advantage with our global network of value-added assets that will drive sustainable long-term shareholder value.

總之，對我們自己的生產進行策略性投資以確保全年全球採購是保持長期有機成長的關鍵，也是我們長期成長計畫的關鍵組成部分，而 Mission 繼續處於有利地位。儘管今年異常的供應環境帶來了一些挑戰，但我們專注於長期策略，透過提高能力和產能，同時繼續適應行業動態，實現持續成長和提高市場份額。 Mission 在創造成長方面有著悠久的記錄，我們相信我們的全球增值資產網絡擁有無可爭議的優勢，將推動可持續的長期股東價值。

With that, I'll pass the call over to our CFO, Bryan Giles, for his financial commentary.

接下來，我會將電話轉給我們的財務長 Bryan Giles，聽取他的財務評論。

Thank you, Steve, and good afternoon to everyone on the call. I'll start with a brief review of our fiscal second quarter performance ended April 30, 2022, and touch on some of the drivers within our 2 operating segments. Then I'll provide a snapshot of our financial position and conclude with some thoughts on some of the current industry conditions that we are seeing.

謝謝你，史蒂夫，祝所有參加電話會議的人下午好。我將首先簡要回顧我們截至 2022 年 4 月 30 日的第二財季業績，並談談我們兩個營運部門的一些驅動因素。然後，我將簡要介紹我們的財務狀況，並最後對我們所看到的當前行業狀況提出一些想法。

Total revenue for the second quarter of fiscal 2022 increased 18% to $278.1 million as compared to $234.7 million for the same period last year. Growth was driven by a 44% increase in average per unit avocado sales prices due to lower industry supply out of Mexico following a smaller Mexican harvest as well as inflationary pressures. Partially offsetting price gains was a 19% decrease in avocado volumes sold, which again was primarily driven by the smaller industry harvest.

2022 財年第二季的總營收成長 18%，達到 2.781 億美元，去年同期為 2.347 億美元。成長的推動因素是每單位酪梨平均銷售價格上漲 44%，原因是墨西哥收成減少以及通膨壓力導致墨西哥產業供應減少。酪梨銷量下降 19%，部分抵消了價格上漲，這同樣主要是由於行業收成減少所致。

Second quarter gross profit decreased $7.3 million or 27% compared to the same period last year to $19.8 million, and gross profit percentage decreased 440 basis points to 7.1% of revenue. The decreases were primarily driven by the impact of lower avocado volumes sold in our Marketing and Distribution segment and its related impact on fixed cost absorption. In addition, we experienced gross profit decreases in the International Farming segment due to the timing of cost incurred and impact of pricing at early-stage mango farms. The lower gross profit percentage was driven by higher per unit sales prices. Margin is primarily managed on a per unit basis in our Marketing and Distribution segment, which can lead to significant movement in gross profit percentage when sales prices fluctuate.

第二季毛利為 1,980 萬美元，較去年同期下降 730 萬美元，或 27%，毛利佔營收的比例下降 440 個基點，為 7.1%。下降的主要原因是我們的行銷和分銷部門銷售的酪梨數量減少及其對固定成本吸收的相關影響。此外，由於早期芒果農場的成本發生時間和定價影響，我們國際農業部門的毛利下降。毛利率較低是由於單位銷售價格較高所致。我們的行銷和分銷部門的利潤率主要按單位管理，當銷售價格波動時，這可能會導致毛利率發生重大變化。

SG&A expense for the second quarter increased $2.4 million to $18.7 million due primarily to non-capitalizable costs associated with the implementation of our new ERP system in our Marketing and Distribution segment, higher employee-related costs driven by increased head count and labor inflation and higher travel expenses as COVID-related travel restrictions have eased.

第二季的 SG&A 費用增加了 240 萬美元，達到 1,870 萬美元，主要是由於與行銷和分銷部門實施新 ERP 系統相關的不可資本化成本、員工人數增加和勞動力通膨以及更高的員工相關成本增加隨著新冠肺炎相關旅行限制的放鬆，旅行費用也隨之減少。

Net income for the second quarter was $2.4 million or $0.03 per diluted share compared to net income of $7.4 million or $0.10 per diluted share for the same period last year. Adjusted net income was $2.6 million or $0.04 per diluted share compared to $8.7 million or $0.12 per diluted share for the same period last year.

第二季淨利為 240 萬美元，即稀釋後每股收益 0.03 美元，而去年同期淨利為 740 萬美元，即稀釋後每股收益 0.10 美元。調整後淨利為 260 萬美元，即稀釋後每股收益 0.04 美元，而去年同期為 870 萬美元，即稀釋後每股收益 0.12 美元。

Adjusted EBITDA was $9.2 million for the second quarter of fiscal 2022 compared to $16.3 million for the same period last year driven primarily by lower avocado volumes sold and higher SG&A costs, as described previously.

如前所述，2022 財年第二季調整後 EBITDA 為 920 萬美元，而去年同期為 1,630 萬美元，這主要是由於酪梨銷量下降和 SG&A 成本上升所致。

In terms of our segments, our Marketing and Distribution segment net sales increased 18% to $273.7 million for the quarter. And segment adjusted EBITDA was $11.7 million, a 28% decrease from prior year. The drivers for the Marketing and Distribution segment are similar to those that I described for the consolidated results.

就我們的部門而言，我們的行銷和分銷部門本季淨銷售額成長了 18%，達到 2.737 億美元。部門調整後 EBITDA 為 1,170 萬美元，較上年下降 28%。行銷和分銷部門的驅動因素與我為綜合結果所描述的驅動因素類似。

Our International Farming segment primarily represents our owned farms that we manage in Peru. As a reminder, the avocado harvest season for our Peruvian farms typically runs from April through August of each year. And as a result, you see the International Farming segment emerge in the third and fourth quarter and contribute to adjusted EBITDA in a significant fashion.

我們的國際農業部門主要代表我們在秘魯管理的自有農場。請注意，我們秘魯農場的酪梨收穫季節通常是每年四月至八月。因此，您會看到國際農業部門在第三季和第四季出現，並以顯著的方式為調整後的 EBITDA 做出貢獻。

Furthermore, I'd highlight the influence of our mango operation on our segment financial results as the timing of the mango harvest is concentrated in the fiscal second quarter, and as a result, mangos have a more pronounced impact on segment financial performance during this time frame. For context, we operate approximately 300 hectares of planted mangos in Peru that are largely in an early stage of production, with approximately 60% of those acres producing fruit. This compares to the approximately 3,000 productive hectares of avocados that we operate in Peru. While small in relative terms, our presence in the mango category has several operational synergies that are important for our broader growth ambitions. Chief among these is supporting our labor pool with year-round work and leveraging our existing infrastructure investments.

此外，我想強調我們的芒果業務對我們部門財務業績的影響，因為芒果收穫的時間集中在第二財季，因此，在此期間芒果對部門財務業績的影響更加明顯框架。就背景而言，我們在秘魯經營約 300 公頃的芒果種植園，這些芒果大部分處於生產的早期階段，其中約 60% 的面積生產水果。相較之下，我們在秘魯經營的酪梨種植面積約為 3,000 公頃。雖然相對而言規模較小，但我們在芒果類別中的存在具有多種營運協同效應，這對於我們更廣泛的成長目標非常重要。其中最主要的是透過全年工作來支持我們的勞動力資源並利用我們現有的基礎設施投資。

So with this in mind, for the second quarter, International Farming segment net sales increased $2.1 million or 91% due to higher mango harvest volumes as well as higher third-party service revenue compared to the same period last year.

因此，考慮到這一點，由於芒果收穫量增加以及第三方服務收入與去年同期相比，第二季度國際農業部門的淨銷售額增加了 210 萬美元，即 91%。

Segment adjusted EBITDA was negative $2.5 million primarily due to the timing of costs incurred and impact of pricing at early-stage mango farms. Yields are commensurate with the stage of maturity of our mango production. And as this improves over time and volumes increase, we would expect a corresponding improvement in adjusted EBITDA generation.

部門調整後 EBITDA 為負 250 萬美元，主要是由於早期芒果農場發生成本的時間和定價的影響。產量與我們芒果生產的成熟階段相稱。隨著時間的推移和銷售量的增加，這種情況會有所改善，我們預計調整後的 EBITDA 生成也會相應改善。

Shifting to our financial position. Cash and cash equivalents were $21.4 million as of April 30, 2022, compared to $84.5 million as of October 31, 2021. Net cash used in operating activities was $37 million for the first half of fiscal 2022 compared to $20.2 million in the same period last year. Company's operating cash flows are seasonal in nature and can be temporarily influenced by working capital shifts, resulting from varying payment terms to growers in different source regions and prevailing market prices. In addition, the company is building its growing crops inventory in its International Farming segment during the first half of the year for ultimate harvest and sales that will occur during the second half of the fiscal year.

轉向我們的財務狀況。截至2022 年4 月30 日，現金及現金等價物為2,140 萬美元，而截至2021 年10 月31 日為8,450 萬美元。2022 財年上半年經營活動使用的現金淨額為3,700 萬美元，而上年同期為2,020 萬美元年。公司的經營現金流本質上是季節性的，並且可能會暫時受到營運資金變化的影響，這是由於不同來源地區種植者的付款條件和現行市場價格不同而造成的。此外，該公司正在今年上半年在其國際農業部門建立其種植作物庫存，以便在本財年下半年實現最終收穫和銷售。

The $16.8 million change versus prior year reflects the net loss for the first half of the year, partially offset by favorable net change in working capital. Within working capital, favorable changes in grower payables were partially offset by unfavorable changes in inventory. Changes in grower payables were due to higher fruit prices compared to prior year. Changes in inventory were due to increased per-box value of fruit on hand in North America and higher growing crop inventory in Peru driven by inflationary pressures on farming costs and additional productive acreage compared to last year.

與前一年相比，1,680 萬美元的變化反映了今年上半年的淨虧損，部分被營運資本的有利淨變化所抵銷。在營運資本內，種植者應付帳款的有利變化被庫存的不利變化部分抵消。種植者應付款項的變化是由於水果價格較上年上漲。庫存變化的原因是北美現有水果每箱價值增加，以及農業成本通膨壓力和生產面積較去年增加而導致秘魯作物庫存增加。

Capital expenditures were $29.1 million for the first half of fiscal 2022 compared to $46.8 million in the same period last year. Current year expenditures were concentrated in the purchase of farmland in Peru as well as land improvement and orchard developments in Peru and Guatemala. As a reminder, in the year ago period, we had incremental capital expenditures associated with the Laredo, Texas facility that is now operational.

2022 財年上半年的資本支出為 2,910 萬美元，去年同期為 4,680 萬美元。本年度的支出主要集中在秘魯購買農地以及秘魯和瓜地馬拉的土地改良和果園開發。提醒一下，去年同期，我們與現已投入營運的德州拉雷多工廠相關的資本支出有所增加。

In terms of our near-term outlook, we are providing some context around our expectations for industry conditions to help inform your modeling assumptions.

就我們的近期前景而言，我們將提供一些有關我們對行業狀況的預期的背景信息，以幫助您了解建模假設。

The industry is expecting third quarter volumes to increase sequentially but remain approximately 10% to 15% lower versus the prior year period primarily due to ongoing supply constraints in Mexico that are not expected to fully alleviate until the fiscal fourth quarter. More specifically, we expect to see some increased volume from California and early Peruvian crop to help fill the void as Mexico transitions from its primary to its off-bloom crop. The general expectation is for volumes to then increase further in fiscal fourth quarter as Peru will be in full swing and Mexico's off-bloom crop starts to hit the market.

該行業預計第三季銷量將環比增長，但仍比去年同期下降約 10% 至 15%，這主要是由於墨西哥持續的供應限制預計要到第四財季才能完全緩解。更具體地說，我們預計加州和秘魯早​​期作物的產量會增加，以幫助填補墨西哥從初花作物過渡到休花作物時的空白。普遍預期第四財季產量將進一步增加，因為秘魯將全面展開，而墨西哥的花期作物開始推出市場。

With this expectation for improving volumes, we believe that the pricing environment should rationalize in turn through the balance of this fiscal year.

鑑於銷售量增加的預期，我們認為定價環境應透過本財年的平衡而逐步合理化。

We continue to battle the same inflationary pressures that have been well documented. These include freight, labor and packaging costs, among others, which, in a lower volume environment, creates additional headwinds to our ability to drive higher per unit margins and adjusted EBITDA.

我們繼續與有據可查的通膨壓力作鬥爭。其中包括貨運、勞動力和包裝成本等，在銷售較低的環境中，這些成本會為我們提高單位利潤率和調整後 EBITDA 的能力帶來額外的阻力。

That concludes our prepared remarks. Operator, now over to you. Please open the call to Q&A.

我們準備好的演講到此結束。接線員，現在交給你了。請打開問答電話。

(Operator Instructions) Our first question is from Ben Bienvenu with Stephens.

（操作員說明）我們的第一個問題來自 Ben Bienvenu 和 Stephens。

It's Jim Salera stepping in for Ben today. If I can ask a couple of questions on the supply environment. So as the new supply comes online from Peru and California, can you maybe talk about the matchup with pricing? Is that going to be enough to alleviate prices in the third quarter? Or is that something that isn't really going to fully satisfy the demand until more into the fourth quarter?

今天由吉姆·薩萊拉 (Jim Salera) 代替本。我可以問幾個關於供應環境的問題嗎？那麼，隨著秘魯和加州的新供應上線，您能談談定價方面的匹配嗎？這足以緩解第三季的價格嗎？或者說，直到第四季才能真正完全滿足需求？

I would say, at the earliest, it will be the end of the third quarter, primarily in the fourth quarter. Mexico really won't get started, from what we can tell, until probably the second or third week of July. And by the time it gets in the system, you're looking at, realistically, probably the 1st of August or so. Peru could affect that to some degree, but the demand is pretty good. So I would think it will have to take Mexico to change the thing dramatically.

我想說，最早是第三季末，主要是第四季。據我們所知，墨西哥可能要到七月的第二週或第三週才能開始。當它進入系統時，實際上，您看到的可能是 8 月 1 日左右。秘魯可能會在一定程度上影響這一點，但需求相當不錯。所以我認為墨西哥必須做出巨大改變。

The one thing we didn't have in Peru that we will have in Q3 is some meaningful Peruvian volume. So I think while volume would be up sequentially, it will still be down year-over-year. I'd expect a higher pricing environment than we saw a year ago at this time but should start to trend lower from what we've seen over the last few months.

我們在秘魯沒有的一件事是我們在第三季將擁有的一些有意義的秘魯銷售。因此，我認為雖然成交量會比上季上升，但仍將年減。我預計此時的定價環境會比一年前更高，但與過去幾個月相比應該會開始走低。

Perfect. I was just going to ask, in terms of the reliability of the supply, specifically the fruit health itself, in Peru and California versus what you guys have been seeing in Mexico, is there any concerns around that?

完美的。我只是想問，就供應的可靠性而言，特別是秘魯和加州的水果健康本身，與你們在墨西哥看到的情況相比，是否有任何擔憂？

Well, Peru has got a pretty good supply this year. What we're bringing in here is mostly contracted, but there will be more supplies coming as the weeks go on. They're pretty much going full blast down there now. But by the time it gets up here, it will be 3, 4 weeks from now. But that will help. California has really peaked where it is today on volume. It will start slowing down here probably towards the end of the month. Not stopping, but slowing down. And then Mexico, from what we know, they're going to start with a new crop, they say early July, but it appears like it could be delayed a little bit.

嗯，秘魯今年的供應量相當不錯。我們帶來的貨物大部分是合約貨物，但隨著幾週的推移，將會有更多的供應。他們現在在那裡幾乎全力以赴。但當它到達這裡時，已經是三、四個星期之後了。但這會有幫助。加州的銷售確實達到了今天的頂峰。它可能會在本月底開始放緩。不是停下來，而是放慢速度。然後墨西哥，據我們所知，他們將在七月初開始種植新作物，但看起來可能會推遲一點。

Okay. And then if I could sneak in one more question on the demand side. Have you guys seen any consumer demand, also like a price umbrella, where once the fruit prices hit a certain point, they either swap out of the category or the volume sees decrement not related to supply but just related to consumer pricing power, specifically maybe at some of the QSR restaurants like Chipotle?

好的。然後我是否可以再問一個關於需求方面的問題。你們有沒有看到任何消費者需求，也像價格傘一樣，一旦水果價格達到某個點，它們要么退出該類別，要么數量減少，與供應無關，而只與消費者定價能力有關，具體來說可能是在 Chipotle 等 QSR 餐廳？

Well, it's out there. I think the tide keeps rising from what we're seeing. I mean, with these prices, the industry is still moving 55 million pounds a week or so between all sources. Compared to this situation years ago, the stability is really impressive on what's happening. I mean 55 million pounds a week, even 5 to 7 years ago, we would not be seeing these prices. So I think the overall category is very strong. There's a limit. We just don't know where it is yet. It keeps moving.

嗯，它就在那裡。我認為從我們所看到的情況來看，潮流正在不斷上漲。我的意思是，按照這些價格，該行業每週仍在所有來源之間轉移約 5500 萬英鎊。與幾年前的情況相比，現在所發生的事情的穩定性確實令人印象深刻。我的意思是每週 5500 萬英鎊，即使在 5 到 7 年前，我們也不會看到這些價格。所以我認為整體類別非常強大。有一個限制。我們只是還不知道它在哪裡。它一直在移動。

Yes. I mean I would say that this is a pretty good example of the laws of supply and demand at work. As supply decreases, price increases correspondingly until those lines intersect. And I think that's what we've seen happen. I think the demand curve has proven to be steeper, particularly in the U.S. market, than maybe people had thought. I mean with pricing rising at a much faster rate, or at a much faster rate than volume has declined, I think we view that as a positive that demand is strong out there. We certainly don't want it to remain in this environment for an extended period of time because then I believe that there could be concerns over long term, how it could impact consumption over the long haul. But I don't believe over the short term that that's going to have a meaningful impact. Again, the hope is get volume back on track relatively soon, see some alleviation on where the price is at today. And I think we'll be happy with the market at that point.

是的。我想說的是，這是供需法則發揮作用的一個很好的例子。隨著供應減少，價格相應上漲，直到這些線相交。我認為這就是我們所看到的情況。我認為事實證明，需求曲線比人們想像的要陡峭，尤其是在美國市場。我的意思是，隨著價格上漲的速度遠遠快於銷售下降的速度，我認為我們認為需求強勁是正面的。我們當然不希望它在這種環境下停留很長一段時間，因為我相信，從長遠來看，可能會擔心它會如何影響長期的消費。但我認為短期內這不會產生有意義的影響。再次強調，希望成交量能相對較快地回到正軌，並看到今天的價格有所緩解。我認為屆時我們會對市場感到滿意。

Okay. Great. If I could sneak in one more question on the inflation front. Just anything that you guys are seeing that might lead to, I'll say, if not a return to normal, at least a sequential slowing in kind of the inflation rate. Or is it this is a step-up that's pretty much locked in and this is the normal moving forward?

好的。偉大的。如果我能再問一個有關通貨膨脹的問題。我想說，你們所看到的任何事情都可能導致通貨膨脹率即使不能恢復正常，至少也會連續放緩。或者這是一個幾乎鎖定的進步，這是正常的前進？

I think some of it's going to come back. One of the things that's going to probably have a more meaningful impact the second half of the year is the inflation on our farming product. I think that things around ocean transport are much higher than what it was last year. At this time, some of the controlled atmosphere containers, we're seeing costs that are close to double what we experienced in last year's market. I don't think those are going to remain at that level. I think that the capacity constraints will get resolved over time. Hopefully, fuel prices will settle in at a lower level, and those will come back.

我想其中一些會回來。今年下半年可能產生更有意義影響的事情之一是我們農產品的通貨膨脹。我認為海運方面的情況比去年高很多。目前，一些氣調容器的成本幾乎是去年市場的兩倍。我認為這些不會保持在那個水平。我認為隨著時間的推移，容量限制將會得到解決。希望燃油價格能夠穩定在較低水平，然後價格就會回升。

I think some of the other things, we look at our farming operations with fertilizers, other types of raw materials that go into the crop, we've seen inflationary pressures there as well. Those may stick a little bit longer. I think it's more difficult. I think that may have a little more to do with some of the other things that are at play in the world right now. But I think we're hopeful that at a minimum, they stabilize, if not revert, over time.

我認為其他一些事情，我們用化肥和其他類型的農作物原料來觀察我們的農業經營，我們也看到了那裡的通貨膨脹壓力。這些可能會堅持更長一點。我認為這更困難。我認為這可能與目前世界上正在發生的一些其他事情有更多關係。但我認為我們希望，隨著時間的推移，它們至少會穩定下來（如果不是恢復的話）。

Our next question is from Tom Palmer with JPMorgan.

我們的下一個問題來自摩根大通的湯姆·帕爾默。

Maybe first, just a check-in on the Peru harvest. I guess we're getting to the point where you're starting to get some visibility on supply. It sounds like you're counting on that to make up some of the shortfall from other regions like Mexico. But maybe a little more specific, I mean are you expecting the harvest to be larger than last year? Just anything on the size that we should expect from your company-owned farming operations.

也許首先，檢查一下秘魯的收成。我想我們已經到了這樣一個階段：你開始對供應有一定的了解。聽起來您指望通過這一點來彌補墨西哥等其他地區的部分缺口。但也許更具體一點，我的意思是你預期收成會比去年更大嗎？就是我們對你們公司擁有的農業經營所期望的任何規模。

Yes, our particular crop, Tom, is the largest we've ever had just because the trees are getting bigger and we continue to plant year after year in different locations, targeting specific harvest periods. But yes, we're going to have the most we've ever had by, I don't know, 5% or 10%, probably, increase. That is going to be spread around the world. But most of it will come to the U.S., which will help build the supply to the offsets from California and Mexico. So we're in a great position and leading that space as far as being vertically integrated around the world.

是的，湯姆，我們的特殊作物是我們有史以來最大的，因為樹木越來越大，我們繼續在不同的地點年復一年地種植，針對特定的收穫期。但是，是的，我們將迎來有史以來最多的成長，我不知道，可能是 5% 或 10% 的成長。這將傳播到世界各地。但其中大部分將來到美國，這將有助於增加加州和墨西哥抵消的供應。因此，我們處於有利地位，並且在全球垂直整合方面處於領先地位。

Great to hear. And then switching gears a little bit. You'd mentioned per-box margins back to the high end of historic ranges. I just wanted to make sure I understood this math. Because you also noted some added costs, right? I think shrink's probably still a little bit high, you've got freight, fixed cost to leverage as Laredo ramps up. So when you talk about per-box margins, is that an all-in number when we look, for instance, at the Marketing and Distribution segment? Or is that before considering some of these maybe costs that are spread across the volume base?

很高興聽到。然後稍微切換一下。您提到每箱利潤回到歷史範圍的高端。我只是想確保我理解這個數學。因為您還注意到一些額外的成本，對吧？我認為收縮可能仍然有點高，隨著拉雷多的增加，你有運費和固定成本來槓桿。因此，當您談論每盒利潤時，當我們考慮行銷和分銷領域時，這是一個總數字嗎？還是在考慮分佈在整個銷售基礎上的一些可能成本之前？

Tom, it's an all-in number that we're referring to. So you could argue that with the fact that we are carrying higher costs in certain areas, that the margin that we're making on the fruit is even better than it's been historically because we're coming in with a blended rate that's at the high end despite those pressures. I think that we've told people in the past a goal of somewhere between $3.50 to $4 a box margin. That's where we try to operate. And yes, we came out of a quarter where we were operating kind of just above the high end of that.

湯姆，我們指的是一個總的數字。因此，您可能會說，由於我們在某些​​領域的成本較高，我們在水果上賺取的利潤甚至比歷史上更好，因為我們的混合利率處於高位。儘管有這些壓力，還是結束了。我認為我們過去曾告訴人們每盒利潤在 3.50 美元到 4 美元之間的目標。這就是我們嘗試運作的地方。是的，我們的季度業績略高於該季度的高端。

I think as we move forward, our goal is to kind of stay within that range. I don't see anything in the near term that we're looking at right now that would cause us to think that that's not achievable.

我認為，隨著我們前進，我們的目標是保持在這個範圍內。我認為短期內我們現在正在考慮的任何事情都不會導致我們認為這是不可能實現的。

Our next question is from Bryan Spillane with Bank of America.

我們的下一個問題來自美國銀行的 Bryan Spillane。

Maybe just a follow-up on Tom's question, and we've fielded this a few times, just getting back to a normalized unit profit or profit per box. In terms of just the most important driver to that, is it really just going to come down to having supply and supply coming from the most optimal places? So we're kind of really going to be looking at what the harvest is like in Mexico, I guess, next year. Or are there other that we should be thinking of? But just simplistically, like what's the biggest driver, I guess, to kind of get us back to those historic norms?

也許只是湯姆問題的後續行動，我們已經回答過幾次這個問題，只是回到標準化的單位利潤或每箱利潤。就最重要的驅動因素而言，這真的只是取決於供應和供應來自最優化的地方嗎？因此，我想，明年我們真的會關注墨西哥的收成情況。或者有其他我們應該考慮的嗎？但簡單地說，我想，讓我們回到那些歷史規範的最大推手是什麼？

Well, supply, having enough supply to meet demand, demand continues to grow. As I mentioned a second ago, this Peruvian crop is growing every year. Our numbers are up about 20% and still planting in areas to kind of fill the gaps. So who knows where this demand is going? If you look at the prices today and the fact that we're moving 55 million pounds a week, there's a lot of room there. I mean if this thing comes down to a little lower level, I don't know, it could be 65 million pounds a week at a pretty steady pace going forward in the next year just looking at the history.

那麼，供應，有足夠的供應來滿足需求，需求就會持續成長。正如我剛才提到的，秘魯的作物每年都在成長。我們的數量增加了約 20%，並且仍在一些地區種植以填補空白。那麼誰知道這種需求會流向哪裡呢？如果你看看今天的價格以及我們每週轉移 5500 萬英鎊的事實，你會發現那裡還有很大的空間。我的意思是，如果這件事降到更低的水平，我不知道，從歷史來看，明年可能會以相當穩定的速度達到每週 6500 萬英鎊。

I'd add on top of that, Bryan, that having sources of fruit from multiple markets at any given time, the variety of options on countries of origin helps us lever one off the other. I think when we're heavily dependent on one supply market and that market gets upside down on supply or it's not there, it creates challenges for us. So I think as we transition into times of the year when we have multiple countries of origin available, that flexibility certainly helps us with price and enable us to kind of balance out those different markets and lever them off one another.

布萊恩，除此之外，我還要補充一點，在任何特定時間都擁有來自多個市場的水果來源，原產國的多種選擇有助於我們相互利用。我認為，當我們嚴重依賴一個供應市場，而該市場因供應而出現顛倒或不存在時，就會給我們帶來挑戰。因此，我認為，當我們進入一年中擁有多個原產國的時期時，這種靈活性肯定有助於我們調整價格，並使我們能夠平衡這些不同的市場並相互利用。

And I guess, just if we're thinking about the shorter term, maybe the next 12 months, from a supply perspective, is Mexico the most important kind of variable as we sort of look at trying to have more supply?

我想，如果我們考慮短期，也許是未來 12 個月，從供應角度來看，墨西哥是我們試圖增加供應的最重要的變數嗎？

Well, over a period of the next 12 months, definitely. I mean they were generally 72% to 73% of the U.S. consumption. The Peruvian product we'll have here until September, late September, maybe October, there'll be an overlap, of course. And then California, we'll have some product here for the next 60 days with volume or maybe a little longer. So we've got options in the short term.

嗯，肯定是在接下來的 12 個月內。我的意思是它們通常占美國消費量的 72% 到 73%。秘魯產品我們會一直供應到九月、九月底，也許十月，當然會有重疊。然後是加州，我們將在接下來的 60 天內或更長的時間內提供一些產品。所以我們在短期內有選擇。

Yes. And then just one last question for me, given how there's just stretching the source product maybe from different places or make up some of the gaps that we've seen, has it affected the quality of the fruit that is especially in, I guess, supermarkets? Are you selling more? Or is the industry selling more maybe lower quality fruit than it normally would just because, at this point, it's just a matter of having fruit at all versus being able to separate grade or quality?

是的。然後對我來說最後一個問題，考慮到如何從不同的地方延伸源產品或彌補我們所看到的一些差距，它是否影響了水果的質量，我想，特別是，超級市場？你賣得更多嗎？或者，該行業銷售的水果數量比平時多，甚至質量可能較低，只是因為在這一點上，這只是擁有水果與能夠區分等級或質量的問題？

I would say, to a degree, you're right. I mean this Mexican crop has been drugged out over the past couple of months where some of the maturity is high and I think the shelf life is a little lower than the other, say, Peru or California. So it kind of depends on what product you're getting and what the source is. At this time of the year, I mean it changes as we move forward. They're going to start with new crop here in about a month or so. So just it's a moving target on the source and the timing of the year.

我想說，在某種程度上，你是對的。我的意思是，這種墨西哥作物在過去幾個月裡已經被下了藥，其中一些成熟度很高，我認為保質期比其他作物（例如秘魯或加州）要短一些。因此，這在某種程度上取決於您獲得的產品是什麼以及來源是什麼。每年的這個時候，我的意思是，隨著我們的前進，它會改變。他們將在大約一個月左右的時間內開始種植新作物。因此，這只是一年中來源和時間的一個不斷變化的目標。

Our next question is from Gerry Sweeney with ROTH Capital.

我們的下一個問題來自羅斯資本 (ROTH Capital) 的格里·斯威​​尼 (Gerry Sweeney)。

A question just on the Peru fruits. Looking at previous years, it sort of falls 40-60 Q3, Q4. Is that the way you see the volume kind of falling out again this year?

關於秘魯水果的問題。看看往年，第三季、第四季下降了 40-60 倍。您是否認為今年銷量再次下降？

I think that it might be a little bit lower than that this year. I think that for Q3 versus Q4, certainly, we would like to harvest as soon as possible. But some of that is dictated by the maturity of the fruit on the tree. The harvest started a few weeks later than I think we really would have liked to begin the harvest this year. So I think that it won't be dramatically different from that 40-60 split. But if I had to estimate, I'd say I'd take the under on that, that we'll likely have a little bit less of a sell-through in Q3 this year. I will note that last year, we had about 36% of our crop sell-through in Q3. So I think that something like that is probably a reasonable target.

我覺得今年可能會低一點。我認為對於第三季度和第四季度，我們當然希望盡快收穫。但其中一些是由樹上果實的成熟度決定的。收穫開始的時間比我認為我們今年真正希望開始收穫的時間晚了幾週。所以我認為這與 40-60 的分配不會有太大不同。但如果我必須估計的話，我會說我會接受這一點，今年第三季的銷售量可能會減少。我要指出的是，去年第三季我們的農作物售出率約為 36%。所以我認為這樣的目標可能是個合理的目標。

Got you. And then you mentioned maybe price rationalizing in the fourth quarter. And this is probably not an easy question. But obviously, I mean, it's off-bloom harvest out of Mexico and then you had the Peru fruit coming in. What does rational pricing mean? I mean California is out, Mexico is off-bloom and then, obviously, Peru is coming through but not nearly as big as Mexico. How much of a change in pricing could we see?

明白你了。然後您提到第四季度價格可能會合理化。這可能不是一個簡單的問題。但顯然，我的意思是，這是墨西哥的花期收成，然後秘魯的水果進來了。合理定價意味著什麼？我的意思是，加州已經退出，墨西哥已經不再開花，然後，顯然，秘魯正在崛起，但規模沒有墨西哥那麼大。我們可以看到定價有多大變動？

Well, I haven't been downstairs this morning, but it's been in the $60 range for Mexican fruit and/or California fruit per lug at source, which is extremely high. Retail has been pretty high to match that. Peru's coming in, those are mostly contracts, so they're a little bit lower, but they're stable throughout the season. And I think once we get substantial supply coming out of Mexico, you'll see a reduction in the price, but I think it will be higher than it has been. In other words, it's going to back off a little bit. But as we see this demand continuing to grow, the floor keeps rising. So in the past, if we were in the low 30s for an FOB price, that was pretty average, I would say, it could be a little higher than that as an average.

好吧，今天早上我還沒下樓，但墨西哥水果和/或加州水果的源頭價格一直在 60 美元左右，這個價格非常高。零售業的成長率相當高，與之相符。秘魯隊進來了，這些大部分都是合同，所以價格有點低，但整個賽季都很穩定。我認為一旦我們從墨西哥獲得大量供應，您就會看到價格下降，但我認為價格會比以前更高。換句話說，它會有所回落。但隨著我們看到這種需求持續成長，下限不斷上升。因此，在過去，如果我們的 FOB 價格在 30 多美元左右，那是相當平均的，我想說，它可能會比平均價格略高一些。

Got you. And then on the inflation side, I mean, to some degree, you're a price taker, I guess, but is there any ability to pass on some of the prices? Or does some of this get baked into the final sales price? And then anything you can do to sort of mitigate it or manage it.

明白你了。然後在通貨膨脹方面，我的意思是，在某種程度上，我猜你是一個價格接受者，但是有能力傳遞一些價格嗎？或者其中一些會被納入最終銷售價格嗎？然後你可以採取任何措施來減輕或管理它。

Gerry, I think on the marketing distribution side of our business, the advantage we have there is that we have 2 variables. We can either recover inflation by pushing a lower cost back to our fruit supplier or we can drive it via a higher price with our customer. I think depending on the circumstance, we could utilize either one of those strategies or sometimes both. So I think with a third-party, that gives us more flexibility. With the farming side, we don't have that on the supply side. It really is just the price that we have to work with.

格里，我認為在我們業務的營銷分銷方面，我們的優勢在於我們有兩個變數。我們可以透過向水果供應商降低成本來恢復通貨膨脹，也可以透過向客戶提供更高的價格來推動通貨膨脹。我認為根據具體情況，我們可以使用其中一種策略，有時也可以同時使用兩種策略。所以我認為有了第三方，這會為我們帶來更大的靈活性。在農業方面，我們在供應方面沒有這樣的能力。這確實是我們必須面對的價格。

And while inflation may impact the floor price at which avocados will be sold, the true price that we end up settling in at is more driven off supply and demand than it is on the inflationary pressures. So I think that in a market like we're in right now, we've got inflationary pressures on the cost side. And while many of the parties that are marketing avocados are dealing with that, the pricing, in some ways, is independent, to some extent, of that unless if it were to get to a very low level where you're actually losing money. And we're not anywhere near those levels right now.

雖然通膨可能會影響酪梨的銷售底價，但我們最終確定的真實價格更受供需關係的影響，而不是通膨壓力的影響。所以我認為，在我們現在所處的市場中，成本方面面臨通膨壓力。雖然許多酪梨行銷方正在處理這個問題，但定價在某種程度上是獨立的，除非它達到非常低的水平，你實際上會賠錢。而我們現在還遠遠未達到這些水準。

Got it. Okay. And then just ERP, obviously, a big issue before. Were there any sort of short-term costs or transitionary costs in this quarter from the ERP side that we're not going to see either maybe move into the third quarter or sort of exit in the third or fourth quarter, et cetera?

知道了。好的。然後就是 ERP，顯然這是之前的一個大問題。本季 ERP 方面是否存在任何短期成本或過渡成本，我們可能不會看到這些成本或轉移到第三季度，也不會在第三或第四季度退出，等等？

We're seeing some costs on the SG&A side related to our non-capitalizable ERP costs that are still there related to consulting and support, and they're trending down. But I don't believe, or we don't believe, that there was a meaningful impact within our gross margin as a result of operational issues or inefficiencies that were created by ERP during the quarter.

我們看到 SG&A 方面的一些成本與我們不可資本化的 ERP 成本相關，這些成本仍然與諮詢和支援相關，而且呈下降趨勢。但我不相信，或者我們不相信，本季 ERP 造成的營運問題或效率低下會對我們的毛利率產生有意義的影響。

Ladies and gentlemen, at this time, there are no further questions. I'd like to end the question-and-answer session and turn the conference back to Mr. Barnard for any closing comments.

女士們、先生們，現在沒有其他問題了。我想結束問答環節，並將會議轉回巴納德先生徵求結束語。

Well, thank you for your interest in Mission Produce and we look forward to speaking to you again soon. Thank you for your time.

好的，感謝您對 Mission Produce 的興趣，我們期待很快再次與您交談。感謝您的時間。

Thank you. This concludes today's conference call. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。