Mission Produce (AVO) 9 Sep 222022 Q3 Earnings call transcript

Good afternoon, and welcome to the Mission Produce Fiscal Third Quarter 2022 Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Jeff Sonnek, Investor Relations at ICR. Sir, Please go ahead.

Thank you, and good afternoon. hosted Chief Barnard, Financial be and Executive will Giles, Bryan Officer. presentation by Chief Steve Officer; Today's The comments safe during of contain the forward-looking today's Securities XXXX. call and within Private meaning the the of Reform the Litigation harbor of statements provisions Act accompanying presentation All statements forward-looking than other historical facts statements considered are of statements. of on events. future based management's beliefs are concerning expectations statements and well assumptions as These current as a number materially actual from unknown statements results risks known and results are to could that forward-looking the differ Such in and cause the discussed forward-looking subject uncertainties to statements.

the company's identified tables Some the with of uncertainties refer measures and non-GAAP We'll Relations reconciliations these Steve over financial directly to Investor for to Barnard, now that, refer most included SEC. risks their call on financial to in GAAP to and today. are discussed investors.missionproduce.com, of certain Please measures. comparable non-GAAP the in the earnings With to CEO. the like I'd website, be can the also which filings measures release turn found

for the supported us in industry $XX.X growth earnings revenue amid fiscal We our $XXX.X call. which joining quarter, backdrop. EBITDA supply for XXXX strength a strong quarter XX% adjusted for and in third we produced million to million, by generated sustained third was of lower you pricing Thank

incurring of market Laredo high are that unit we large Mexican global Additionally, diversified where the historical absorption from which and from of the end facility. quarter, in our the our capacity headwinds at our even margins remained normal flexibility per and performed volatility well third in source new sourcing we have the experienced periods ranges platform, demonstrates

facility over this and foot place North in American to the network great in point, about support our feel the Laredo to the capacity markets. Laredo, we in drive mega flexibility we throughout XXX,XXX that growth provide great have We've efficiency made future anticipated past to years. several including substantial the On investments we us volume over feel next the continue square several will years, our about the

overhead year, utilization facility. the an move which past While been improve volume marketers this third-party peppers leverage are as which logistics a more investments, the and bell To provides absorbing fixed those growers in incremental that through have we've we largely we of costs stabilized, those largest is us announced rates tomatoes, and earlier North with with week, opportunity and over to they of end, partnership the and long-term one America. cucumbers NatureSweet,

create United through with mega of avocado size we imports, Eastern facility's additional produce and generate offer drive business, Midwest designed to approximately forward Mission Laredo revenue services and that's advanced XX% hub technology in Given as a major our facility the that XPL the and and regions to are of leverage the volume will to streamline of for to Texas, volume products. center distribution positioned is XPL operations for scale size destined complementary Laredo state-of-the-art our uniquely synergistic Southwest, the serve our Mexican We and States. This and importers. logistical for partnerships U.S. deal their handle efficiencies leveraging

abruptly speaking and to partners continued lower scale, supply more during allows the of Mexican of inconsistency especially in harvest facility, utilization of benefit those third enabling While expected. what ended supply. than to times us from this maximize business we avocado model the And the ongoing supply, quarter, economies of the of

other Peru source positioned and were very our volume context, quarter. well emerging Nonetheless, Colombia. of For to distributed fiscal markets sources only fruit global gap especially U.S. X/X Mexican as with the alternate and production was the fill California, strong, we in own which such about third such as was

the global we in our market. we but respect the the in of Mexican Michoacan's Mission the It and XXXX certification fruit XX% for some opportunity down year, well, by for over to this there third growth following generating sophisticated prior production, Jalisco volume with was import organized annual XX% leveraging vast fruit's to over growers majority offset markets. entry which volume a coming Jalisco advantages, source and compared global quarter, and largest season, long-term about XX% more a sourcing by service capitalized own. other shortage relative other to younger into the the which, that of the an packers on of our we we USDA this As to production but forward presents region established much markets, basis, With one recent Mexico, to are looking export is region the size having on growth, growing of that operators. XX% opportunity know is plantations in to U.S. with the a the presence regional immediately from

fruit fill also additional to supply complementing and the and This as from including the ripe from and our customers. go through Aside nicely. high-quality U.S. Jalisco alternate go volume provides large gaps existing benefits, facility bag an of the market, can other will our to product we season, already Laredo our serving straight important very source the Michoacan during where

basis, to there this available of While shortages. high resulted the of advantages industry prior to on provides Mission's offset are core relative persistently encouraged a to elevating year. footprint trends staple the must-have avocado fruit This we versus year-to-date been impact not XX% higher year, demand avocado pricing the global a households. to continuing and the by these sources and as sourcing were enough higher meaningfully whole, in Despite industry, are health which many the market. supply the the Mexican intense, which Food in a resilient remain ample underpin prices, speaks the approximately that consume wellness yet consumers has in inflation broader regular the U.S. to avocados

market ensure focus critical the optimize to growth. the Mission constant investing Our This consumption as is in the consistent a opportunities development. new assessing growers to It that we I'm supply. versatile can control growth long-term and our our played the to industry-leading XX-year great markets and market have the farms and our globally share To is operational plans. that as come to we drive end, foresight expand a our upon access Tim key sourcing large enterprises. with continuously is development in goal for commercial industry's supporting that on is this year-round excited and have to new with has growth executive our own capabilities catalyst third-party strategic customers required supply in quality well new global Bulow, With growth August. Chief results-driven and our his career to working appreciation team commerce to join a executive expect. confident multinational through expertise, President has will our Officer, who Tim I'm meet and is long-term Operating and Tim's of for a role and

vertical proven advantage. strategy to unparalleled to has in an Our as integration be competitive invest

production that Peruvian on to only our fruit deliver. reliable Mission customer meet can own Specifically, us needs and at to gives access volumes a scale

of In distributed production. was total third fact, XX% volume quarter the in from our approximately our owned

farming XX% volume Peruvian fiscal season, we are more and achieved approximately expect to produce we Our this what in than XXXX. operations well performing

with sold strategic harvest, long-term the transitional season's services we harvest fruit third fourth of Reliable fiscal end Mission the a demonstrates to distributed season to programs to being to competitors. over value-added In retailers primarily have access quarter. with advantages of be great and As and continues assets the our Mexican that our customers. and ability foodservice to in provide position in about the customers, quarter, the during we of with balance summary, the the our of X/X the the own commit strategic supply

We are our long-term strategy while to focused capacities, market and and increasing dynamics. of generating enhancing by consistent capabilities adapt industry share to continuing on growth

for what's our an that undisputed ahead, long-term sustainable value. call have we and over about the believe Bryan advantage that, will CFO, With his financial to excited are drive commentary. I'll pass shareholder Giles, We

we and everyone and XX% snapshot the start increased segments. increase Total Mexico industry drivers XX% by good avocado the on X a average some well on Growth XXst, following of fiscal prices quarter as to thoughts some of Then touch XXXX, our Thank our third I'll Mexican due of fiscal driven a you, was and Steve, ended unit pressures. inflationary of of position smaller call. reportable supply current a brief with the quarter in afternoon a within provide that third per million. review are July our conditions $XXX.X financial sales XXXX some seeing. out to harvest industry for performance to of revenue the lower on conclude I'll with as

in resiliency volumes As relative smaller to X%, of a for this lower the period, industry higher decreased price amid the was points demonstrating U.S. markets during export Domestic sold of avocados harvest, the rate a declined market. result avocado which demand volumes XX%.

basis profit lower unit implementation the year was million labor profit sales of of and can fixed our dynamics Farming primarily significant prices, the by in profit with in Marketing new prior or higher increase absorption stock-based discuss per in lower per driven segment. and Marketing profit revenue. impact to sold sales in third proportion volumes for and Third X% was driven is margin $XX.X $X.X quarter sales and employee-related to in later as as well flat lower million lead related inflation managed margins in to decreased the Distribution and value. segment year, remarks. was prices associated was cost costs, higher The quarter compensation to compared system movement last percentage unit gross margin by quarter. a the increased our costs our to XXX during XX.X% Strength fluctuate. primarily gross period gross due points per segment, profit million, by of in on driven $X.X Distribution primarily gross per with the same as non-capitalizable SG&A gross the $XX.X Distribution in increased Margin represents avocado impact Marketing and International by profit essentially segment. the higher the ERP partially higher million and to of when my these basis offset expense on The unit our a its which percentage Gross unit percentage I'll

adjusted third Similarly, insurance a realized fiscal $X.XX an $X.X in was consolidation period. for million XXXX third to of inflation blueberry per which recorded we essentially I'll on was with The influences income the consistent a fiscal increase net labor that the XXXX $XX.X on drove impact impact to $X.XX year-over-year diluted account to with period, being that million in as Additionally, XXXX. SG&A increased speak the which sold. for million by of moment. Net share. the year-over-year prior versus quarter changes. third similar from partially the which finally, the quarter $XX.X income to approximately non-comparable million third gross a the prior of EBITDA lower items or volumes just share, normalized note operation prior the drivers item the year the gain Adjusted margin I'd those $XX.X fiscal the at I unit The gross offset quarter Moruga, the basis And was of $X prior our of or increase X% year. avocado we for quarter in diluted primary of per is per for the that with settlement the million of flat year approximate margins year Peruvian are higher X% that isolates increase, noted, of a

a segment which a I farms in presentation in is an to a In On our controlling reportable interest. we in which our segment XX% interest a equity XXXX, third of for titled we Xst, blueberries Peru segments, terms includes obtained point want which Blueberries. Moruga, own that now out May entity change

those prospectively and segment the International into for adjusted the the was With for not increase described our the was this that, Prior net or that an Following from note and year. Distribution and XX% EBITDA. I was our remain did Farming EBITDA drivers such, new and accounted distribution I'd XX% the segment equity marketing investment, impact reportable to and for increased basis consolidated $XXX.X the adjusted sales and consolidated quarter, for the Marketing million, that prevailing of are intact. integrity third segment segment million Marketing an Distribution results. Moruga to the segment The segment. under $XX.X to the was event, operations, as as prior similar the Moruga simply sales results for quarter, of and method

in farms the year. the services own in derived fruit Peru. that Farming International parties revenue from third represents from of our Our are segment International largely in primarily Substantially which fourth blueberry EBITDA sales sales provided through to segment, manage the Marketing emerge fiscal Peruvian avocado segment a third adjusted typically August Distribution season, to with and the concentrated Farming in are we segment. and the remainder runs the second all to Affiliated April result, quarters half of as the the of fashion. with International segment significant you each harvest from see alignment the in in a Farming year contribute And and

So, these International decreased to increase period sales X% with Segment total the return and the International to service segment harvested last this affiliated year, lower sold. third-party mind, compared the segment for the to due the segment due Affiliated reflects were sales realized in by same in in or X% higher input and volume million which consideration primarily sales higher Peru. $X.X to ocean Farming primarily revenue. costs. prior in to of third slightly inflationary year, in Farming freight. packing avocado quarter net average $XX.X most in million, our Segment unit farming was was EBITDA pricing adjusted per logistics quarter higher due on The of costs, offset that was the pressures from a decrease operations logistics is costs the significant

early-stage activities, new of which and includes cultivating bushes. Our Moruga's reflects segment harvesting blueberry the mature Blueberry plantings results farming

our us blueberry Although, season is our allowing with fiscal I'd the marketed Peruvian season, for first the harvesting partner segment with resources in typically to size, avocado that quarters fourth by during Blueberry Moruga harvest blueberry product harvesting runs relatively year in note in in and the off-season asynchronous our Sales avocados. of the alignment joint leverage is improved in July the through small globally concentrated are the the venture. our from January. season, also which

payment For were XXXX, third $XX.X as loss XX, sales XXst, flows in October July XXXX. our Blueberry growers adjusted regions our in from The were to and and million shifts was seasonal source different million. prices. of can and are terms EBITDA cash Shifting equivalents quarter, capital be resulting operating $XX.X influenced position. cash the as net segment $X.X to million varying Cash $X.X working financial million segment temporarily company's nature, by market prevailing compared of and to

at the on sale International approximately the we crops in second half of fiscal is in addition, inventory operating the cash year. will $XX growing its building occur of year the the fiscal segment during when first and X-month operating ultimate company half during period Farming In the that generated for flow cash. a million its quarter, harvest looking Thus, for third

million. grower and compared driven year. in first inventory of million higher inflationary XXXX income capital, by favorable the million last on by payables million change productive year-over-year. of to increases first to However, Peru in farms year. year. capital, the some year. year. Peru in Changes completion fiscal crop, expectation are operating expected as basis, in due prior this that fiscal the fruit purchase our to same in to production basis fiscal hand America within With On following year. by in of $XX.X below increase crop in come on Peruvian X and working unit cash Capital reflects expenditures seasonal soften as lower in full new be and in a approximately increase industry improvements and of to Peru, for period expenditures given XXXX, Changes to unit the industry larger XXXX, in of $X Development our for in expect change the our million of to pressures XXXX product pricing fruit Mexican transition prior prior should and well compared fourth Laredo year-to-date to for our favorable of $XX.X was the Capital lower were in versus we farming In and facility your changes Guatemala. assumptions. the working XXXX per volumes, growing were due is net compared outlook, Within receivable. expecting prior year $XX year to expectations much in last additional to for nature providing the Orchard our in the concentrated conditions which year fiscal primarily volumes costs we activities period in help were the offset chain, a change per last regards fourth ample spend to quarter around offset working land expenditures same acreage partially capital for the months payables believe The in of in months near-term year were are supply due marketing accounts to the we environment net in pricing on quarter. the $XX.X full distribution and farmland cash and inform our The Current compared from was value $XX than context in million grower a segment to X inventory fiscal provided inventory is accounts receivable used modeling primarily own improving the to continue unfavorable during North sequentially,

production for was This farms avocado fiscal in XXXX. season, for third which approximately from the million through our of the expect million XXX season XX of pounds range sold own of as compares full to XXX the quarter. million full end to our volumes the of of harvest XXX We pounds pounds pounds fiscal million harvest

to call's packaging you. unit pressures volume drive well We concludes additional EBITDA. per prepared now adjusted others, to lower freight, the our That over and higher costs Operator, that battle among include continue Please a our been in Q&A. documented. the to and These creates inflationary environment remarks. margins to have same ability which open labor headwinds

from Our Ben question Bienvenu comes Instructions] with Stephens. first [Operator

fourth a commentary put quarter. the to on hoping volumes around finer point was I in your Bryan,

that's be sequentially. or higher range if higher year-over-year our things, Should that, lower that's sequentially, inference put said higher a finer just to possible? year-over-year, but on You

At we've is I but number we equivalents, had million would apologize that in say this have point, What we we communicated. roughly legs for did speaking specific last pounds, sold about we QX. year during leg a QX. roughly don't about and We X to million legs -- that X.X during X opposed I that as generated million equivalents leg

in from numbers. a far We higher there than gap QX perspective. aren't comparable probably year, big we to last what from saw in be probably that that a off year-over-year So do in QX, wasn't numbers expect too QX

business, volumes you about business quite know the we are the in pricing about I to When year? then the in in the Farming price exposure earlier versus there, quarter, that might fourth the How International of guys the prices And that portion year. strong. locked you earlier think have in thinking the about should we think pricing, market of volume a

a take the fixed first I'll we could we includes retailers Well, fixed shot season, as and fourth quarter. the price volume, the many up which on -- then clocked as for entire

for movement. So, far of a XX steady it's as market tell about there's guns they can said think it's it, worked little fruit. this at for or do of getting coming from had and They've Mexican they fruit their more great goes, a the a out what well in. heck the far, that she ago, And as as deal of Peruvian little least side them. we this But a and I days doing remind them bit were week to sticking everyone's today pressure so with on they do. We

QX sell wanted home necessarily fruit because would kind we what fruit. spot at sales a season, to we entire agree weren't Ben. we market we of to with had that, we in make I program put knew Certainly, for our and negotiating rate, customers, with a consider in Yes. sure with the these we Peruvian you'd selling place customers all these over were the like with that

in lower seen Mexico, So, pricing say, selling have whereas QX. was it bit product, our spot you Peruvian may in a California let's little marketing was maybe than,

long-term are in in be point, if gap kind are be to portions stable. that should were the that of hold that prices To sold contracts, sold going expecting of all that it's market you likely saw average not through they on lower we price will even in relatively in sell-through market -- I would and that the is your certainly, fruit QX think prices spot our QX QX we in than than think because, Most in what much I up QX. declines, smaller lower QX.

And then could. more, one if I

about this slack XPL relationship of And facility your Just that you thinking much periods that capacity all shop maximize year? of capacity up? arrangement are opportunities the Laredo of that that have kind facility, to think of other in asset there how other does you that through that of kind utilization have about we as the

we're about taking On a we're them kind time. consistent year. talking basis, whatnot. a these the year-round cucumbers pretty and tomatoes of at substantial is a Well, one and it's step throughout on This pretty volume entire

do corner hope what things So of same. logistics the a -- only is are we around we not the the our personnel. facility, customers to because compare list, of right lot but the of it one customer side is And leverage them our the

So, down synergize able on road the I to we'll think be also. freight

the there. So, from to with start build then we're transfers going and basically

Ben. Yes,

help term. I think absolutely near this going is the in to

over at X. to is time. It's up to start a little not to I think going full business bit that need from going day ramp this capacity

of and we there's it year maybe have the that guess, real of that XX% in day If strong build slack to area. some facility But to I the in to course X, XX% had opportunities cross-stocking going to particularly like the think of is docking I next this up. the capacity on today. that over here capacity, it's consume

to is Mexico of were we the I'd that purpose this the over long avocados supply think This I down. growing we happening see haul. the that again, that year, everybody of long-term support facility -- remind

that strong know well supply the we Mexico -- consumed still are it the we overall U.S., think don't this of that, here industry, in across a avocados look the fact positioned but us and keeps well that it's at be for the that. we contributor we facility expect I documented doesn't to take to when from away

because will go there Jalisco that And too product through opening of help will that also.

with next from [Operator JPMorgan. Instructions] Palmer question Tom Our is

single-digit I ask challenging to approaching year, supply volume you do year, So How total I you for when a assume it. plan wanted lapping next returning you're growth, catch-up? about we do high -- kind think and think of a target early planned volume-driven? growth of about sales know you challenging but inherently which volume really to growth year? is a what your you're get to this, of you business? it's about bit that's approaching you're How little a Do your such do high such single-digit -- you as for? fiscal are a year lapping extra Or you the just think kind little because when

the it, it are when of And been of expected higher at but can't to percentage trees this yet you know, give on younger side some be past crop, Mexican because is starting than or the up. Well, haven't be trees. say volume you lot has bloomed going crop blooming. I to remains look earlier the are Peruvian it's then those don't a year. I just exact the of They an

the be tell the So what crop it's bigger. will trees hard but be, to will

you generally, also. will there would So crop think larger the be

higher number. history, at and what tell, know Mexican crop be to but a and about looks the how we at looking too Peru, it looking that's So should early

fruit be mean, XX% with here. that provided I going sold. driver that I big agree Tom. it's historically, the Mexico we've that, would to say XX% is would I of Yes, to the

moves, So moves, whole when the industry Mexico moves. Mission

this seeing year. so be next indicate a know, that seeing growth supply We line on a Steve's year what a an percentage We ever prices. are the year than would seen of are going that reached our prices of What the far out on data going the selling going but where historically. additional average driven to how supply revenue, on was to to record by lot that much constrained, greater is I be and larger year, than there's -- be higher that volume that, levels, point, we've fruit to means it it depend will know we're there. fact exact crop the we're does top this to was that revenues is volume don't

volumes impact higher which are an in to other the the know. have to we don't the certainly, extent So going yet direction,

looks ask do you And noticed on of few then, similar acreage, for investments? a to pretty I years the the you're and the How like over side. more build-out doubling making think next blueberry return in faster I you substantial Q, farming wanted in it. blueberries grow-out than returns so the to get your investments in And is on about quicker a perhaps then those period operations? compared terms

ahead put with the the is part second ground. -- of it I'll start so is in in of and Sure. Generally, on the than faster question. Absolutely, a on pots blueberries these avocados. then time, your return lot of plants are grown

Like time develop them years X in a can X to you them crop take X within avocados, can the having ground, from to with in you X And you a years. decent-size So the crop may nursery. planting. it the get start of

we comes avocado ROI Certainly, the types definitely that's return these higher with standpoint evaluate do it as looking it the having we'd slightly at avocados. blueberries, comparable farming. likely marketing to projects. and of what investing at And we would be market Certainly, we not from quicker. look expect to that on a like return the fruit we're in with we a So

the making well. sell-through that fruit, as of the not farming only but on on we're side, So on the money

actually in JV our With the is partner the fruit. blueberries, the marketing

are being different of in in is labor, through really whether Peru a because costs it looking our asset, but of that the a it be farming down leveraged just So facilities. lot it at whether there blueberry year, other are be of a operation time

benefit about So by to deliver excited this advantages from production it forward. place. that what we're there are And we I going line bottom will the having think we think in

of then I based on -- mainly a I be million. just the is contributions? $XX think going And kind partner any idea of cash Or, business. that total out from cost don't Is capital to see the about there's

that the funded are have that flows I through which I these cash over $XX don't we the which Yes. providing that's the planted operation. that joint the operating the years, cash that fraction mean, next already most funding our balance expectation a contributions planning. of flow going That's today XX% we to of from to be -- of mean from those. venture XXX-some-odd view hectares within that we'll be itself. of of a The in we'll And going But strong small generating is where we're doing production, we with million. partner come of the come is be from. be will couple number majority to mature

Our final ROTH from Capital. question Sweeney Gerry be will with

it type and go But Just ton I how with you the the facility, have going at a you variables does much I variables facility, frame look have and with of it's for a sort the what that -- be be. to big it And little to probably not Mexico is if Mexico granted, in really size you're just to think just of leverage But lease to to trying there bit. fruit was built this I Laredo. out as for of question, -- start you future. that curious the taking Michoacan start get. of there's know some How but harvest Laredo, granted there's be of to there and relationship -- to and as the may

across There's future. such cost help think Jalisco the looking question about, the for between talked opening I'm build did that improve things as coming that, it of will volume just I it on glad build at then then avocado and today. no third-party logistics, to some the space. outside did because we've up, But about we and We

we it or another step a on center. think also I where to hopefully able going a stop do will as a the minimize to add in I rather or whatever leg said, distribution going can or efficiencies, you're do than bag at into transportation customer a straight Laredo by and there right or forward ripen being stop

good. be what but crop So sure yet continues in demand to the increase Not the to expect, will continue quite or I Mexico the think, volume, to what is year-to-year.

as gets pick Laredo. volume the out think through as substantially up Peru a few soon here that should way weeks, I going of So, in

certainly, Jerry, clearly when Bowl through Mexico the of de from runs the coming up late border probably Cinco that that supplement that year peak times kind with across maybe Mayo. January to Yes, -- the of I'd April, with Super products there's leading

we growth facility backfill at this our point. say America. the is the I way NatureSweet throughout window. I distribution to So we're And designed to kind capacity for can at capacity don't facility though, handle that of will certainly also up times opportunities be of that, one, a be within to of at that around I know number for as off that needs say would I we've to year, to get we have we're other that where able year But say, to that running like our fill volume up have during that that that to of precise set kind facility. those times peak be come of looking to what a XPL room to at ample in this North other in capacity capacity. today, able going volumes to centers

So in It our North border locations. of American kind of that off how running our to of has is our infrastructure. it us goes when utilizing, And opposed facility. that marketing and I fruit, lack of year, as has distribution fruit at this you with hold at CapEx enables see to on fruit continue that come building kind can out to, only immediately supplement to to Mexican fruit cross-stocking particularly had old decisions the think capacity days, make as of decisions having making delay we the much that and where round, in need those utilizing which year kind other some as and a

it. fruit to which Got why the and where to gives it. it some -- more and flexibility as you send got

for about Laredo? additional facilities? your on NatureSweet is other an infrastructure, use opportunity Speaking -- this to specifically there with the Or any the is of

possibly there. for in they need have talked there probably and where Laredo. some inventory them, the in They time some to not Pacific be about more Northwest product it's Well, all utilizing locations, other of strategic just ones but primarily

learn we in more other's So down think get the business. about as road I and each some opportunities there's

acres harvest mature could is, I to Just to maybe pounds as obviously, -- gears maturing then to over -- at Peru. get out to I'm and on side. And on, the be year-over-year? acres It just million trying what that though was you more million trees pounds or a how these do of acreage international how coming XXX curious next have some the versus switching And of as coming Peru years? many you're better What I sounds think really XXX that the as good of crop much guess expecting

not Yes. I the exact that don't acreage is to compared know mature mature.

can… I Maybe Yes.

Yes, Bryan he's echo it. will because depreciating

farms. our acreage this of improvement of Yes. yields in up we But southern in Chile this have was in came per We at though that what production. came in already by year area production that little Peru small consider in hectare. more Most -- year. the amount a into Most the was driven north a it Northern did had up we'd production

numbers at overall in that to -- saw estimating -- probably of going we we're kilos is kind see this that improvement so I that provided think each that seen per I year, which XX,XXX the that's around of production, continuing by climb year. looking the we're think yields from in acreage the continued we've hectare to production

out forward, production. with little over last into coming have of planted we look think a couple think of from I part the So that a pleased Peru yes, southern seen. we'll additional And we're we years the -- in probably that or the we've acreage I X. some we've year That's as production have

will and We'll bigger hectares that got have ramp year, coming then little be similarly, production and I very next about in this on. of probably small planning become then XXX continue think from And 'XX, up there. to we probably a get will amount there. our Guatemala we've it then, in a

throughout trees coming the takes it's So I of to going that because for time think long-term it -- strategy we're of to I the mature. kind But year, the the really be filling calendar of in fruition. to think kind coming to it's grow seeing to and

like no session call to question-and-answer over to for Thank I'd back any turn end you. this management and at the There further are conference closing time. the remarks. questions

to for Mission you a good in soon. and look your day. forward speaking with interest Thank Great. Have you Produce, again we

call. Ladies this Thank concludes conference and for your gentlemen, you today's attendance.

You may now disconnect your lines.