Mission Produce Inc (AVO) 2023 Q1 法說會逐字稿

Good afternoon, and welcome to the Mission Produce Fiscal First Quarter 2023 Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note, today's event is being recorded.

下午好，歡迎參加 Mission Produce 2023 財年第一季電話會議。所有參與者將處於僅聽模式。今天的演講結束後，將有機會提問。另請注意，今天的活動正在錄製中。

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

這次，我想將會議轉交給 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，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 earnings release, which can be found on our 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。請參閱收益報告中包含的表格，這些表格可以在我們的投資者關係網站 Investors.mission Produce.com 上找到，以了解非 GAAP 財務指標與其最直接可比較的 GAAP 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 2023 first quarter earnings call. We produced total revenue of $213.5 million and adjusted EBITDA of $2.3 million in the first quarter. This performance largely reflects the reversal of the strong pricing and low industry volumes that summarize most of 2022. As the new Mexican season kicked in during the first quarter of 2023, we were in a great position to drive volumes, and I'm pleased to report that our growth of 14% exceeded that of the industry, which is a testament to our distribution capabilities and infrastructure that supports our global customer base.

感謝您參加我們的 2023 財年第一季財報電話會議。第一季我們的總營收為 2.135 億美元，調整後 EBITDA 為 230 萬美元。這一表現在很大程度上反映了 2022 年大部分時間的強勁定價和低行業銷售的逆轉。隨著新的墨西哥季節在 2023 年第一季開始，我們處於推動銷售的有利位置，我很高興報告稱，我們的成長超過了該行業14%，這證明了我們支持全球客戶群的分銷能力和基礎設施。

However, with these higher industry volumes, the pricing environment reversed, decreasing 27%, ultimately outpacing the volume growth we had realized. Although the velocity of the price deceleration created unfavorable circumstances to drive per unit margin, the market has since found some pricing stability, which is more conducive to generating improved profitability. And looking ahead to the balance of the year, we believe conditions exist that make for a more constructive pricing outlook, as our fruit season comes online.

然而，隨著行業銷售的增加，定價環境發生了逆轉，下降了 27%，最終超過了我們實現的銷售成長。儘管價格減速的速度對推動單位利潤率造成了不利的環境，但市場此後發現了一定的定價穩定性，這更有利於提高獲利能力。展望今年剩下的時間，我們相信，隨著水果季節的到來，價格前景將變得更具建設性。

While the price volatility during the first quarter was unfavorable, we are optimistic that this new equilibrium of lower fruit pricing will ultimately drive greater consumption in the coming year compared to the depressed consumption rates that we saw last year. Furthermore, the shift to a more rational environment facilitates our ability to penetrate new growth markets such as Europe and Asia, and drive per capita consumption in these emerging markets with improved access to year-round high-quality fruit that we are uniquely able to deliver via our own and third-party sourcing capabilities and global footprint.

儘管第一季的價格波動不利，但我們樂觀地認為，與去年低迷的消費率相比，水果定價較低的新平衡最終將推動來年的消費增加。此外，向更理性的環境的轉變有助於我們滲透歐洲和亞洲等新增長市場，並通過改善我們獨特的能力提供的全年優質水果的獲取機會來推動這些新興市場的人均消費通過我們自己和第三方的採購能力和全球足跡。

But having access to diversified sourcing is only half the equation. We also need the distribution infrastructure, which is precisely where Mission shines. We remain well positioned to manage higher volumes of product this year to our unmatched global network of distribution, ripening and other value-added assets.

但獲得多元化採購只是等式的一半。我們還需要分銷基礎設施，這正是 Mission 的優勢。今年我們仍然處於有利地位，可以透過我們無與倫比的全球分銷、催熟和其他增值資產網絡管理更多的產品。

Looking ahead, our focus remains on the advancement of our global presence to investments in new global facilities such as our forward distribution center in the United Kingdom and diversification of our business by leveraging our core competencies in new and creative ways, such as blueberries. We expect that the improved stability in the avocado market, coupled with easing of cost inflation, will also allow us to generate sequential improvements in our per unit margins, albeit below what has been our historical targeted range. With this backdrop, we expect to deliver a better year of operating performance in fiscal 2023.

展望未來，我們的重點仍然是提高我們的全球影響力，投資於新的全球設施，例如我們在英國的遠期配送中心，以及透過以新的和創造性的方式利用我們的核心能力（例如藍莓）實現業務多元化。我們預計，酪梨市場穩定性的改善，加上成本通膨的緩解，也將使我們的單位利潤率得以連續改善，儘管低於我們的歷史目標範圍。在此背景下，我們預期 2023 財年將有更好的經營績效。

Our forward distribution center in the United Kingdom is expected to become operational in April. It is strategically located with direct access to major international ports and transportation networks and will strengthen Mission's expanding international footprint and optimize product distribution to our growing European customer base, with direct access to our global sourced network. This project represents a strategic investment in physical assets and people that will help us scale up quickly in this market in the coming years. We are very excited to get this facility open and elevate our ability to service this region properly with our efficient and cost-effective model.

我們位於英國的遠期配送中心預計四月投入營運。它地理位置優越，可直接通往主要國際港口和運輸網絡，將加強 Mission 不斷擴大的國際影響力，並優化向我們不斷增長的歐洲客戶群的產品分銷，並直接進入我們的全球採購網絡。該專案代表了對實體資產和人員的策略性投資，將幫助我們在未來幾年在這個市場上迅速擴大規模。我們非常高興能夠開放該設施，並透過我們高效且具有成本效益的模式提高我們為該地區提供適當服務的能力。

With respect to our blueberry business, although our first quarter performance was impacted by an unfavorable pricing environment, we continue to be optimistic about the long-term opportunity, given our access to new premium varietals, which are in the early stages of disrupting the status quo. These new varietals are not only expected to sell at a premium, but also provide us with the added benefit of extending the marketing window with an elongated harvest. While the initial goal of our entry into the market was to optimize labor management for our seasonal avocado business, our experience in operationalizing scaled production and unique high-value crops put us in a position to make a broader impact on the industry. This is a long-term play for us, but one that we think will prove to be quite valuable over time.

就我們的藍莓業務而言，儘管我們第一季的業績受到不利的定價環境的影響，但鑑於我們獲得新的優質品種的機會，我們仍然對長期機會持樂觀態度，這些品種正處於顛覆地位的早期階段現狀。這些新品種不僅有望以溢價出售，而且還為我們提供了額外的好處，即延長了收穫期，並延長了行銷窗口。雖然我們進入市場的最初目標是優化季節性酪梨業務的勞動力管理，但我們在規模化生產和獨特高價值作物方面的經驗使我們能夠對產業產生更廣泛的影響。這對我們來說是一項長期的計劃，但我們認為隨著時間的推移，它將被證明是非常有價值的。

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 first quarter performance and touch on some of the drivers within our 3 reportable segments. Then I'll provide a snapshot of our financial position and conclude with some thoughts on 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第一季的業績，並討論我們 3 個可報告部門中的一些驅動因素。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 first quarter of fiscal 2023 were essentially flat with the prior year at $213.5 million. However, note that the first quarter was advantaged by approximately $30 million due to the blueberry consolidation that took place beginning in the fiscal third quarter of last year, but isn't yet reflected in the comparable prior year first quarter period. Thus, when looking at the drivers of our lower avocado revenue within the Marketing and Distribution segment, it was largely a function of a 27% decrease in average per unit avocado sales prices, being partially offset by an increase in avocado volumes sold of 14%, both of which were driven by higher industry supply out of Mexico during the quarter.

2023 財年第一季的總營收為 2.135 億美元，與去年基本持平。然而，請注意，由於去年第三財季開始的藍莓整合，第一季獲得了約 3000 萬美元的優勢，但尚未反映在去年第一季的可比較數據中。因此，當我們審視行銷和分銷部門的酪梨收入下降的驅動因素時，發現這主要是由於每單位酪梨平均銷售價格下降了27%，但酪梨銷量增加了14%，部分抵消了這一影響。 ，這兩者都是由本季度墨西哥工業供應增加所推動的。

Gross profit increased by $8.5 million to $9 million in the first quarter, and gross profit percentage increased 400 basis points to 4.2% of revenue. As a reminder, prior year gross profit and margin percentage were negatively affected by operational challenges, created by the implementation of a new ERP system within our Marketing and Distribution segment, that led to inventory management issues and unusually large fruit disposals Normalizing for that impact in prior year, gross profit within the Marketing and Distribution segment was relatively flat year-over-year.

第一季毛利增加了 850 萬美元，達到 900 萬美元，毛利佔營收的比例增加了 400 個基點，達到 4.2%。提醒一下，上一年的毛利和利潤率受到營運挑戰的負面影響，這些挑戰是由於我們的行銷和分銷部門實施新的 ERP 系統而造成的，導致庫存管理問題和異常大量的水果處置。去年，行銷和分銷部門的毛利比去年同期相對持平。

In the current year period, higher volumes had a favorable impact on fixed cost absorption, in areas such as distribution, while the lower pricing environment limited our ability to generate per box margins on the buy-sell of avocados.

在本年度期間，銷售增加對分銷等領域的固定成本吸收產生了有利影響，而較低的定價環境限制了我們在酪梨買賣中產生每箱利潤的能力。

While we experienced some sequential improvement versus fiscal fourth quarter, per box margins remain below our targeted range. In addition, our blueberry segment experienced negative gross margin of approximately $3 million during the first quarter, as a result of weak sales prices within the European and U.S. markets, driven by strong industry supply, as well as the amortization of purchase accounting adjustments associated with the business combination of Moruga during fiscal 2022.

儘管與第四財季相比，我們經歷了一些連續改善，但每箱利潤率仍低於我們的目標範圍。此外，由於行業供應強勁，以及與採購會計調整相關的攤銷，導致歐洲和美國市場銷售價格疲軟，我們的藍莓業務第一季毛利率為負，約為 300 萬美元。Moruga 在 2022 財年的業務合併。

SG&A expense for the first quarter of fiscal 2023 increased $0.4 million or 2% compared to the same period last year, primarily due to the consolidation of Moruga, which added approximately $1.6 million of expense. Normalizing for this accounting dynamic and excluding $0.9 million of nonrecurring ERP implementation costs in the prior year period, we are pleased to see stabilization in our core SG&A expenses, which is a positive signal amid this inflationary period.

2023 財年第一季的 SG&A 費用與去年同期相比增加了 40 萬美元，即 2%，這主要是由於 Moruga 的合併增加了約 160 萬美元的費用。考慮到這一會計動態的正常化，並排除上一年期間90 萬美元的非經常性ERP 實施成本，我們很高興看到我們的核心SG&A 支出趨於穩定，這在當前通貨膨脹時期是一個積極的信號。

Adjusted net loss for the first quarter of fiscal 2023 was $5 million or $0.07 per diluted share compared to $12.2 million or $0.17 per diluted share for the same period last year. And adjusted EBITDA was $2.3 million for the first quarter of fiscal 2023, compared to a loss of $10.4 million for the same period last year, the improvement of which was primarily attributed to higher gross margin.

2023 財年第一季調整後淨虧損為 500 萬美元，或稀釋後每股 0.07 美元，去年同期為 1,220 萬美元，或稀釋後每股 0.17 美元。 2023財年第一季調整後的 EBITDA 為 230 萬美元，而去年同期虧損 1,040 萬美元，其改善主要歸功於毛利率的提高。

Turning to our segments; our Marketing and Distribution segment net sales decreased 14% to $181.8 million for the quarter, and segment adjusted EBITDA increased $12.3 million or 160% to $4.6 million. Net sales declines were due to the avocado pricing and volume dynamics previously described, while the EBITDA improvement was driven primarily by higher gross margin, due to our ERP implementation challenges in the prior year quarter.

轉向我們的細分市場；我們的行銷和分銷部門本季淨銷售額下降 14%，至 1.818 億美元，部門調整後 EBITDA 增加 1,230 萬美元，即 160%，至 460 萬美元。淨銷售額下降是由於前面描述的酪梨定價和銷售動態造成的，而 EBITDA 的改善主要是由於毛利率的提高，這是由於我們在上一季的 ERP 實施方面遇到的挑戰。

Our International Farming segment operates orchards from which substantially all fruit produced is sold to our Marketing and Distribution segment. Production from this segment is currently derived from Peru, though smaller operations are under development in other areas of Latin America.

我們的國際農業部門經營果園，幾乎所有生產的水果都出售給我們的行銷和分銷部門。該部門的生產目前來自秘魯，但拉丁美洲其他地區正在開發較小的業務。

Segment revenues and EBITDA are concentrated in the second half of our fiscal year, in alignment with the Peruvian avocado harvest season, which typically runs from April through August of each year. With this in mind, total segment sales in the International Farming segment increased 73% to $5.7 million for the quarter compared to the same period last year, due primarily to higher packing and cooling service revenue for blueberries. Segment adjusted EBITDA improved $0.9 million to a loss of $1.8 million, as a result of higher segment sales and lower SG&A expense.

部門收入和 EBITDA 集中在我們財年的下半年，與秘魯酪梨收穫季節（通常為每年 4 月至 8 月）一致。考慮到這一點，本季度國際農業部門的總銷售額與去年同期相比增長了 73%，達到 570 萬美元，這主要是由於藍莓的包裝和冷卻服務收入增加。由於部門銷售額增加和 SG&A 費用減少，部門調整後 EBITDA 減少 90 萬美元，虧損 180 萬美元。

Our blueberry segment reflects the results of Moruga's farming activities, which includes cultivating early-stage blueberry plantings and harvesting mature bushes. This product is marketed globally by our partner in the Moruga joint venture.

我們的藍莓業務反映了莫魯加農業活動的成果，其中包括培育早期藍莓種植和收穫成熟的灌木叢。該產品由我們在 Moruga 合資企業的合作夥伴在全球銷售。

Sales in our Blueberry segment are concentrated in the first and fourth quarters of our fiscal year, in alignment with the Peruvian blueberry harvest season, which typically runs from July through January. Furthermore, the blueberry harvesting season is asynchronous with the avocado harvesting season, allowing us to leverage our resources in Peru during the off-season for avocadoes.

我們的藍莓部門的銷售集中在本財年的第一和第四季度，與秘魯藍莓收穫季節（通常從七月到一月）一致。此外，藍莓收穫季節與酪梨收穫季節不同步，使我們能夠在酪梨淡季期間利用秘魯的資源。

For the first quarter, our Blueberry segment net sales were $29.8 million, and segment adjusted EBITDA was a loss of $0.5 million. While the blueberries business experienced pricing compression in the European and U.S. markets during the quarter, due to significant growth in industry volumes, we continue to be bullish on the long-term prospects for this business. We are working alongside our partner to introduce new premium varietals to the market, that also have advantages with respect to our ability to stretch the harvest, and extend the marketing window. This creates an ideal opportunity to deliver value to customers, while driving improved margins over time.

第一季度，我們的藍莓部門淨銷售額為 2,980 萬美元，部門調整後 EBITDA 虧損 50 萬美元。儘管本季藍莓業務在歐洲和美國市場經歷了價格壓縮，但由於行業銷量大幅增長，我們仍然看好該業務的長期前景。我們正在與合作夥伴合作，向市場推出新的優質品種，這些品種在我們延長收穫和延長行銷窗口的能力方面也具有優勢。這創造了一個向客戶提供價值的理想機會，同時隨著時間的推移提高利潤。

Shifting to our financial position; cash and cash equivalents were $39.2 million as of January 31, 2023, compared to $52.8 million as of October 31, 2022. Net cash used in operating activities was $1.3 million for the 3 months ended January 31st, 2023, compared to $41.4 million for the same period last year. During the current year period, our working capital position benefited from the impact of lower per unit price points. Lower prices had a favorable effect on both accounts receivable and inventory balances, and substantially offset the impact of typical working capital growth we see in the first quarter, as a result of heavy sourcing of Mexican fruit with shorter payment terms and the build of growing crops inventory within our International Farming segment for harvest and sale during the second half of our fiscal year.

轉向我們的財務狀況；截至2023 年1 月31 日，現金及現金等價物為3,920 萬美元，而截至2022 年10 月31 日為5,280 萬美元。截至2023 年1 月31 日止三個月，經營活動使用的現金淨額為130 萬美元，而截至2023 年1 月31 日止三個月為4,140 萬美元。去年同期。在本年度期間，我們的營運資金狀況受惠於單位價格點較低的影響。較低的價格對應收帳款和庫存餘額產生了有利影響，並大大抵消了我們在第一季度看到的典型營運資本增長的影響，這是由於大量採購墨西哥水果、付款期限較短以及農作物種植的結果我們國際農業部門的庫存用於在本財年下半年收穫和銷售。

Capital expenditures were $17.6 million for the 3 months ended January 31, 2023, compared to $20.9 million last year. Current year expenditures include $4.4 million of spend related to irrigation, installation and early-stage plant cultivation in our Moruga Blueberry operation. This spend was not included in capital in the prior year when the operation was not consolidated. Capital expenditures in both years included avocado orchard development, preproduction orchard maintenance and land improvements in Peru and Guatemala. In addition, capital expenditures in the first quarter of fiscal 2023 included construction costs on our new U.K. distribution facility, that is scheduled to open in spring 2023.

截至 2023 年 1 月 31 日的三個月資本支出為 1,760 萬美元，而去年為 2,090 萬美元。本年度支出包括與莫魯加藍莓業務的灌溉、安裝和早期植物種植相關的 440 萬美元支出。上一年度未合併業務時，這筆支出未計入資本。這兩年的資本支出包括秘魯和瓜地馬拉的酪梨果園開發、預生產果園維護以及土地改良。此外，2023 財年第一季的資本支出包括我們新的英國分銷設施的建設成本，該設施計劃於 2023 年春季開業。

For the full year fiscal 2023, we continue to expect CapEx related to our core avocado business to be lower than fiscal 2022. That being said, we will incur additional costs, as we ramp up development of the Moruga Blueberries project in the Olmos region of Peru.

對於2023 財年全年，我們仍然預計與核心酪梨業務相關的資本支出將低於2022 財年。話雖如此，隨著我們加大在奧爾莫斯地區莫魯加藍莓專案的開發力度，我們將產生額外成本。秘魯。

In terms of our near-term outlook, we are providing some context around our expectations for industry conditions to help inform your modeling assumptions. The industry is expecting volumes to be higher in the fiscal 2023 second quarter versus the prior year period, primarily due to continued expectations for a larger Mexican harvest. We expect the overall Mexican crop to be approximately 20% higher than the prior harvest season, with year-over-year volume increases from Mexico ticking up during the quarter. We expect the quarterly uptick to be partially offset by lower California volumes due to a later start to the harvest season.

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。該產業預計 2023 財年第二季的產量將高於去年同期，這主要是由於對墨西哥收成的持續預期。我們預計墨西哥總產量將比上一收穫季節高出約 20%，本季墨西哥產量將年增幅增加。我們預計，由於收穫季節較晚開始，加州產量下降將部分抵銷季度成長。

We believe pricing will be higher on a sequential basis, but lower on a year-over-year basis by 30% to 35% compared to the $2.04 per pound average experienced in the second quarter of fiscal 2022. This movement is primarily due to the volume dynamics noted above.

我們認為，與 2022 財年第二季度每磅 2.04 美元的平均價格相比，價格將環比上漲，但同比下降 30% 至 35%。這一變動主要是由於上面提到的體積動態。

And while the inflationary impact on our cost structure has shown signs of stabilization, we're still contending with higher expense run rates that are compromised in our ability to drive higher per unit margins and adjusted EBITDA.

儘管通膨對我們成本結構的影響已顯示出穩定的跡象，但我們仍在應對較高的費用運行率，這損害了我們提高單位利潤率和調整後 EBITDA 的能力。

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 comes from the line of Gerry Sweeney from ROTH Capital.

（操作員說明）我們的第一個問題來自羅斯資本（ROTH Capital）的格里·斯威​​尼（Gerry Sweeney）。

So lots of details there on your prepared remarks, but I'm just trying to maybe think a little bit out loud or make sure I'm thinking about this the right way. Last year, we've had different issues, anything from fruit sizes, production costs, logistics, even pricing, which, in some ways, drove or impact the consumption, sort of as we're looking at this year. It sounds as though you may be seeing, stress to the beginning of maybe a regression to the mean in terms of some normalcy around size, where you have been seeing some cost stabilization, if not mitigation, especially in logistics. If this continues -- along with volumes, if this continues, we should see EBITDAs begin to improve throughout the year. So am I sort of looking at this all correctly?

關於你準備好的發言有很多細節，但我只是想大聲思考一下，或者確保我以正確的方式思考這個問題。去年，我們遇到了不同的問題，從水果大小、生產成本、物流，甚至定價，這些問題在某種程度上推動或影響了消費，就像我們今年所看到的那樣。聽起來好像你可能會看到，在規模方面的一些常態方面，壓力可能會回歸到平均值，你已經看到了一些成本穩定，如果不是緩解的話，特別是在物流方面。如果這種情況持續下去，連同銷量，我們應該會看到 EBITDA 全年開始改善。那麼我對這一切的看法正確嗎？

Well, volume in Mexico is up, inflation appears to be easing on all fronts. We're based off of volume or built for volume, and last year, we were light on volume, with the exception of Peru. And yes, I would agree, it's feeling a lot better going into where we are. I mean there's still challenges everywhere, but some of the major things that we're seeing, that are retreating, as far as the inflationary issues.

嗯，墨西哥的交易量增加，通貨膨脹似乎在各方面都在緩解。我們以銷售量為基礎或為銷售而建，去年，除了秘魯之外，我們的銷售量很少。是的，我同意，進入我們現在的位置感覺好多了。我的意思是，到處仍然存在挑戰，但就通膨問題而言，我們看到的一些主要問題正在消退。

Yes, Gerry, I think we're seeing some positive signs as we're moving in through the early part of Q2. Volumes do feel -- they have gained some traction, seems to be more pull-through at retail than we saw for much of the first quarter. So we're seeing volumes at high levels and pricing is increasing in conjunction with that. So I think we feel good about where the industry is going through the second quarter. I think we're excited about seeing some of the other countries of origin, like California and Peru start to come on, and that will happen as we move closer to the end of the second quarter, give us more options for sourcing fruit for our customer base.

是的，格里，我認為隨著第二季初期的到來，我們看到了一些積極的跡象。銷售確實讓人感覺——它們已經獲得了一些吸引力，似乎比我們在第一季的大部分時間看到的更能推動零售業的發展。因此，我們看到銷量處於高水平，價格也隨之上漲。因此，我認為我們對該行業第二季的發展狀況感到滿意。我認為我們很高興看到其他一些原產國（例如加利福尼亞州和秘魯）開始出現，這將在我們接近第二季末時發生，為我們購買水果提供更多選擇客戶群。

Certainly, some of the inflationary pressures are starting to subside. I think when we look at kind of our farming operations, which are going to kick in later in the year. I think we've got a lot of favorable things that we're seeing right now. We're seeing production yields up for our farms. We're seeing improved size curve over what we saw last year for commercial sizes. And most importantly, we're seeing some of the freight rates that hurt us so significantly last year subside and revert back, closer to levels that we saw in 2021.

當然，一些通膨壓力正在開始消退。我認為，當我們審視我們的農業經營時，這些經營將在今年稍後開始實施。我認為我們現在看到了很多有利的事情。我們看到我們農場的產量有所提高。與去年商業尺寸相比，我們看到尺寸曲線有所改善。最重要的是，我們看到去年對我們造成嚴重傷害的一些運費有所下降並恢復，接近 2021 年的水平。

So I think certainly, a big variable is still with what the market prices will be at during the summer months, but we definitely feel better. There's a lot of positives that we see out there kind of heading towards the summer.

所以我認為，夏季市場價格的變化仍然是一個很大的變量，但我們肯定感覺好多了。我們看到夏天即將來臨，有很多正面的因素。

Got it. And this question -- I'm going to throw it out there, I'm not sure if it's really answerable, but obviously, food inflation is a hot topic we're seeing across the board and seeing some -- even my own personal consumption, maybe trading down differently when you go to supermarket. Is there a price level that you've seen or that drives consumption a little bit higher, a little bit lower, above or below a certain level. We haven't seen an inflation -- a market like this with inflation for years. I'm just curious if there's any data, any thoughts around that?

知道了。這個問題——我要把它扔在那裡，我不確定它是否真的可以回答，但顯然，食品通膨是我們全面看到的一個熱門話題，也看到了一些——甚至是我個人的問題消費，去超市時可能會以不同的方式進行降價。您是否看到過一個價格水平，或者是否會推動消費略高、略低、高於或低於某個水平。我們多年來從未見過通貨膨脹——像這樣的通貨膨脹市場。我只是好奇是否有任何數據，對此有何想法？

Yes. I mean if it gets under $1, it usually attracts a lot more people, at least on an average size. One of the issues we had in the first quarter was there was a disconnect between the market in Mexico and what the retail price was. So there was a big gap in there that slowed demand down. That has since changed, ever since Super Bowl, it has been pretty normal, I would say, or competitive, and we're seeing substantially improved volumes throughput as an industry.

是的。我的意思是，如果它的價格低於 1 美元，通常會吸引更多的人，至少在平均規模上是如此。我們第一季遇到的問題之一是墨西哥市場與零售價格之間存在脫節。因此，那裡存在很大的缺口，導致需求放緩。但自從超級盃以來，這種情況已經發生了變化，我想說，這已經很正常了，或者說是有競爭力的，而且我們看到整個行業的吞吐量大幅提高。

Mexico is picking record numbers, and it seems to be stable.

墨西哥的數字創歷史新高，而且似乎很穩定。

Price wars. Got it. I was going to say Mexico stable in general, not just price, but...

價格戰。知道了。我想說墨西哥整體穩定，不只是價格，而且...

I was just talking about the avocado price, the rest of it -- they're -- I'm not going to comment on that.

我只是在談論酪梨的價格，其餘的——他們——我不會對此發表評論。

(Operator Instructions) our next question comes from the line of Tom Palmer from JPMorgan.

（操作員說明）我們的下一個問題來自摩根大通的湯姆·帕爾默（Tom Palmer）。

Maybe we can just kick off on maybe the supply outlook as we move past the Mexico harvest. I mean, you noted California harvest coming in maybe a little bit later. But do you have any early indication in terms of how the quality, how the size of that might be coming through, and then anything on Peru for the same?

也許我們可以在墨西哥收穫結束後開始討論供應前景。我的意思是，你注意到加州的收成可能會晚一點。但是，您是否有任何早期跡象表明其品質、規模如何，以及秘魯的情況如何？

Sure. As you may know, we've been getting a lot of rain here in California, so that will help that crop size up. They like rain. They haven't seen it in a while. We're starting to pick a little bit here now. It's just kind of size picking in some areas, a lot of pruning going on and that type of thing. I really don't see much volume really until April coming out of California. We have already started our Peru harvest, although slowly this past week. Most of that's going overseas, but our crop is up about 10%, and the sizing is, as Bryan mentioned in his remarks, is a much more normal situation. So it's quite positive in those regards.

當然。如您所知，加州降雨量很大，這將有助於作物生長。他們喜歡下雨。他們已經有一段時間沒有看到它了。我們現在開始在這裡挑選一點。這只是在某些地區選擇尺寸，進行大量修剪等等。在四月之前，我真的沒有看到太多來自加州的銷售。我們已經開始了秘魯的收穫，儘管上週進展緩慢。其中大部分銷往海外，但我們的產量增加了約 10%，正如 Bryan 在演講中提到的那樣，上漿是一種更正常的情況。所以在這些方面它是相當正面的。

Okay. And then maybe just checking on the blueberry side. If I looked at some of the disclosures, right, I think this was a business that kind of fair value assumed something in the $6 million range for annual EBITDA? And it looks like for this year -- this growing season at least, it was a little under $1 million. I guess, first is, am I looking at that right, and then how abnormal was this year? I mean, is the $6 million a number that you have been seeing in recent year? And then this year, just kind of suddenly fell off and was unusual in nature, or was maybe some of the other years leading up to this one a bit challenged, too?

好的。然後也許只是檢查藍莓方面。如果我查看了一些披露的信息，對吧，我認為這是一家公允價值假設年度 EBITDA 在 600 萬美元範圍內的業務？今年——至少在這個生長季節——看起來略低於 100 萬美元。我想，首先是我看的對嗎？然後今年有多不正常？我的意思是，600萬美元是你近年來看到的數字嗎？然後今年，突然下降並且本質上是不尋常的，或者也許導致這一年的其他一些年也有點挑戰？

No. We've -- hi Tom, we certainly had some challenging years in the past. I think this one was more extreme than what we've seen. I don't think you're looking at it wrong. I think we've had years where we've generated EBITDA in the $5 million to $6 million range for that operation. I think certainly, as the business has grown, the acreage is planted, the yields have improved. We've seen volume increases over time. But the one thing that we have seen is, as the industry crop, as the (inaudible) increased, that pricing has come down over time.

不。我們——嗨，湯姆，過去我們確實經歷了一些充滿挑戰的歲月。我認為這比我們所看到的更極端。我不認為你看錯了。我認為多年來我們為該業務創造了 500 萬至 600 萬美元的 EBITDA。我認為當然，隨著業務的成長，種植面積的擴大，產量的提高。我們看到交易量隨著時間的推移而增加。但我們看到的一件事是，隨著行業產量的增加（聽不清楚），定價隨著時間的推移而下降。

I think one of the big challenges that we have right now is that some of the initial plantings we did of older varieties aren't considered kind of a premium varietal, and they're limited in terms of which markets they can make their way into. And they generally generate a lower average sales price, and when you're looking at a market, that Peru has become the largest exporter of blueberries in the world over the last couple of years, you're seeing the pressure on pricing as a result of that.

我認為我們現在面臨的一大挑戰是，我們最初種植的一些老品種並不被認為是優質品種，而且它們可以進入的市場受到限制。它們的平均銷售價格通常較低，當您觀察市場時，秘魯在過去幾年中已成為世界上最大的藍莓出口國，因此您會看到定價壓力的。

I mean, the ways that we're trying to control that going forward, I think we alluded to in the call, a lot of the -- we've replaced some of the plants we have today with newer varieties, larger blueberries with a better taste profile that should be able to get them into premium markets like China, which will generate a stronger return. On top of that, some of the new varieties through pruning, we have a better -- more options in terms of altering the harvesting window.

我的意思是，我們試圖控制未來發展的方式，我想我們在電話中提到了很多——我們已經用更新的品種、更大的藍莓取代了今天的一些植物。更好的口味應該能夠讓他們進入像中國這樣的高端市場，從而產生更強勁的回報。最重要的是，透過修剪一些新品種，我們在改變收穫窗口方面有更好的選擇。

Right now, we're hearing like north of 80% of the fruit in blueberries in Peru are harvested between October and December. And what we really want to see over time, is that season getting stretched out. So I think we're still pretty happy. I think we're happy with the outlook. We weren't happy with the results from this last year, but I think we're still bullish on where this is going to go, that the genetics that we're planting with are going to truly have a distinctive advantage over kind of the traditional varieties that most of the people -- the growers in Peru are planting or have planted. So yes, I think that our biggest driver there is to, again, get our fruit into those premium customers, so we can generate those higher returns and continue to grow yield, so we can lower our average cost and kind of stretch out that harvest window as much as we can.

目前，我們聽說秘魯 80% 的藍莓果實是在 10 月至 12 月期間收穫的。隨著時間的推移，我們真正希望看到的是這個賽季的時間越來越長。所以我想我們還是很幸福的。我認為我們對前景感到滿意。我們對去年的結果並不滿意，但我認為我們仍然看好這將走向何方，我們種植的基因將真正比其他類型的基因具有獨特的優勢。大多數人——秘魯的種植者正在種植或已經種植的傳統品種。所以，是的，我認為我們最大的推動力是再次將我們的水果帶給那些優質客戶，這樣我們就可以產生更高的回報並繼續增加產量，這樣我們就可以降低平均成本並延長收成盡可能多打開窗戶。

Our next question comes from the line of Bryan Spillane from Bank of America.

我們的下一個問題來自美國銀行的 Bryan Spillane。

So I just had one question. I guess you talked a little -- we talked about in Marketing and Distribution, and we talked a bit about maybe the profit per box or profit per carton beginning to sort of maybe normalize, I guess, is what I heard. But I guess as, when we talked a bit about this, I think, on the last earnings call, there's just other inflation, labor, transportation costs, right? So as we're all trying to sort of fixate on kind of a mean reversion, if you will, on profitability, in both the farming segment and in marketing and distribution. Like are you at a point yet where your pricing discussions have also incorporated, starting to cover some of the nonfruit costs? Or will that take more time and will that affect sort of getting back to a more normalized profit per box?

所以我只有一個問題。我想你談了一些——我們在行銷和分銷方面談過，我們談了一些關於每箱利潤或每箱利潤可能開始正常化，我想，這就是我所聽到的。但我想，當我們在上次財報電話會議上談論這個問題時，我想，還有其他通貨膨脹、勞動力、運輸成本，對嗎？因此，我們都在努力關注農業領域以及行銷和分銷領域的均值回歸，如果你願意的話，專注於盈利能力。您是否已將定價討論納入其中，開始涵蓋一些非水果成本？或者這會花費更多時間，並且會影響每箱利潤恢復到更正常的水平嗎？

Well, we're in the process actually just this week of looking at freight rates. We're kind of dragging our feet as it continued to fall, say, specifically out of Peru to either Asia, U.S. or Europe, and it seems like the longer we wait, the better they get. So we're getting close to where we could meet our expectations on costs, of something comparable to 2 years ago on freight rates out of Peru. So we're seeing some improvement in that on truck rates too, on internal truck rates across the country. It's not probably coming down as fast as the freight -- the ocean freight is, but they are continuing to creep down a little bit every week in specific lanes for sure.

嗯，實際上我們本周正在研究運費。當它繼續下降時，我們有點拖拖拉拉，特別是從秘魯到亞洲、美國或歐洲，而且似乎我們等待的時間越長，他們就越好。因此，我們已經接近能夠滿足我們對成本的預期，與兩年前從秘魯出發的運費相當。因此，我們看到全國範圍內的卡車費率也有所改善。它的下降速度可能不會像海運那麼快，但在特定航線上，它們每週都會繼續緩慢下降。

And I will say, Bryan, we have made small iterations to our pricing structure since the beginning of our fiscal year. I think we're used to freight prices moving around quite a bit in our customers. We adjust pricing regularly for that. But for some of the other value-added services we provide like ripening and distribution, that are intended to cover some of our overhead infrastructure related to those operations, we have gone back and kind of made some pricing adjustments there, acknowledging that we've seen inflationary cost pressures in those operations, and the volume growth over the last few years hasn't been there to absorb it.

我想說，布萊恩，自本財年開始以來，我們對定價結構進行了小幅迭代。我認為我們已經習慣了客戶的運費價格大幅波動。我們為此定期調整定價。但對於我們提供的其他一些增值服務，例如催熟和分銷，這些服務旨在覆蓋與這些運營相關的一些間接費用基礎設施，我們已經回去並在那裡進行了一些定價調整，承認我們已經這些業務面臨通膨成本壓力，而過去幾年的銷售成長並沒有能夠吸收這種壓力。

So I think we're pushing, I think it's something that we've been doing over the last few months. I think we're making progress in getting customers to accept it. I still don't think we're kind of outside of the range of what our competitors are doing, but we're kind of pushing ourselves, I think, kind of up to the higher end, and we expect over time that we'll likely see everyone kind of needing to do that.

所以我認為我們正在推動，我認為這是我們過去幾個月一直在做的事情。我認為我們在讓客戶接受它方面正在取得進展。我仍然不認為我們超出了競爭對手正在做的事情的範圍，但我認為我們正在推動自己達到更高端，並且我們預計隨著時間的推移，我們會「可能會看到每個人都需要這樣做。

Okay. And then actually just one additional question that there's now, I guess, the prediction that we may end up with in El Nino at some point this year. So Steve, can you just remind us again how that might affect Peru, how that might affect California and Mexico, just flipping from La Nina, which where we've been for the last couple of years to El Nino, is there anything that we should be thinking about there?

好的。然後實際上還有一個問題，我想，我們可能會在今年的某個時候最終出現厄爾尼諾現象。史蒂夫，你能否再次提醒我們這可能會如何影響秘魯，這可能會如何影響加州和墨西哥，從拉尼娜現象（過去幾年我們一直在發生）到厄爾尼諾現象，有什麼我們可以做的嗎？應該思考那裡？

Yes. I mean it's -- we've had almost twice the normal rainfall here in California already this year. And starting tonight, we're getting another couple of inches, much needed, by the way, and it actually helps the trees as long as it stops at some point, but they're very healthy. The fruit is sizing up quicker because the water -- I call it, sweet waters, rainwater doesn't have all -- some of the salts and whatnot in it. But so far, it's been a positive here. It is raining in Peru. We actually have our Peru team here this week, and -- but it's not a flooding situation. It's just raining. So it held up harvest a couple after -- mostly in the afternoon.

是的。我的意思是，今年加州的降雨量幾乎是正常降雨量的兩倍。從今晚開始，我們將獲得另外幾英寸，這是非常需要的，順便說一句，只要它在某個時刻停止，它實際上對樹木有幫助，但它們非常健康。水果的判斷速度更快，因為水——我稱之為甜水，雨水並不含有全部——一些鹽之類的東西。但到目前為止，這是積極的。秘魯正在下雨。事實上，我們的秘魯團隊本週在這裡，但這並不是洪水氾濫的情況。剛剛下雨。因此，收穫推遲了幾天——主要是在下午。

So as long as it stays where it is there, it doesn't wash the bridges out and whatnot, we're good, and I don't think there's any prediction of that from what I know today.

因此，只要它留在原來的地方，它不會沖毀橋樑之類的，我們就很好，而且我認為根據我今天所知道的情況，沒有任何預測。

Thank you. Ladies and gentlemen, at this time, I am showing no further questions. I would like to end the question-and-answer session and turn the conference call back over to Steve Barnard, CEO, for any closing remarks.

謝謝。女士們先生們，此時此刻，我不再提出任何問題。我想結束問答環節，並將電話會議轉回執行長史蒂夫·巴納德 (Steve Barnard) 發表結束語。

Thank you very much for your interest in Mission Produce, and we look forward to speaking to you again soon.

非常感謝您對 Mission Produce 的興趣，我們期待很快再次與您交談。

Thank you, sir. Ladies and gentlemen, that concludes today's conference call. We do thank you for attending. You may now disconnect your lines.

謝謝你，先生。女士們先生們，今天的電話會議到此結束。我們非常感謝您的出席。現在您可以斷開線路。