Mission Produce (AVO) 21 Dec 232023 Q4 Earnings call transcript

Good afternoon, and welcome to the Mission Produce Fiscal Fourth Quarter 2023 Conference Call. [Operator Instructions] Please also note that 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.

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

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

Thank you year Fiscal was for XXXX today. Mission. for joining us a dynamic year

Although a XX% million XX% volumes XXX in a GBP net due unit drove the per sale prices. million total avocado in average year, $XXX to decreased for sold sales decrease avocado to X% increase to we

XX%. American term. improved the has instrumental And in volume consumption This volume a with that in driven largely and we globally believe over to However, well supported have served reminder consistent decline the to is by our Asia growth North of with this supply a our do experienced an environment intend important market. Mission that I'd XX%, context environment, goal an through access in extremely per remind we Europe I to capita and long that thing markets drive our growth. driving that is the made such supporting year, business same the higher us markets long-term by and prices throughout which playbook you as in and is prior a volume normal growth then our translating robust primary is pricing

opportunities growth methodically To and in building a fashion. these support demand we in those markets, regions our measured are emerging in capabilities our

United center progressing our construction in according handling our of as to with Kingdom, is capacity, writing and the our build-out Phase category. to forward well distribution room, building the sorting plan new Mango popular instance, as For including additional capacity for storage expand II

fragmented our impacts unpredictable. by price This individual out is equilibrium. the While avocado growth were primary the uncontrollable can as of higher by variables industry year. higher marketing volume decisions with contrasts industry growers Influenced Guatemala prices from such and supply. the out other and current our the owned In around the supply volumes Mexico in to made of driven over the and world have our acreage sold be weather we to decreases sent limited developed our patterns which production and previous XXXX, with strategic that supply-demand Colombia supply like In mandate, Mexico years, we've order year, subsequently source and mitigate skyrocketing. vertically to help our in strategic Peru business out dynamic, regions the integrate in year-round avocado balance decisions this

maximizing for full part higher turn per-unit segment. resources value and realizing blueberries was variances. lower & due for year of XXXX. We've us this improved our to identifying productivity on EBITDA segment, as Distribution in and adjusted a in diversification in which Marketing other margin led also Despite to volumes, seasonal our to products diversified substantial this in the revenue such XXXX our leverage increase that The existing during ensure by in mangoes assets to display that are allow we

and online We exponentially a headwinds we in with that weather-related These this emerging revenue the International helped approximately growing and performance. induced included Nino the and our by quality year. our from the average issues million our breakeven which us segment volumes, in flooding. segment above Peruvian face both $X.X met came also Farming half contributed lower-than-expected our resulted gains improved challenges fiscal of XXXX. El increasing during season Furthermore, temperatures insulate fiscal Blueberries way impacted These year second adjusted in material in EBITDA of segment segment from challenges Farming with International when

volume in overall allocation second events, we increase prior in turn these consolidated typically market of knowing and our generate the weather-related of that to impacted cash the would half ability Because full customer expect to and we generation. impact were in adjusted the our commitments EBITDA set year, the our seasonal we pricing limited in which

XXXX, year's experience. to strategy International improved ahead our realize we've we to marketing past pricing Looking given expect adjustments our made segment, Farming following in to this

factors should conditions to lead assuming weather the have remain for advancing efficiency. yields predictable meantime, Farming improved this resources on these addition, We of In to have cost create constructive Continuation believe backdrop offshore we coming focused more next the a measures for In control will International a year. maximize your in performance conditions our moved year. more pattern reallocating production weather segment Peru. and

with great the flow much to avocado the We support a peak believe year through operating more enhance anticipated capital are spend be in modest. capital ahead. will structure we improvements largely position in XXXX, and cash that to term, in We our CapEx are our business, in our in near the cycle declining investment and needs

on Produce. supply with focus is on efforts of consistent continue globally unique the to avocados We our to capability long-term consumption trends scale, supporting Mission that growth organization's a and a global year-round providing market

about Blueberries excited seeing of and segment. continued our accelerating advancing mango program the also success and our are burgeoning We

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

Then our on and everyone fourth with provide industry of the review Thank segments. a position touching fiscal financial reportable I'll some within call. we the update our on drivers our conditions thoughts you, seeing. three are Steve, on the current to performance, that start on I'll conclude and afternoon of good quarter an with some key financial

year, higher compared an offset of pricing the our same quarter. which volumes avocado for segment, volume quarter. in the Peru to a fiscal during period lower XXXX the lower further the higher by revenue decrease partially supply increase Blueberries in with sold. industry $XXX.X Total by growth the avocado in quarter by last XX% and performance out driven prices, fourth per-unit was Revenue Both was by sales of current fiscal correlate supported X% million, strong increased

increased million Gross in the $X.X $XX.X million profit quarter. by to fourth

Californian from elevated higher profit profit Gross per-unit our pricing sales. Blueberries benefited volumes strong driven Our mainly segment. growth XX%, Marketing margins also within segment and and experienced by of gross Mexican Distribution and on avocado

about quarter events pricing and Nino-related pricing On we fiscal Farming conditions due in from on were spoke segment which same experienced during sold driven the a season. farms. our decline a avocados lower contrary, company-owned third weather our that quality our The harvest significant El resulted issues profit volume lower in call, International by the volume and compressed lower to gross in Peruvian

labor expense in the severance million to charges, SG&A growing primarily U.K. increased to and $X.X operation. compensation year, our or X% increases due to support costs additional last same stock-based compared executive period

and working ahead. our the on goal quarter cost we to in attain additional fourth select areas to reduce during hard year these items, made saves Excluding are controllable the expenses progress in

net or diluted per $X.XX quarter period of the current for the or diluted fiscal fourth Farming to noncash Nonoperating a to year-over-year $XX million was $X.XX which change charge the for the income within last items associated XXXX also quarter $X income loss compared net same of year, interest million share share Net related contributed in higher rising million per International $XX.X the of rates. segment. to and with included goodwill expense impairment in interest included

compared was million EBITDA compared million for quarter to for performance largely more as moment. period or year. $X.XX for marketing of a offset million Blueberries fiscal address was weaker year, essentially the period last same distribution I'll from Adjusted the that at International per and in Farming $X.XX $X.X segments share and detail $X.X to per flat by our stronger from $XX.X last were net the a our Adjusted in diluted million XXXX income fourth performance segment same or $XX.X share diluted

Turning now to our segments.

in for X% to what EBITDA and $X.X we million The impact described margins. or to years. the and the avocado due million quarter Segment have harvest net the pricing of typical current last a August to increased over experienced California adjusted $XX.X and XXX% from are unit increased per that quarter, million Our previously environment. year that a stable $XXX.X Mexican current sales Distribution due into of extended gross Marketing segment dynamics benefited few volume to harvest the the season margins relatively higher

this and second and alignment Marketing third-party our the the which season, fruit in amounts owns for from generates our the to of September operates fruit of producers segment harvest operations half of currently starts year and of segment derived Production and revenues our avocados also Distribution segment concentrated sold April in and other into America. Peru from Farming Blueberries. produced of each for with International processing avocado runs is segment. both areas Our revenue smaller packing Latin from emerging in year. EBITDA of with vast and from smaller is which are and fiscal in majority It Segment orchards Peruvian typically Blueberries

to of like timing was to in $XX.X the X% recognition the million same shift to the the versus timing segment last in segment sales by segment I of harvest aligned segment would revenue Peru. in prior that were phasing Total period This profit timing to change recognition to point by customers. the the a avocado aligns out with Farming whereas sales were distorted year. to it the with reported methodology previously our of sales International and compared align increased year

That volume to $X.X in and pricing. combination As farms growth driven profit million, drivers decline of decreased resulting adjusted sales avocado lower volumes due lower is to fundamental drivers of to by of realized resulted that the such, revenue. million price Segment gross in approximately apples-to-apples an was the from EBITDA lower contrary primarily sold XX%. from company-owned segment lower and $XX.X the segment recorded a

to increases driven our from adjusted in million in year. an million $XX.X from from sales resulting with tends production increase to The harvest a be increase the $X.X concentrated increased fourth and in higher typically $X.X industry XX% Net segment with varieties. in alignment Blueberries January. the farms to to relative Peru, lower in combined our volume year, about start blueberry by premium due by earlier pricing own XX% new the to supply own of to last to runs was season first last brought quarters increased blueberry the The farms. and volume commencement were fiscal comparison through same the from July Activity and from our year our season, EBITDA million, harvest period of which Peruvian segment

operating period Farming avocado were sales last The receivable Shifting million by Net October driven $XX.X negatively activities equivalents October Within financial were $X position. by XX, impacted million cash working year. and as Cash prices to compared trade as cash $XX.X our million and operating pricing. for growth. capital, compared XXXX, was was primarily change well at provided volumes $XX.X million blueberry to million capital the as and higher accounts $XX.X for the XXXX, XXXX. of fiscal segment XX, within to same International weaker the working year higher ended XX, performance October by

other VAT In assets accrued earlier was of of flat year payable as of expenses. our of avocado capital to inventory accounts International lower the company-owned and in on-hand Farming prior offset to by compared favorable relatively the completion in the impact season attributed and fruit were from refunds acceleration segment, reductions decreases working

October less million $XX.X Capital to prior development XX, compared of expenditures million included XXXX, expenditures in capital operation our year. compared Furthermore, fiscal than $XX.X million year $X Current expenditures Blueberries last to related year for million quarter $XX.X totaled our to million. $X.X ended the were the fourth year. in capital the fiscal

prior are joint of year investment down million capital nearing communications influence in our to spend seeing the that $XX.X Blueberries avocados. of the end Excluding CapEx step heavy decreased we million. The recent venture, with $XX.X are we aligned versus prior is the that cycle XX% or the in

Blueberries For is annually. fiscal perspective, and with term annually level is XXXX near of business, levels projected range excluding approximately the over of $XX the for million, $XX of is for below fiscal CapEx, CapEx our This million and comfortable it's of $X XXXX with consistent fiscal $XX our the which these million to million our budget for Blueberries This XXXX parts in that business. approximately approaching averaged earmarked through from XXXX CapEx a we investment averaged $XX million feel XXXX. year,

feel we footprint various continue to we assets farming will for avocado good our we have business. projects and facility that progress While support, that the supporting core and in about expansion improvements

a blueberry the expect generate its XXXX is continue can pace growth Blueberries future. to behind measured We in we joint cash ensure beyond. investing position to at fund the venture business in to in that but growing and Net, free business, own flow positive the that fiscal our believe a

And year. leverage. improved to to Thus, modest operating in our repurchase instituted which the minimizes given our share structure we a utilized a $XXX,XXX is maintaining we be debt quarter, sheet for approximately in our priority. cash last capital a XXXX, of position paydown we allocation is Although our quarter, forecast near-term fourth balance this core that program strengthen capital flow priority healthy in expect

lighter context drivers assuming to modeling but conditions help the our prior be operations, quarter inform Xst year-over-year sequential to on volumes the lower compared that expected are we Industry some assumptions. for harvest, of basis first slightly sizing. a of providing slightly our approximately XXXX, a resulting our aligns $X.XX lower be higher the in part Pricing pound fundamental for expectations with terms quarter XX% on fiscal our volume industry least are year the your by expectations a per expected at versus to near-term in experienced to expectations. fiscal due around period smaller is of Mexican In outlook average XXXX to in fruit basis, on

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

Bienvenu Our Instructions] first line Stephens comes Inc. with question from Ben [Operator of the

so, I business know the the priority left are as been of driving cost last the particular, from could, of on we seen to residually or we inflation in in years. equation. out a to and that over wanted the think it's business? if to cost XXXX? start, about cost is much Where of side last drive I the you cost the out And how over the we've higher that path several opportunity year

by we area. in low-hanging continued start have saying fruit picked labor, to I'll a just out the been drop. down of Peru far, the Freight Well, lot costs mostly so

as benefit pretty drastic dropped looking at off it we're I it's there little good So forward. as a last going still but coming not year, a mean, bit.

off the that and... the I can you tell So two those ones are big top right

mean, on utilization couple Ben, asset us. Yes. is a important we're would I say, very to focused I of things. certainly,

distribution at look strong business, we saw this that packing our on certainly So impact growth volume utilization marketing of and we globally. year, and had a favorable facilities our

the regularly our think the the improve, farming opportunity questioning near we in that to Steve's looking to is down for and I in have I opportunities in operations biggest think we're or costs Peru. within point, operation our term

to to controllable what the operate to closely working cost with team go identify need extent, I a down think some the all truly there model back really we're that are the of of budgeting we kind to and zero-based of farms.

doing are the a time, of on volume things high was drive and of of that focused farms we're went and priority. a through that yield We investing number improvement to kind focusing a in certainly around period growth

cost think reduction seen a with lower and maybe few certainly initiatives sales the more we've causing that focus I it's years I our over we by change philosophically focus think Peru, higher little us have. pricing volume on the to out driven bit of that last

this costs farming had we Steve's benefits higher offset last the before. we and fact of by point, year saw freight those than packaging benefits ocean -- To year But the higher saw we farming costs. really lower that

of yields as driven result a that Nino. fact that the lower Some El our were of by

year. We the specific farms a we this themselves. QX next at we're would opportunities. that have on don't certainly we I We're seeing yes, QX are but and point, number those meaningful reductions. looking end sheet costs of until balance of our for most are get looking up would that within things So note to

in our up start really XXXX during farms the results product So selling it season. show until won't harvest own we from

noted peak the of cycle. CapEx You spending you've passed the that

You've capacity. made incremental significant investments in

us the capacity growth that can to deliver? With about online, to expect you have brought you help that ahead runway of the that you you think relative the you

pretty -- the know, a the with facility you outside We've expanded business we've of London along state-of-the-art system. pull U.K. EU as in aggressively right product for picking up Well, through got into very helping the London that's rapidly.

and I now and into But that assets our rates fill Europe. think this Asia, mango some nearly pulling invest, too and category leveraging when as truck degree through do we that such to great into look over as we're product to the utilization. is we're steam go we in we continuing assets but picking not leveraging our up facility just forward,

it's really areas where but little we're there. bit little bit say it's can't it's a focused. So here I area, a one all any and

different than time volumes -- build they a North our what certainly I top while XXXX or what the not seeing -- through what XXXX, were norm. the in on Steve Yes. would went fiscal in period say, higher double-digit We're meaningfully the through in space that of where we did not we moved says were XXXX. than American did avocado that rates they of 'XX operations growth and were we

areas they the few While safe to higher growth years see of last we're produce believe off rates bit in that what from are we're I and were seen the the come a on we'll have than growth we've category still category, that say seeing decade. prior bullish think our we volume what in very over that other it's the

today up, So to particularly capacity America. North volume, more to got in be built able handle we've we

is significant Mexico, handle from I currently think moving. up product more our is than we're handling which volumes geared Laredo that's crossing facility, to

out yet. We haven't it completely built

expand overall, capacity border spend say some do having about do us I to incremental talked opened. within we DCs in I before the where feel Laredo that's will ago years to consistent hold more pretty we give we more about as end But flexibility. again, the our fruit with kind of capacity opposed is I further. could think stand. some And there of good facility that there, think we we So what at And

other and So of some alleviating pressure fruit DCs on are there, well. more our as holding we it's

real good think -- that growth to opportunity in in the U.K. a there. America, where the see CapEx alluded Steve we're there's feel I North So a we spot. in we

our in -- identified There that provide plan I we we Europe, like that work road there to a in facilities. retail distributors that think the truly to point value-added But down that market. our feel the we partner where time can over kind need be today. with some competitive to in third-party services a may is use help of we've invest to got direct we need can us force be own

trees I we planted think beyond all got I Peru the intend we that, think in look the for to when the foreseeable future. today at plant farms, we've that

I build-out think that -- we're our is complete.

capacity packing building -- back to own to we scale farms. we're fruit the need seeing our a off going think we're house be still related I a in there have there. be we service going that the packing our of definitely we're to But We location avocados. harvesting And to Guatemala

that little acreage are and at. CapEx down planted from right there'll to So are certainly our in where we a radar other the farming still major a And things from that we those X step is do, were But really the on now. years. a next more be Guatemala over standpoint only likely need a

to flow. on the much through joint its being we cash venture, focused fund investments able operating last to, this think that Blueberries, alluded very I part

agreed CapEx that's I the forward. want going partner, we to with move think we've our how

down to point the different dramatically enable CapEx So getting Certainly, start right determining there on that the to defined depending with overall It's in. back over how Blueberries. over there, development do might today, seeing a might we're year we're of pull -- going off of some we're going kind after this the Blueberries those cash a of where has slowed of just efforts with it. to kind rough years many generated investment us we now a flows it Blueberries we're But some at environment enable and it us even again, a that are make.

thing one about those And Blueberries.

utilize actually, and those run packing lower the facility -- off-season, through helps it As in our our our avocado during we also giant year-round. that so Peru overall facility there cost

Partners. comes Capital from line question with ROTH the Gerry next of Our Sweeney

Bryan on the I'm and you controls side. thing talked bit changing international more was heard that's I the you're little about one the Europe And you could if was of through give what -- highlighted cost the you in I on that sort if detail I front, wondering correctly. a improvements that strategy. U.K., But think marketing assuming

Yes.

-- three we're that things, comes Certainly, there's America, looking or which When think allocation fruit to. we markets into Gerry. market we've we've North Asia. primary the predominantly we got I play. send few is got primary Europe -- into four U.S., and markets

Chile America, doesn't available and an there, to to be. is that that fruit country goes South that it's amount exported, fruit overflow really then but of market. worst-case processing. goes in there's minimize scenario, try stays And get if We the need

in those order, returns, returns of in-country kind -- lowest we the markets. return. of of is then X fruit would and other export second kind overall Chile manage primary lowest in the the Packing terms be

within certainly, on not by that is determined that much of is bring the only fruit can amount we Mexico. fruit by whole Peruvian but pricing in U.S., sends, the in how the think the industry what's I the -- going here by

there's the a to to that, there market we evaluating to will the are be bring that the bring coming in case. see U.S. crop going to if Mexico high -- think be the year. So opportunities Peruvian we're season the And through probability fruit as that, that move opportunities to more we certainly, -- more

I solid probably volume. fruit kind looking location its takes strategy. second returns amount we through we next that second we're year, of Certainly, employing operation Europe, being it. our the in of generated And look direct-to-retail that very to most run which we significantly through that the is think year market actually to U.K. when expand the

So do of more able we'll be that. to

direct still We the on retail. Mainland own to Europe, in lot sell have through a think capabilities our wholesale I we to able be sell repackaging didn't markets. to

transitionary I We capability think the now of it, we do do but will period. that next of it into send try on think scale where we with to But possibility next returns to go feel as that, Mainland business we we top of real areas have this one to may I the we be back that volume a going we we some do that the year. portion there's year. this are overall that the year, It's to a Europe certainly saw weaker have there.

last And Asian then would markets. be the

I get think will again, we be decisions to as will going evaluate much strategy. market to season and need the determine the that's And to be China there how made being overall fruit what to our the as put based we to want to we're overall market primary a upon close driver. returns in

all Mission of fruit I on will its own. historically, marketed has its that say

looked fruit haven't market through We to partners. other

considered also we as coming that I we move that haven't it's the year, something think something past. that, really is that we the will to and in evaluate forward

yourself, that When all that you talking X about marketed regions? say Asia? are that Or specifically was -- is comment, you

for compromising fruit farms XXX% markets, percentage whether Mission fruit certain parties in it. it's the position. really the harvest some Peru, can think that send the label. evaluating we we that the let other if of our may competitive returns is talking No. boost without grow marketer we their help the we to fruit that, of We're of to exported. that the market In them under We're

about Understood. fruit come pulling to Europe that And assuming fruit may be you the the would then back U.S. comment made there. some I'm

U.K., -- to would those markets U.K. it come could in. be to It the would U.S., come to up the likely it the would that most could the go end

would pulled Could this able U.S. Europe are you an do and it like you from have You to have been analysis? brought year? some profitable to fruit done more -- or the

U.S. U.K. The probably The not.

here. a a that have to market and Gerry. into massive were and fluid went off change going it thinking regularly. brought The could last some belief crop, is things peeled season, it's We fruit Again, have we we

the possible we tree. fruit early So see looking that July, drop until got causing impacts some of we to to temperatures down the were we the June size we actually accelerated and seeing started market and late it It June, El fruit was at to move of harvest the we're or think warmer Nino wasn't to up I on every not late approve, through.

ended during we as being ended Peruvian and did kind up harvest of fruit quarter. as So a up industry accelerating fourth of the whole the they a shortage

could we we and over schedule better. allocation could differently. harvest slightly managed think have We the have have had managed we season, I things then the known managed could differently certainly the market

are but I year, think look that's as favorable today, we certainly the conditions look going seeing closely to something potentially to more yields coming like. the going we're weather we're to monitor to what understand

variable. big a think I that's

'XX we generating I returns it in feel was and think figures. than better overall we're returns year that -- those we we next 'XX, back what did sales product Peruvian we we've we and of seen fiscal certainly, of to this sales in on that can not year close -- the lowest This were confident think we But generate excess to if what can date get year.

get I And it. too. it. Got a It's dynamic I market, mean...

Yes. lot been guessing. of that we differently. There's have easy done that second do could things It's a

we when the going how we behave learn we are try everything from kind to we can it forward. that look and -- and differently seasons I through over, what figure could out lessons think of

in question. stand it. Got quarter. out blueberry Obviously, last One the

what's Just you driving think that curious I talked maybe growth? about premium.

You mentioned premium products or fruit. premium

end we're additional opportunity there, since maybe what's even following year that? CapEx, coming outside Just the And maybe curious XQ the what's above... of driving to and the

Yes.

flavors the The new One larger X substantially of varieties over there's addictive. the last, itself. larger. size the yields that are to probably berry coming that's out are things the have much And years, happened some

money new per So what all or new some of but these kilo. are also these these out they older the much all And we've sell varieties plannings taking yields and the higher. of special more for varieties, actually blocks replacing done, substantially new and we're

really that's X phase why more next just few the We'll years have line more. X they're limits product continue the on we're thing get bottom and going will out old do there in to X -- for It's with We them. and probably is be much money this, to off. a it plan where to taken So years. we continue a lot to better this the of varieties probably over course, X but you a to

over slightly up probably got somewhere future to XXX all in communicated build of Peru, region that sudden. hectares of of XXX another plannings Certainly, have get we've we Gerry, Yes, that the hectares before some will a out today. we've northern probably planted previously, blueberries

we're the things think market due to And of year on. out stronger ago. significantly I we're that's the varieties today We're of better driving that reduction are much that we're this an putting crop pricing -- than and couple Peru lower a last looking year of our than not there's XX% Number in of from industry. at because it of is our same these as new plants mean, out were a we fact one, today market XX% that going that we're hearing I what are overall XX% XX%, the industry seeing was benefiting yields. is some a a still year. younger, lower to at crop lot

of volumes ago yields, not other we other we're these terms saw a think quarter because they fourth bit during did than year the in not we do higher varieties, because a only of but I these but varieties, appliable the of only they're more because we're harvest. So higher our timing benefiting generate --

harvest some prior accelerate a take windows seen kind to we've smooth than window able been out and bit the what we've of little advantage years. these more to of So in

benefited certainly quarter. those and volumes fourth the coming environment price earlier off saw we that So during we from higher the

As terms were we we look blueberries. would that be quarter where forward, believe terms harvest in will uptick we an still There volume. the of but of typically, And in case. our of be from be largest will QX in QX

something that's up industry ramp to relative from On little still it bit year was we as that continue will likely it We But a and a than where saw do we we'll a fourth little the pricing anticipate think nonetheless, were be quarter. little time. will lower probably volumes for flip in in ago this at side, the we track the monitor. to QX what very -- where a soften attractive somewhat,

higher us So again, is lower goal to try out. of And harvest that what pricing kind for the season expect. we volumes, to is stretch

with So blueberries any given at market we're flooding not the time.

even we stretch that returns the improve So opportunities And would into may this further. second quarter. see some of to

the I new XX% effect or still affected El older The of than other stronger has more Nino varieties those say, have versions. old thing, much those Gerry, would these varieties and most Peru, XX%

So the that's helped us also, which go... price makes

call Thank you. turn to like And conference the and time, questions. at management turn And -- session ladies to I'd the the further any this I'm back remarks. to and no over showing closing gentlemen, end question-and-answer for

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

for you Ladies call. and do that attending. concludes conference We gentlemen, today's thank

lines. may disconnect now your You