Mission Produce, Inc. (AVO) Earnings Call Transcript

Good morning, and welcome to Mission Produce's 2026 Investor Day. We're glad you're here. It's a little after 10:00 a.m. and our webcast is now live, so we'll get started. I'm Andrew Pearson, Vice President of Investor Relations and Strategy. On behalf of Mission's management team, thank you for joining us and for your interest in our company. Before we begin, I have some housekeeping items. If you need anything during the meeting, please see Jenna, Jennifer or me. During Q&A, we will take questions from the analysts in the room. Analysts, please raise your hand and keep it raised until a microphone reaches you so everyone in the room and on the webcast can hear the question. Today's remarks will include forward-looking statements based on management's current views and assumptions. Please refer to the slide titled Important information and cautionary statements for a discussion of factors that could cause actual results to differ materially from those expressed or implied in those statements. Let me walk through today's agenda. John Pawlowski, our President and Chief Executive Officer, will begin by sharing Mission's evolution as a category leader and the framework for our next chapter. Brooke Becker, our Senior Vice President of Sales & Marketing, will then discuss our fresh avocado platforms in the U.S. and international markets. John will return to cover our other strategic platforms, including Prepared Foods, mango and our established businesses. Bryan Giles, our Chief Financial Officer, will then bring the strategy together through our financial targets and capital allocation framework. We will conclude with a question-and-answer session. With that, it's my pleasure to welcome Mission Produce's President and Chief Executive Officer, John Pawlowski.

Good morning, everyone. Thank you very much for coming. Thank you, Andrew. First of all, for those of you here in person, I hope you enjoyed your avocado toast. And I hope you will save plenty of room for great guacamole after the presentation. There'll be plenty of it. So Mission was built to lead. We are now ready to compound. This is a defining moment for Mission Produce since our last Investor Day 3 years ago, Steve Barnard has officially transitioned to our Executive Chair after more than 4 decades of leadership. I have the distinct privilege of being only the second CEO in company history. We acquired our largest competitor, completed the most capital-intensive phase of our farming investment and watched global demand for avocados continue to grow. Mission has changed meaningfully and so has the opportunity in front of us. The timing for today's discussion could simply not be better. Mission's first chapter was about building. We invested in farms packing houses, ripening facilities, distribution centers, technology, customer relationship and teams across the world. Those investments enabled Mission to become the leader in the global avocado category. They also created a competitive moat that would take another company decades and hundreds of millions to invest to replicate. We now have an opportunity and a responsibility to turn that platform into more: more growth, more earnings, more cash flow and stronger returns for our shareholders. That is the absolute commitment of this leadership team, and that is what today is all about, showing you why Mission was built to lead, how we intend to convert that leadership into compounding value. First, I want to spend some time on the foundation that enables us to set the goals and plans that we'll share about today. Our purpose is to provide better food for a brighter future. For Mission, those are not simply words on a page. Our business has a direct and positive impact on consumers, customers, growers, communities and shareholders that we take very, very seriously. For consumers, we make healthy, nutritious food more accessible and provide a more consistent eating experience. For customers, we improve availability, reliability and category profitability, supported, of course, by data that helps them make better and better decisions. For growers and communities, we provide a dependable route to market, support long-term demand and create economic opportunity. For shareholders, our responsibility is to turn those positive outcomes into durable growth and compounding value over time. When Mission was founded, avocados were much smaller and a more seasonal category. The industry lacked the dependable supply and customer infrastructure needed to support the scale that we see today. Mission changed that. We built year-round supply through networking capabilities required to deliver consistent product at retail. We also worked directly with customers to make the category easier to manage and ultimately grow. As availability improved and the consumer experience became more dependable, demand ultimately followed. The results has been one of the most durable growth stories in modern food history. The growth shown here is absolutely remarkable. U.S. avocado consumption has increased many times since Mission was founded. And that expansion has continued across economic cycles, dietary trends and changes in the retail environment. Greater availability and more dependable eating experience has encouraged trial and repeat purchase. Supply and demand reinforce each other over time. Increasing consumer demand, in turn, supports continued investment in supply, infrastructure and category development. Avocados has simply become part of how people eat every day. and is now a top 5, often a top 3, category in our retailers' produce departments. And in talking to many of you this morning, I know just how much the avocado is already part of all of your dietary habits and family patterns. Our products are highly perishable and the value of the product can change, many, many times over as it leaves the packing house all the way to the time it reaches the consumer. That makes proximity, inventory management and ripening expertise critical. Our network allows us to position that fruit close to demand, manage the ripening process to customer specs, and respond quickly as orders supply or market conditions change, which they often do. For our customers, that means a partner that can manage more of the complexity. We help deliver the right food, at the right stage of rightness and on the schedule that the customer requires. Mission does much more than deliver fruit, though. We help each retailer build the right program for its shoppers. Because we understand both consumer demand and available supply, we can optimize nearly every aspect of the delivered product, from the packing houses to the ripeness, to the assortment and ultimately to merchandising. Our owned farms give us greater visibility into expected volumes, harvest timing, fruit quality and cost for a meaningful portion of our supply. They also give us direct operating insight into crop development and field conditions, which strengthens how we plan supply and manage seasonal customer programs. That visibility allows Mission and the retailer to plan together earlier and for longer periods of time. We can offer committed volume, greater pricing visibility and longer promotional windows, giving our customers more confidence to build sustained programs around their seasonal times. Supply changes constantly. Seasons overlap, crop sizes move, fruit characteristics vary, individual origins face weather, regulatory or logistical disruption. Serving customers consistently requires access to a diverse source of fruit. Mission maintains grower relationships with thousands of growers in more than 20 countries of origin. That gives us more ways to match available supply with our ever-changing customer requirements. The benefit to customers is greatly -- is greater certainty, and that makes Mission a more valuable partner and embeds us more deeply in that partnership with our customers year after year after year. When a customer buys from multiple origins, consistency in product safety become more difficult, and ultimately more valuable. Our job is to make that complexity manageable, by applying disciplined food safety and traceability standards across our entire network. We support that work with centralized expertise, local teams, third-party certifications and quality control processes from packing all the way through distribution. Consistent execution builds trust over time, and trust is serious in our industry. And that trust becomes increasingly important as our customer requirements and food safety expectations continue to rise, and customer expectations are often higher than local government regulations in many places around the world. Through AvoIntel, which is our industry-leading category management program, we help retailers understand the consumer, where the category may be underdeveloped and how changes to programs can improve performance. The value comes from combining those insights with our deep knowledge of the category. That allows us to move from identifying an opportunity to helping the customer execute against it. When we help customers grow their categories and we do so profitably, we become much, much more than a vendor. We become part of how they manage their business and a partner in growing the category with them. We've absolutely earned our right to lead. Over more than 4 decades, Mission has invested in nearly every capability required to build and serve the modern avocado category. That includes the physical network, but also the relationships, the knowledge and the consumer insight developed through years of operating experience. And those capabilities are not limited to fresh avocado. We can apply the same playbook in international markets, extended into Prepared Foods and bring it to adjacent categories such as the mango. That gives Mission multiple paths to grow from a platform already in place. We have earned this right to lead, as I said, and our responsibility now is to use that leadership to drive stronger returns. That brings us to chapter two: Built to compound. Our ambition for 2035 is $4 billion in sales and $450 million in adjusted EBITDA. That means we intend to double sales while tripling our earnings power. Mission is a growth company, and our next chapter is about converting our infrastructure and our capabilities into greater earnings power and compounding shareholder returns, which is what I mean when I say we are built now to compound. Our shareholder return model is built around 4 connected levers, and the 5-year goals on this page show the outcomes we are targeting from each one of them. Bryan will eloquently take you through those goals and the underlying assumptions a little later in the presentation. At a high level, organic growth creates the opportunity. Margin expansion increases the earnings value of that growth. And strong cash conversion gives us greater financial capacity. Disciplined capital allocation then determines how effectively that value compounds for our shareholders. These are enduring management principles and they're priorities for this framework. We will use these to measure our progress over the next 5 years. To deliver a long-term ambition such as that and the 5-year goals that accompany it, the most important element is always the people behind it. And it is this team. I firmly believe we have the right one in place and the best team in the industry. This leadership group combines deep avocado and fresh produce experience with the capabilities this next chapter requires, including Prepared Foods, commercial execution, international market development, finance, tech, strategy and integration. Just as important, we are aligning around one way of operating. Each leader has a very clear role in building one commercial organization, one connected operating network and a performance culture grounded in measurable outcomes. This is a team that understands the business we have built, but brings the capabilities required to unlock more value from that business. Our reportable segments show how we report our financial results. Our strategic platforms show the roles our businesses play in Mission's growth and value creation strategy. At the center is our avocado growth platform, fresh avocados in the U.S., fresh avocado in our international markets and our Prepared Foods segment. These businesses serve different markets and occasions, but they build on the same category leadership, supply network, customer relationships and operating capabilities. Together, they give us multiple avenues to extend our leadership across the avocado space. Mango is our category extension platform. It allows us to apply capabilities we already have in an attractive adjacent category. Our established platforms include International Farming, Blueberries, tomatoes and papayas. Each plays a distinct strategic role and is positioned to generate healthy cash flow. We believe this is the right portfolio at this time in history for Mission, concentrated around our [ robust ] competitive advantage, with multiple paths to grow and a clear role for every business. Our growth framework is where we define the roles of our platforms. First, we win in avocado across all strategic geographies. That means growing faster than the market while maintaining discipline around margin and returns. Second, we cultivate the next growth platform through category expansion. We can build the mango business deliberately, use infrastructure and capabilities already in place, and increase investment as customer demand and financial returns prove themselves out. Third, for our established platforms, we focus on maintaining strong cash generation to help fund growth and cash returns. Now past their heavy investment phase, our International Farming and Blueberries business are expected to generate more cash to support growth into the future, reduce leverage and return capital to shareholders. Although much smaller, the tomatoes and papayas are also expected to contribute to this end. Taken together, this framework gives each platform a clear role that drives clarity internally and helps us prioritize our resources. Calavo strengthens that framework by adding scale and capabilities where Mission already had the strongest right to win. Calavo was much more than a bolt-on acquisition. It was a highly complementary, adjacent business with meaningful overlap across all functions. The combination expands our sourcing and packing capabilities in both Mexico and California. It adds important grower relationships and increases the supply availability to serve our combined customer base. It also broadens what we can offer to our everyday customers. Prepared Foods gives Mission an established position in guacamole and related products, while tomatoes and papayas provide additional opportunities within existing customer relationships. By bringing the 2 platforms together, we have multiple opportunities to lower costs, improve our network utilization and build a more productive company. We are already making really good progress. We moved quickly to pool our resources around our supply, giving our teams a broader mix of fruit and sizes to match against customer programs, while -- all while allowing more volume to move through our own packing infrastructure. As we announced on our most recent earnings call, the early integration work gives us the confidence to raise our annualized synergy target from $25 million to more than $30 million. And we've already seen a path to reducing our leverage ratio by 0.5 point or more by the end of fiscal year '27. These wins were largely enabled by the integration efforts already underway. The first phase is focused on early actions and optimizing where there's clear overlap. As mentioned, we already pooled supply and we also closed our Temecula operation and designed the future state U.S. distribution footprint, which was recently announced. The next phase is operationally more complex and includes physical network changes and ERP cutover. We are sequencing that work thoughtfully and carefully with business continuity as the priority and the primary requirement to advance from phase to phase. The final phase extends common systems and processes across the broader organization, including our Mexican operational footprint and our Prepared Foods teams. As all of these actions are completed, we still expect savings to build towards our run rate of more than $30 million within 18 months of our close date. Our increased synergy estimate reflects greater-than-expected savings from price harmonization efforts on our sourcing side as well as the elimination of some unnecessary broker services. It also includes savings opportunities we've identified through optimizing our combined distribution and operating network. By consolidating overlapping infrastructure, improving network utilization and moving more volume through our own facilities, we expect to contribute approximately $5.4 million worth of annualized savings. We believe there is still potential upside to our estimates. The $30 million continues to reflect the opportunities that we have high confidence on execution and we have a clear time line to deliver. We expect these savings to build as the integration progresses and reach our full annualized run rate within 18 months, as I stated earlier. Between now and then, expect small contributions in Q4 of this year, and our priority is to capture that value in a disciplined sequence while protecting customer service and business continuity. Our long-term strategy focused on compounding value growth only earns credibility through execution. Our teams have performed exceptionally well through a demanding period, managing a dynamic avocado market, completing a significant Peru season and advancing the Calavo integration, all while continuing to serve our customers and our growers. That execution gives us confidence in the outlook that we are reaffirming today. We continue to expect second half fiscal 2026 adjusted EBITDA of $84 million to $88 million. including $52 million to $55 million in the fourth quarter. We are also reaffirming our Mission Peru exportable volume outlook of 120 million to 130 million pounds for the second half, including 67 million to 77 million pounds in our fourth quarter. As I said, Mission spent 40 years building the supply, infrastructure, customer capabilities and operating knowledge required to lead the avocado category. Built to compound is about using that foundation more effectively. The remainder of today will show you how we intend to deliver our growth platform over the next 5 years and how we'll work to translate that growth into shareholder returns. Brooke will begin with fresh avocados, the durability of the demand runway and why Mission is positioned to grow faster than the market. Ladies and gentlemen, Brooke Becker, our Senior Vice President of Sales & Marketing.

Thanks, John. Good morning, everybody. We're excited to have you here. I have the privilege of leading sales and marketing for Mission produce, which means I spend most of my time thinking about 3 things: the consumer, the customer and the fruit, and a little bit more. In this business, you need all 3 to line up. U.S. avocado is where mission started, and it remains by far our largest business. It also is a remarkable category. Avocados have grown consistently for decades, and we believe the category still has a long runway ahead. The theme for this business is secular tailwinds, enduring growth. Avocados have moved from a seasonal specialty item to an everyday food, but the category is still adding consumers, occasions and points of distribution. I'm going to cover 2 questions. First, why can the category keep growing? And second, why is Mission positioned to grow faster than the category. Before we dig in, let me put the scale of the category and our current position into perspective. The U.S. avocado category represents $5.9 billion of sales in 2025. Following the Calavo combination, our estimated share is 27%. Scale matters in this category. It gives us access to more supply, more customer touch points and more information about how the market is moving. Our growth thesis is focused on 3 things: a category with durable tailwinds, experienced talent that understands how to manage a volatile fresh market, and capabilities to help customers grow profitably. Food trends come and go. Avocados continue to stay relevant because its nutritional benefits aligned with a wide range of food and wellness priorities. A serving of fresh avocado provides good fats, fiber and a broad range of nutrients, in a simple, recognizable food. That nutritional profile keeps avocados relevant as wellness priorities evolve, from heart health and plant forward eating, to newer behaviors, such as protein forward meals and greater attention to nutrient density among GLP-1 users. The nutritional proposition is also being reinforced by updated federal guidance. Avocados now qualify for FDA's healthy claim, providing further validation of their role in health for diet. This all creates durable demand -- this all creates a durable demand engine. Nutrition helps bring new households into the category, gives existing consumers more reasons to purchase and allows avocados to participate in new eating occasions as well as habits evolve. The trends will change; avocado's nutrient [ stance ] makeup will not. That is why we believe nutrition will remain one of the category's most dependable drivers of long-term growth. Demographics are another tailwind, beginning with the consumer group that already understands and values the category exceptionally well. Hispanic households account for 30% of avocado spending, reflecting average spending that is 55% above the broader market. Their total category spend has also increased 31% over the last 5 years, outpacing market growth. This creates a meaningful structural tailwind, a large and highly engaged consumer group that is expanding its avocado consumption and growing faster than the overall population. Avocados are also becoming part of how the next generation eats, with Gen Z representing a rapidly growing share of new category buyers, which has increased sevenfold. That matters because avocado is entering consumers' routines early. Younger adults are forming households, raising families and introducing avocados across meals and occasions. Households with children are already amongst the category's most engaged and valuable buyers. When a food becomes established in the household early, it could remain relevant for decades. That gives avocado a powerful demographic advantage. The category is recruiting younger consumers today and creating a large base of long-term buyers for tomorrow. Recruiting the next generation of consumers is important, but the real value comes from what happens next. Once consumers enter the avocado category and begin building it into their routines, they tend to stay, buy more and become more valuable over time. In a recent study, we found new avocado buyers spent approximately $27 in the first year, increasing to more than $44 in year 3. That represents more than 60% growth in the value of these buyers over the first 3 years in the category. This is a key demonstration of why we've seen such durable growth for 40 years. And this data is particularly relevant this year where we've added more than 1 million new households to the category. That growing and increasingly volume consumer base creates opportunities to serve different needs within the category. Organic shoppers are one important example, attracting a particularly engaged shopper and giving retailers another way to drive incremental growth. Over the last 4 years, organic avocado sales increased 26%. That performance tells us consumers are actively seeking an organic option when it is available and well executed. Despite that growth, the segment still appears underdeveloped. Organic represents a smaller share of avocados sales [ that have been ] produced broadly. Even a partial closing of that penetration gap would represent meaningful upside for the category. That opportunity is especially relevant to retailers. Organic avocado carries a higher price point, which can increase the value of the consumer basket. More importantly, it helps retailers attract and retain the organic consumer, a shopper who spends considerably more across the store than the average consumer. A strong organic program creates value beyond the individual item. We talk a lot about retail, but foodservice is also an important source of category demand and a meaningful channel for Mission Produce. Avocados now appear across the restaurant landscape, from quick service to fine dining, where penetration ranges from 29% to 65%. Every major restaurant channel has increased avocado penetration over the last decade. That expansion matters directly to the category. More restaurants offering avocado across more menu items and dayparts means more avocado volume moving through food service and more demand for Mission and other industry suppliers to serve. Restaurants are also expanding how consumers experience avocado. Consumers now encounter avocado sliced, diced and spread across sandwiches, bull, salad breakfast items and shareable dishes. That versatility allows the category to participate in more restaurant occasions throughout the day. And that brings us to 2 occasions where we believe avocado still have substantial room to grow. Breakfast and snacking are 2 very large eating occasions in the U.S., but consumption remains a fraction of established alternatives such as bananas and yogurt, showing meaningful white space. What made those foods so successful in breakfast and snacking also explains why avocado fits. Consumers want foods that deliver nutrition, taste, versatility and natural portion control. The consumer proposition is already there. Yogurt demonstrates how powerful that shift can be. Its consumption expanded over several decades, and it becomes a familiar breakfast and snack staple. Even a portion of that growth for avocados within these 2 occasions would add meaningfully to the total demand. Australia shows that is not theoretical. Avocados have been deeply embedded in breakfast culture there, demonstrated what can happen when availability, familiarity and restaurant adoption reinforce one another. We view breakfast and snacking as upside to our base case. But the potential contribution to the category is substantial. The category has a long runway across consumers, households and eating occasions. Mission's opportunity is to capture more than its fair share of that growth. And our track record shows that we have consistently done that. From fiscal 2018 through fiscal 2025, our estimated U.S. volume share increased more than 200 basis points, despite normal year-to-year movement in a fresh category. As many food companies are competing for single-digit share gains in the declining categories, Mission is averaging 30 basis points of share gains annually, for an extended period of time. Fresh produce is never a straight line. We will see strong seasons and difficult ones. But over time, when we provide customers with dependable supply, good decisions and strong execution, we win. That performance is not created by a logo, a building or a spreadsheet. It starts with the people who know how to read the market and make good decisions every day. Mission's history of winning begins with its people. I am an example of that. I started my career here as an intern, roughly 16 years ago. I learned the business through a series of operating and commercial roles. And today, I lead our Sales & Marketing team organization. Developing talent from within is how Mission has built generations of leaders who understand this business from the ground up. Our preferred model starts early. We recruit from colleges, bring people into the business and develop them through role-based learning. They learn alongside seasoned leaders, move across markets and responsibilities, and build relationships inside and outside the organization. That creates something unique: people who understand both their role and how decisions move throughout the entire system. That depth matters because this category changes every single day. But our people are able to help Mission, earn supply and protect the customer with their deep experience. Dependable customer supply begins with dependable partners to growers. We earn fruit by paying fairly, buying consistently and help growers -- helping growers improve productivity. Our California partnership shows what that can mean. In this program, Mission's helped growers increase yields to 17,000 pounds per acre on average compared to the industry average of just 7,000 pounds. For growers, better yields improve their return. For Mission, creating that value builds the trust and loyalty that help us become the buyer of choice. We apply that partnership model across our global sourcing network. Including Calavo, Mission now sources across more than 20 countries, giving us greater breadth across seasons, origins, sizes and supply conditions. That breadth is what turns grower relationships into dependable customer supply. When conditions change in one region, our teams have more options to source the right fruit and balance the available size mix throughout the year. In short, grower trust earns us supply, and our multi-origin network turns that supply into consumer reliability. Our own production gives Mission a differentiated way to help consumers grow in the category. Because of direct visibility into a meaningful portion of the crop, we can work with retailers before the season begins and build a longer, more coordinated program. In one recent example, weekly sales velocity during a coordinated Peru program was 32% higher than the preceding Mexico program. The takeaway is the value of planning and consistent execution, not that one origin is inherently better than the other. That is how vertical integration can help Mission outperform. We use own supply to create growth for the customer, then earn a larger role in their business. AvoIntel is Mission's category management platform, and we're the only ones that provide anything like it in the avocado category. It combines shopper and market data with our avocado expertise to identify growth opportunities for customers. Our team then helps the customer act on those insights. In one example, we identified an opportunity to launch a ripe program at a large national mass retailer. Upon execution at a portion of the customer stores, the program delivered 13% increase in sales, compared to a flat sales growth in stores without the program present. In a separate category captaincy engagement, the customer sales growth exceeded the broader market by 9 points. AvoIntel helps us outperform the market through the insights that we deliver to customers. Over the next 5 years, we expect the category to continue its multi-decade track of mid-single-digit growth. Our target is to grow our business at mid-single-digit rate above the growth of the market. We believe these capabilities shared today give us the ability to continue expanding our share as we have been doing for years already. Together, the category opportunity and Mission's capabilities support 3 takeaways. First, the U.S. avocado is one of the most enduring category growth stories in food. Demand has expanded over many decades and across changing consumer preferences and market conditions. Second, the category continues to benefit from both secular and emerging tailwinds. Its established nutrition and demographic drivers are being reinforced by new consumers and expanding eating occasions. Third, Mission has the capabilities to outperform the market. Our supply platform, experienced people and customer-focused capabilities position us to help grow the category and continue to gain profitable share. The U.S. remains our largest avocado market, but the growth opportunity expands well beyond it. International markets represent another important avenue for Mission to grow its avocado leadership. Our addressable markets across Europe and Asia represents an estimated $6.4 billion in sales, while Mission's current share is approximately 3%. That gives us meaningful room to grow. The opportunity rests on 3 things. Consumption remains underdeveloped in many priority markets. Mission already has established local platforms from which to expand. And our U.K. experience gives us a repeatable playbook for converting global capabilities into local growth. International avocado is ultimately a local execution business. Customer needs differ by market, so growth depends on putting the right people and infrastructure close to the customer. The gap on this page is striking. Consumers in the United States eat approximately 10 pounds of avocados per person each year. Consumption in several of our priority international markets remains between roughly 0.5 and 4 pounds. Even modest per capita gains across large populations can create substantial incremental demand. We also know that avocados can achieve much greater scale. Higher consumption markets demonstrate the category's headroom when consumers have dependable access to quality fruit along with supportive retail and foodservice operations to help support growth consumption. Development will look different in each market. Europe is farther along while several Asian markets remain at an earlier stage of adoption. That gives Mission different ways to grow across the portfolio. Our international opportunity is supported by a foundation we have built over decades. Mission already holds meaningful positions across Europe and Asia, giving us established routes to market in several of the world's most attractive avocado regions. These markets also provide a balanced growth portfolio. In more established markets, we can deepen customer relationships and gain share. In earlier-stage markets, we can help develop consumption as adoption grows. The key takeaway is that Mission has already completed much of the foundational work. We have the local presence and operating experience to scale from here. The U.K. shows that Mission can accomplish when we bring our full avocado platform to a market with room to grow. Over the last 3 years, our U.K. avocado volume increased nearly fourfold. That growth provides a tangible proof point for our international strategy. We earn the growth by establishing a strong local operation around the needs of the market. The result is a business with meaningful scale and a platform that can support continued development. The next few slides explains how we did it. We put experienced leadership close to the customer. We invested in local capabilities that could scale. And we built our offering around what retailers need to grow the category. That is the Mission playbook in action. The U.K. demonstrates how our global avocado expertise can be translated into local growth, and it gives us a model we can apply across all other priority markets. International growth requires local judgment. Consumer expectations differ by market. Retail structures differ by -- in the right operating model, and one country may not translate directly to another. We have an experienced local team that understands those differences. Across the U.K. and Europe, the leadership group brings deep experience in sourcing, ripening and commercial execution. The team combines long-standing grower knowledge with strong retail relationships. The local expertise is connected to Mission's broader and global platform. Our international teams can access the company's sourcing network and operating knowledge while staying close enough to the customers to respond to the needs of each individual market. That combination is important. The global platform provides reach. The local team turns that reach into dependable execution for our customers. We have invested in purpose-built operations near major import gateways in the U.K. and Netherlands. That location matters because it keeps us close to incoming supply and close to the customers we serve. The Dartford facility gives us an integrated platform for ripening, packing and distribution in the U.K. Our Netherlands operation provides a similar hub for Continental Europe. Together, these facilities bring the critical steps of the supply chain under one coordinated operating model. Fruit can arrive from multiple origins and be tailored locally to the customers' specifications. Technology strengthens that model. Advanced grading and ripening tools provide better information about the fruit moving through the facility and support more consistent execution. The strategic values is that these facilities move Mission closer to the customer, increase our control over execution and create an operating base that can scale with demand. Retailers want a supplier that they can rely on, especially in a category where supply and product condition can change very quickly. The first requirement is dependable fulfillment. Mission's global sourcing network gives the local team more options to manage supply, while the regional facilities allow that fruit to be delivered through a local program. The second requirement is ripeness. A customer may be trying an avocado for the very first time, and experience needs to be right. Our ripening capabilities help retailers put a more consistent product on the shelf. The third requirement is trust. International customers value a partner that understands the category and it can execute to their specifications week-over-week. When those elements work together, the retailer can manage the category with greater confidence and the consumer receives a more consistent experience. That is how Mission develops the category locally. We make a complex global supply chain easier for the retailer to manage and the product easier for the consumer to enjoy. And because the underlying retailer needs are consistent across markets, the playbook is repeatable. We can bring Mission's global supply and category expertise into a market, build the local capabilities around the customer and scale the opportunity as it develops. Over the next 5 years, we are targeting high single-digit sales growth in international avocados, above the expectation for the market. The takeaways summarize the opportunity. First, avocado consumption remains underdeveloped across several large international markets. Even modest per capita gains can create meaningful demand over time. Second, Mission is scaling from an established foundation. We already have local teams, customer relationships and operating infrastructure in priority markets. Third, we have a repeatable playbook for turning that foundation into growth. The U.K. case study shows how Mission can bring global supply and expertise into a market, build the local capabilities around the customer, and scale as the category develops. The details will differ by market, but the playbook travels. That gives us confidence in our ability to grow international avocados faster than the market over time. The next part of our avocado growth platform extends the category in a different direction. John will take you through that.

Great job. Before I get into the other areas of the business, just some comments about this category. It is incredibly exciting. You've got a category with tailwinds that, I would offer, is very, very difficult to find in the food industry right now. You've got a product that is incredibly nutritious and engaging and emotional for the consumers who love it every single day and the new ones that are coming into it every single day. You've got a company that has been built over 40 years to be the leaders in that space. And what Brooke just walked us through are the absolute opportunities that we're confident in, in driving over the next 10 years and continuing to be the leader as this category grows to new heights, not only here in the U.S. but across the world. There's a couple of other things I'll walk you through. But at our core, this is what we do and this is what we're proud of and this is what we're excited about. So we're excited about that piece of the business as I think I'm clearly explaining. I'm now going to take you guys through the remaining platforms of the business, beginning with the Prepared Foods piece. Of all the opportunities we'll discuss, this is the most direct extension of that category leadership Brooke just walked through and one of the most meaningful opportunities to improve the growth and earnings profile of this company over time. We describe Prepared Foods as a higher-margin avocado platform. It's exactly what we see it as and that's exactly what it is. It represents an opportunity to capture more value from the avocado ecosystem that we're already a major player in and already have the right to win in. The global processed foods -- processed avocado, excuse me, market represents approximately $2.7 billion in opportunity. This includes guacamole and mashed avocado as well as oil, frozen avocados, avocado sauces, et cetera, with guacamole-related products making up more than half of that market. Our current share is about 3%. It gives us a meaningful starting point, but also considerable room to grow. The growth drivers are convenience, product application, versatility and many of the same drivers that Brooke already described for winning in the fresh avocado space. Processed avocado category sales have generated a 7% compound annual growth rate over the last 5 years. And the margin profile? Materially different than our core business. Prepared Foods is estimated to generate approximately 1,300 basis points more gross margin than our legacy Mission business. Every incremental dollar of Prepared Foods can contribute substantially more gross profit than any dollar in gross -- in fresh in sales growth -- fresh sales growth. That means our platform becomes -- that means as this platform becomes a larger part of mission, it over-indexes on consolidated margins for the company. The category's attractive sales growth is driven by a robust expansion of the consumer base. U.S. guacamole household penetration increased from 36% in 2020 to 41% in 2025, which equates to more than 1 million new households entering the category each and every year. That's important because the category is growing through consumer recruitment, not through pricing or heavier purchasing by an unchanged household base. And at approximately 41% penetration, we consider that established, but there's a lot of room to grow. The fresh avocado tailwinds that Brooke described carry directly into the Prepared Foods business as well. Consumers are drawn to avocados for Nutrition, which is the #1 purchase driver of fresh avocado. The demographic drivers also carry over. Processed avocado appeals extends across the consumer groups, including Hispanic and younger consumers, while restaurant adoption continues to make guacamole and avocado-based products a more common ingredient in its everyday meals. As Brooke mentioned, breakfast and snacking are a further opportunity. Prepared Foods can make avocado easier to use in this occasion where time, portability and portion control absolutely matter. Which brings us to a distinct advantage of its own convenience. Prepared avocado solves several practical consumer problems all at once. There's no cutting, no ripeness, no decision, in regards to you putting a half unused piece of fruit in the refrigerator. The lifestyle data reinforces the need for this. 66% of married parents are both working. 77% of meals are prepared in less than 15 minutes. I think I can do many of them in 5 or 6. And on-the-go-stack, it gets increased 12% year-over-year. These behaviors favor foods that are simple, fast and portable. Prepared avocado allows the category to participate much more easily in everyday meals and snacks, not just planned occasions. Processed avocado's historical center has been guacamole as a dip, often tied to gatherings and events. That remains important, but it is only one way consumers are experiencing the product. The broader opportunity includes everyday condiments, spreads, sauces, dressing, frozen products and avocado pulp. Different formats can also open on-the-go consumption: lunch boxes, meal prep and food service applications. Innovation gives us several ways to grow at once: increased frequency among existing consumers, recruit new consumers through experience and create additional shelf and menu placement over time. Our squeeze pouch platform is a good example of what happens when product and packaging innovation address consumer needs. The fresh squeeze pouch addresses barriers that have historically limited guacamole. It stays fresh after opening, reduces mess and allows consumers to use only what they need. That makes guacamole easier to use as an everyday product, expanding the condiment beyond the traditional dip occasion. We currently offer 4 varieties in this space, including 2 guacamoles: avocado and sea salt, and my personal favorite, if you don't get a chance to try it, I think you'd be upset, the avocado and sour cream. It's absolutely wonderful. The latter pairs avocado with that familiar creamy flavor that works across meals and snacks, with the goal of expanding consumption across occasions and frequency. The early response has been nothing short of exciting. Distribution and sales are growing while repeat purchase is showing the clearest validation. During its particular measured period, the pouch had the highest repeat rate among guacamole brands at a particular retailer. Trial gets the product into consumers' hands and repeat, of course, tells us if they value the proposition or not. The product also demonstrates Mission's broader innovation capability. We identify a consumer need, we develop a differentiated solution and we bring a target through an existing manufacturing platform. Prepared avocado has considerable white space. We intend to lead innovation in this category just as we do in our fresh space, with products that simplify use and create more reasons for the consumer to consume it. Please remember to take a sample as you leave today. Mission already serves most of the largest fresh avocado customers in retail and foodservice. Those relationships give us a strong understanding of how customers manage the category and where Prepared Foods can add value. That creates a natural path to growth. We can introduce Prepared Foods through relationships where Mission already has trust built over decades of relationships. Mission earns a larger role with the customer and participates in more of the avocado category through this process. Mission now operates approximately 100,000 square feet of manufacturing, capable of supporting $140 million in annual sales, with limited incremental capital required to add capacity over time. We also bring 1 million square feet of owned cold chain distribution across our network. Most U.S. retailers are located within 8 hours of our facilities. That combination is a significant advantage. Prepared Foods can draw on our supply and leverage our distribution network that already reaches all of our leading customers across this country. That gives our Prepared Foods segment a ready-made foundation for growth. We have spent decades studying how consumers buy and use avocados, including the occasions that drive purchase and the barriers that hold the category back. We have also demonstrated an ability to turn those insights into consumer growth, and customer growth is on top of that. We've also demonstrated an ability to turn those insights into customer growth every day. As we discussed in the U.S. avocado section, 1 retailer under Mission category captaincy outgrew the broader market by 900 basis points. Those category management capabilities can travel. In the next section, you'll see how we apply them to mangoes. Prepared Foods gives us an opportunity to use our insights on the avocado consumer to guide innovation and improve category performance over time. As we've already said, when we help our customers grow the category, Mission becomes a more valuable partner. That strengthens our position in the account and creates more opportunities for us to grow within that customer. Over the next 5 years, our organic growth sales target is high single-digit sales growth for the Prepared Foods segment, above the market's expected rate. The 3 things we want you to take away from our Prepared Foods discussion is, number one, this is a high-margin, growing category with meaningful consumer runway. Number two, Mission is advantaged from fruit to finish product through sourcing, manufacturing, distribution, consumer insights and innovation, giving us a distinct right to win in this space. And finally, Mission's infrastructure and customer reach can amplify the Prepared Foods business capabilities, supporting a 5-year goal to grow above the market at high single digits. Thank you. We're going to take a 10-minute break and we'll be right back. [Break]

We'll give everyone a second to collect themselves and then we'll get rolling. I'm like 30 seconds past when I said I would start and it's making me feel uncomfortable. All right, Andrew, you got the clicker?, Thank you. All right. Let's jump into the mango business. The mango side of the business gives us an opportunity to build the next fresh category, while the U.S. consumer adoption is still very, very early. Our theme for this platform is emerging category in a development market. The U.S. mango market represented an estimated $900 million addressable market opportunity in 2025. Mission holds a 6% share today. Going forward, we need to help an established but underdeveloped category continue to scale. Three factors underpin our excitement and confidence in this opportunity: U.S. adoption remains relatively low to global consumption; mango supply can continue expanding; and the fruit requires many of the same high-touch capabilities that Mission has already spent decades developing. Mango is one of the world's most widely consumed fruits, while the U.S. adoption remains low, and that gives us confidence in the category's long-term potential. U.S. consumption is approximately 4 pounds per person, compared with 11 pounds across major global markets. In other words, U.S. consumers eat only about 1/3 as much mango as the rest of the planet. The U.S. category is already moving in the right direction. U.S. mango retail sales grew at double digits from '21 through '25, demonstrating strong consumer adoption from today's relatively low base. We expect continued growth as more consumers encounter, experience and get used to the mango. Supply also has room to expand as demand develops. Mango is not an easy product. It's a technically demanding product. Variety, origin, maturity temperature, how you handle the fruit all affect how the fruit ripens and, ultimately, the experience that consumer receives when they cut into it and enjoy it at home. That operating challenge fits us pretty well at Mission. We have a tremendous temperature-controlled chain, hands-on quality processes, science-based ripening capabilities, and a distribution network designed to move perishable products quickly and consistently. The important point is that we can adapt our systems, people and infrastructure already used to support the mango activities. Mission is already bringing innovation and insights to the mango category. Brooke talked about innovation, I talked about innovation on the prepared food side of things, and bagged mangoes are a great example of what we've already done in this space. We identified demand for a convenient value pack and helped bring that format to market. In one retailer program, bagged mango has increased category volume by 33% without reducing bulk mango sales. And of course, the bagged mangos are now commonplace across the category. If you shop the category today, you'll more often than not see a bagged mango offering, whereas if you were to shop the category 2 years ago, you would not have seen a bagged mango offering. Mission uncovers these insights. We led that innovation. And as a result, the results show what our insight process can accomplish: clearly identifying the opportunity with the consumer, creating a practical retail solution and helping the customers grow that space. Now one interesting note is those mangos that we were selling and continue to sell were a different-size variety that had commonly occurred during that time of the season. So we were actually offering our growers an incremental opportunity as well. So we are moving mangoes that traditionally didn't get moved during that time of season. As you go through seasons and as you go through space, or with the customers, often, they have specific requirements on sizes they like. In the spring, I want a bigger mango, in the fall, I want a smaller mango, right? It just depends on how they see their consumer and what the demographics are doing in their stores. So we not only brought innovation to the consumer and to the retailer, but we brought innovation to the grower and the farmer as well at the same time. We're also applying that same approach to differentiated supply, again, focusing on growers. Our organic California [ Keep ] program gives retailers a premium locally grown offering and gives mission another way to develop the category. We have a history of leading with insight and innovation in fresh avocados, and we're bringing that same leadership to the mango space, creating new ways for customers to grow and positioning Mission to participate and lead in that growth. Over the next 5 years, our goal is to grow the U.S. mango sales at high single-digit rate and again above the market. Let me close with 3 points that I want you to remember about mango. First, mango is a growing category with substantial U.S. consumption headroom. Second, mango is a natural fit for mission. It requires sourcing, ripening, quality, cold chain, customer service capabilities that we already use day in and day out. Third, we have tools to help the category scale. Product innovation and our insights can help make mango easier to buy, improved customer execution and support missions goal to grow faster than the market at an attractive return. We really believe mango illustrates how we can extend Mission's capability into new category without recreating the entire platform. We will support this opportunity as the market develops and scale our investment as returns are proven year-over-year. Turning to our established platforms. We are managing what we call our established platforms to deliver strategic value to the market and our supply chain: maintain solid operating performance, and most importantly, generate cash. Our International Farming provides strategic supply and greater visibility into fruit quality and timing. The segment principally operates orchards in Peru and Guatemala, and most of the fruits sold through our marketing -- is sold through our Marketing & Distribution businesses. We've invested substantial capital to develop the orchards and supporting infrastructure. That heavy investment phase is now largely behind us. Peru is an established commercial operation, while the Guatemala farm is expected to begin commercial production in the next -- in our next fiscal year 2027. That changes the financial profile of this business. Our focus now shifts from building the platform, to improving productivity and generating cash from the capital that's already been invested over the years. As yields improve, more fruit moves across a largely fixed agricultural and infrastructural base. That can lower unit costs, increase utilization and strengthen cash returns year-over-year. Our Blueberries operation is -- sorry, our Blueberries business operates in Peru alongside many of our avocado operations, allowing the 2 crops to share portions of the same agricultural and operating infrastructure. Substantially, all of our production is marketed through our exclusive relationship with Driscoll's. That gives us an established router market through one of the most recognized names and berries, while allowing our team to focus on producing high-quality fruit. Blueberries also complement the avocado season, extending the use of our people and infrastructure across more of the year. Our low single-digit sales growth outlook reflects a relatively stable acreage plan rather than our view of the category where consumer demand remains robust. From here, the opportunity is to produce more from the acreage that's already in place, generate stronger cash return and leverage the operating infrastructure that we're already working through. Our Hawaiian papaya program gives Mission a truly differentiated product and a unique offering for select fresh produce customers. It serves an established market niche and broadens the value we can provide within those relationships. Tomatoes also play a focused role in our portfolio. We will support the business where customer demand and market economics can generate attractive returns with a disciplined approach to both capital and scale. We manage both of these businesses against the same standard: simply serve the customer well and generate cash without adding unnecessary complexity. Together, both the tomatoes and the papaya expand our customer offering and contribute to cash that can be deployed in emissions higher growth platforms. These are good businesses with distinct strategic roles. First, the International Farming strengthens our supply visibility and supports customer programs. Blueberries add profitable complementary crop and increases leverage of our Mission Peru's operating capabilities. Tomatoes and papayas provide smaller, focused customer offerings that increases our basket with our customers. Second, the objective is dependable performance. Our 5-year organic sales growth target for the group is low single digits. Third, the cash matters because Mission has significant growth and shareholder return ambitions. With moderated capital requirements for these platforms and productivity improvement, the cash they generate can support investment in avocado growth, Prepared Foods and mangoes, reduce leverage and contribute ultimately to shareholder value. Let me step back and summarize the portfolio we've laid out. We intend to win across avocado. We intend to build the Prepared Foods platform into a meaningfully higher-margin platform and develop mangoes long term as the next long-term fresh avocado category. Our established platforms have a different role: maintain performance, improve returns and generate cash. Together, our businesses give Mission multiple avenues for growth, margin improvement and cash generation. Bryan Giles will now take you through how those operating platforms translate into the consolidated financial model and capital allocation. As I said, he's going to do so eloquently as well. Bryan?

My glass is on here. Okay. Thanks, John. I've been with Mission through several important stages of the company's development, and I believe this is the most exciting point in that journey. We have a larger platform, a broader portfolio and more drivers for earnings growth than at any point during my tenure. The last several years required substantial investment. We built farms, packing capacity, distribution infrastructure and international operations. We've now added Calavo, which brings greater scale, Prepared Foods capabilities and meaningful synergy opportunity. My objective is to bring all that together financially. I'll summarize our sales growth plans, share where margin expansion comes from, discuss how we expect earnings to convert into cash, and how we intend to deploy that cash to create value for shareholders. Let me start with our shareholder return levers. John introduced this framework earlier, and I'm going to take you through the financial mechanics behind it. The model begins with organic growth above the markets in which we compete. We then expect to convert that growth into stronger earnings through margin expansion. Our target is approximately 60 basis points of margin expansion annually over the 5-year period. The final 2 elements are cash conversion and capital deployment. We're targeting free cash flow conversion above 90% over time. And we'll allocate that cash to M&A and share repurchases based on returns and cash outlook. The growth rates on this slide summarize the platform targets you heard through the presentation. Putting this back into reported segment terms, Marketing & Distribution is expected to generate mid-single-digit organic sales growth, in line with the growth expectations for the U.S. avocado market, and supplemented by high single-digit growth rates in international avocado and mango markets. Prepared Foods is expected to deliver high single-digit growth, and we expect low single-digit growth from International Farming and Blueberries. When we bring this portfolio together, our total company 5-year target is mid-single-digit organic sales growth. Our 5-year plan targets approximately 3 points of margin expansion or about 60 basis points per year, and there are 4 primary drivers. Prepared Foods carries a materially higher gross margin profile than Marketing & Distribution. As that business grows, it will pull up Mission's consolidated margin. Calavo synergies is the most execution-dependent lever. The integration plan is underway, and we've increased our annualized synergy estimates from at least $25 million to more than $30 million. We expect the margin benefit to reach its full run rate by the end of fiscal 2027, early in the 5-year horizon, which means 2028 is expected to reflect a full year of synergies in its results. The remaining opportunities come from increasing the productivity of the platform already in place. Our plan is for sales to grow faster than SG&A, while additional volume improves utilization across the supply chain, including our farming operations. Importantly, this is exactly how a growth company expands margins: margin mix, M&A and leveraging its cost base through better top line growth. Moving on to cash flow. Historically, our free cash flow conversion was constrained by substantial investment in International Farming, Blueberries, packing houses and supporting infrastructure. And in some cases, we built well ahead of the volume, further elevating an already demanding capital expenditure plan. We now have a well-capitalized asset base with available capacity in pockets, allowing us to spread out maintenance and capacity CapEx. Going forward, this is expected to result in lower capital intensity. And combined with earnings growth and margin expansion, our free cash flow generation is expected to improve. Our target is greater than 90% conversion of net income to free cash flow. Given the regular movement in category prices and sales growth, we intend to measure conversion over a multiyear period to better convey our progress. Our improving cash profile gives us more capital allocation flexibility. Our framework determines how we will use that flexibility. Our first priority is to maintain and strengthen the core through CapEx, and we target 3% of sales. Our second priority is to reduce leverage to under 1.5x debt-to-EBITDA. Beyond that, we will evaluate disciplined M&A and opportunistic share repurchases. Let me take these priorities one at a time, beginning with the capital required to maintain the platform and support organic growth. We see CapEx as one of the most important and strategic capital allocation priorities. Investments that protect our people, consumers and communities will always receive priority. We will also invest thoughtfully to maintain reliability and performance of our infrastructure. For growth and cost savings initiatives, we will prioritize projects based on their lifetime return profiles and the timing of ROIC accretion. Going forward, we expect a lower level of capital intensity as we've already discussed. Our long-term capital expenditures target is approximately 3% of sales, which is 2 points lower than the 2020 to 2025 average and up to 5 points lower than our peak investment years. Our leverage has increased following the Calavo acquisition. That was expected, but the balance sheet remains manageable. But reducing leverage is an important near-term priority. Our target is net debt to adjusted EBITDA below 1.5x. We expect a large portion of that improvement to come through growth in adjusted EBITDA, supported by synergy realization and base business execution. We also plan to use cash to reduce debt. A healthy balance sheet gives us optionality. It allows us to manage agricultural and working capital cycles, continue investing in the business and act when an attractive strategic opportunities available. As leverage moves toward our target, M&A will remain part of the strategy, within a disciplined and returns-based framework. Organic execution is the foundation of our 5-year plan. M&A is an important tool to accelerate that growth where it makes sense. Within categories where Mission already has a right to win, an acquisition can help to add scale, supply customers or capacity more efficiently than building from ground up. In a new adjacency, the transaction must add a capability or early-mover advantage that Mission does not already possess. In every case, the requirements are the same: strategic fit, clear value creation, an executable integration plan and returns that exceed our cost of capital. Within that framework, we see several areas where M&A or partnerships could strengthen the platform without changing the discipline around our decisions. One area is Prepared Foods, where we may add capabilities, products or geographic reach within the broader value-added avocado ecosystem. Another area is avocado markets where Mission can add scale or improve it throughout the market, particularly in Europe, the U.K. and Asia. We will also consider capacity investments as well as smaller category adjacencies. We also have the ability to create value through share repurchases. Our $100 million authorization gives us flexibility to act when the valuation is attractive and our balance sheet and cash outlook support it. As capital intensity moderates and free cash flow improves, repurchases can become a more meaningful part of the capital allocation mix. When executed, they can reduce the share count and allow continuing shareholders to participate in a larger percentage of the company's future earnings. Let me now bring the operating plan, margin opportunity, cash profile and capital allocation framework together in our 5-year financial targets. We are targeting mid-single-digit organic sales growth and high-single-digit plus adjusted EBITDA growth over the 5-year period. We expect capital expenditures to average approximately 3% of sales and free cash flow conversion to exceed 90% over time. Together, these targets represent a meaningful change from the capital-intensive period the company is exiting. We also intend to reduce net leverage to below 1.5x adjusted EBITDA. These are connected targets. Growth and margin expansion increase earnings. Lower capital intensity improves conversion. And stronger cash generation supports leverage reduction and capital deployment. These targets define the operating and financial performance we intend to control. The next slide shows how that performance together with disciplined M&A and share repurchases are intended to create value for shareholders. The foundation of our shareholder return goals is organic execution. Growing sales above the market and expanding margins are expected to produce high-single-digit plus organic adjusted EBITDA growth, providing the operating foundation for shareholder value creation. M&A and share repurchases are additional capital allocation levers. We're not assuming that a transaction or a specific level of repurchases will occur every year. We will use these tools when they offer an attractive risk-adjusted return and fit within our balance sheet priorities. But importantly, we will execute on these 2 critical contributors to TSR. Combined, our operating performance, M&A execution and share repurchases are designed to support high single-digit to double-digit annual shareholder returns over time. That is the financial meaning of Built to Compound. With that, I'll turn it back to John to bring together the key messages from today.

Thanks, Bryan. Great job. All right. A lot of good stories today. You guys, it's really simple in my opinion. There's 2 things. One, we're in an incredibly attractive category compared to a lot of other places. And we feel really proud and excited about sharing an amazing piece of fruit and other potential pieces of fruit with the world. And we've built a team and a company that has proven leadership over the last 40 years. And then you think about this next chapter and where we can take it. The opportunity to not only continue to grow that way but then compound value through the process with all the tools that we just laid out are absolutely real and in front of us. And if you look at our results over the last 18 months, they're starting to take root. They're starting to be. This is not grounded in things we think we can do. They're grounded in things we already do and things we feel very confident in doing. We believe that opportunity is absolutely here right now. We're excited about the Calavo business as we brought it into the mix with us with our teams. And we're seeing the benefit of those things right now. You'll start to see them as investors even more deeply as we enter fiscal year '27 and start to roll those things out. And by the way, our fiscal year '27 starts in 3 weeks. So we're not talking about 3 years from now, we're talking about 3 weeks from now. We believe this next chapter is really about the opportunities ahead of us. We believe it's about the team in this room and the team all over the world that supports bringing this amazing products to the consumers everywhere that we serve. And I will wrap it at that and turn it over for questions, and I'm excited to answer your questions. Thank you, guys, very much. So I think we're going to set the stage for a couple of us to be up here for questions. Yes. I think, Bryan and Brooke, come on up. We can just stand up here and take questions. We don't need to sit, I don't think. We're fine. Yes, we're good. We don't need them. We're going to go without the chairs. It's more comfortable to stand up here. All right. So ready? We'll start.

Perfect. Just first question for me. I just wanted to ask a little bit about domestic market share, which is strong here. I think you said 27%. Curious, just do you reach a point where retailers may be pushed back on concentrate in supply? Is that a risk? Or is that too far off to really worry about right now?

Yes. The short answer is when you look across the spread of our customer base, you have customers that ask questions about the amount of supply that they're getting from one person, right? And we have probably those conversations maybe once or twice a year. And the reason I'm saying that is we have hundreds of customers and there are many, many places from an opportunities perspective where there's white space that we don't have access to them right now or we're 1 of 8 suppliers or 10 suppliers with them today. So it's always a conversation when you're talking about category breadth and category space, but it's not one that we see any major limitations to over the next 5 to 10 years. Pooran?

Pooran Sharma with Stephens. Wanted to understand the margin expansion opportunity in your 5-year plan a little bit. Really strong message here with the 300 basis points of margin expansion. I think you have a couple of different buckets here in terms of the mix, asset utilization, SG&A leverage and then just synergies. When you get to the end of the road, how should we think about the orders of magnitude for each bucket?

Pooran, I think that we could probably start with synergies because we've given guidance on that, which were at $30 million right now. At the run rate of sales that we generated in 2025, that's about 1.5% revenue right there. So that's probably the most significant and immediate contributor in the relatively short-term time frame. I think if you look beyond that, when we talk about supply utilization, part of it is talking about capacity utilization within our U.S. operations. But another part of it is utilizing assets within our farming operations as well. While our Peru orchards are relatively mature at this point, there's still opportunity for yield and margin improvement as a result. But most importantly, our Guatemala operations where we have over 700 hectares of trees planted have yet to contribute to the bottom line. We expect that those trees will move into a productive state during fiscal '27 and likely begin contributing to the bottom line in fiscal '28 and beyond. So that certainly is a driver as well where we're expecting to see meaningful growth. I think beyond that, you look at the SG&A leverage with the growth opportunities we see ahead of it, we certainly think that we can contain the growth rate over time to a rate that's lower than the sales opportunities that lie ahead of us with our combined infrastructure. And last but not least, the Prepared Foods opportunity. We do believe -- it's a smaller part of our business today, but has upsized growth opportunities. And over time, the margin differentials are large enough where we do feel that it will have an impact on pulling our overall EBITDA margins up. So I think I kind of stated them out, maybe the last 2 out of order, but I think I kind of put them through in the order that I think is going to have the most meaningful impact in -- over that 3- to 5-year period.

Okay. Appreciate that. And then just as my follow-up, really, on the M&A slide there, you're looking for potential opportunities. I noticed in Europe and Asia, you also had the other slide where Germany and China market share were relatively low compared to the other regions. Are those specifically kind of where you're looking to grow? If you could give us a little bit more detail into kind of the plan for Europe and Asia as you look into the years ahead.

Yes. I wish I could tell you exactly what's going to happen. I'll be wrong if I tell you exactly what's going to happen. But just to give a little bit more color, right? Europe is an interesting place, as many of you know that cover businesses that deal with the mechanics of serving both customers and consumers, because of the differences country to country to country, right? You can't really look at it as one place and how do we attack that. And right now, we're really focused on, like Brooke kind of reviewed, we spent the last 3 years proving out from a playbook perspective what we can do in an economy in the U.K. And that 15% market share has really been driven off of 3 years of building relationships, pushing plans, executing against promotional strategies and working with customers. We weren't there 3 years ago with that 15%, right? So that's been a really nice kind of ballooning of our business in the U.K. The next -- the question then becomes how do we replicate that in Europe in general. And the short answer is it's going to be country by country. It's not going to be a broad swath, let's do this all over Europe. There are specific places that make a lot of sense based on where we're seeing consumer trends and consumption trends. It's Germany, it's Italy, it's Spain, it's France, right? Those are sort of the big-bucket places that provide the most levers and layers and opportunity right now. But we're really thinking through what's the best approach to attacking those 4 places over the next 5 years. As far as Asia is concerned, you saw Asia has lower consumption rates. And I think Asia is a little bit behind. So you're probably -- I would think in the next 5 to 10 years, it wouldn't be the highest priority for us based on where it's at. But we spend a lot of time investing in the relationships and customers over there. So we're still playing in that marketplace significantly, right? A lot of our product goes to Asia today, particularly directly from our farms in Peru and Guatemala.

Gerry Sweeney from ROTH Capital. Thanks for having us up here today. I wanted to talk about the prepared food side, obviously, a smaller portion, but higher margins. How do you leverage your -- the fresh fruit and distribution footprint to speed up growth on this front? What are the opportunities, strategies, et cetera? How should we think about that over the next 1, 2, 3 years?

Yes. First of all, you basically allow, I wouldn't say, the right way, but you combine the strength of the sales organizations to execute against relationship and opportunity. I'll let Brooke here kind of chime in for a second. But we've been Brooke and Ronnie have been sitting together, Ronnie Araiza is here today, who runs that business, who came with the Calavo acquisition. Brooke and Ronnie have been heads down, working on opportunities over the last 135 days. If I get it wrong in regards to exactly how many days we've closed the business since, I think it's around there. But just in that space, the ability to take Brooke's team and Brooke's network and Brooke's relationships and have conversations where Ronnie had been having significant difficulty getting into over the last 3 years, and opening doors, has been phenomenal. So I'll let Brooke answer that question with a little bit more color.

Yes, Sorry. I would say we spoke about it in our presentation, trust is everything. And it's taken us 40 years to build this brand. And to get in the door is not easy, right, in some of these big retailers. So using that trust and to build upon these programs has been very successful through AvoIntel and then kind of tapping into that, repair divisions too. We're seen as an asset for them from a category management standpoint rather than somebody that just giving you products day in and day out. So across all of our commodity base in actuality, that helps. The relationship and the foundation is avocados, but through tomatoes and Prepared and papaya, it has expanded throughout.