OXNARD, Calif., March 10, 2025 (GLOBE NEWSWIRE) — Mission Produce, Inc. BB #:118126 a world leader in sourcing, producing, and distributing fresh Hass avocados, today reported its financial results for the fiscal first quarter ended January 31, 2025.
Fiscal First Quarter 2025 Financial Overview:
- Total revenue increased 29% to $334.2 million compared to the same period last year
- Net income of $3.9 million, or $0.05 per diluted share, compared to $0.0 million, or $0.00 per diluted share, for the same period last year
- Adjusted net income of $7.1 million, or $0.10 per diluted share, compared to $6.7 million, or $0.09 per diluted share, for the same period last year
- Adjusted EBITDA decreased 8% to $17.7 million, compared to $19.2 million in the same period last year
CEO Message
Steve Barnard, CEO of Mission, stated, “We were pleased to meet robust consumer demand in our fiscal first quarter and deliver volume growth despite industry supply challenges in Mexico. Our Marketing & Distribution segment drove volume growth despite higher pricing, demonstrating the underlying strength of the category. Additionally, our strategic investments in our Blueberries segment supported significant volume growth which led to solid segment EBITDA contribution. While the operating environment led to lower per unit avocado margins this year due to higher fruit costs, our diversification across categories and markets helped us deliver solid bottom-line results against a tough year-ago comparison. Looking ahead, while the impact of tariffs on Mexican supply dynamics continues to be uncertain and fluid, we will focus on leveraging our competitive strengths in the California and Peruvian sourcing markets to deliver for our customers. Combined with our strong balance sheet and disciplined approach to capital allocation, we believe we’re well-positioned to continue creating value for our shareholders.”
Fiscal First Quarter 2025 Consolidated Financial Review
Total revenue for the first quarter of fiscal 2025 increased $75.5 million or 29% to $334.2 million compared to the same period last year. The increase was primarily driven by the Marketing & Distribution segment, where average per-unit avocado selling prices increased 25% on a 5% increase in avocado volumes sold. The higher selling prices reflect the industry supply constraints in Mexico and demonstrate resilient consumer demand. Blueberries segment revenue also increased, primarily due to a 70% increase in volume sold, partially offset by a 33% decrease in average per-unit selling prices. Higher blueberry volume was driven by increased total acreage and yields from Company farms, while price decreases were driven by a normalization of the supply and demand environment this year, as compared to the prior year’s high pricing that was driven by lower supply following unfavorable regional weather conditions.
Gross profit increased $2.8 million in the first quarter of fiscal 2025 to $31.5 million, compared to the same period last year, driven by the International Farming segment, which benefited from increased packing and cooling service activity that correlated with higher blueberry production volumes, partially offset by lower gross profit in the Marketing & Distribution segment, which was negatively impacted by lower per-unit margins on avocados sold due to challenges in obtaining Mexican supply required to meet customer commitments. Gross profit percentage decreased 170 basis points, to 9.4% of revenue. Gross profit percentage will fluctuate based upon per-unit sales price levels in relation to per-unit costs, as profitability is primarily managed on a per-unit basis.
Selling, general and administrative expense (“SG&A”) for the first quarter increased $1.5 million or 7% to $22.2 million, compared to the same period last year primarily due to higher employee related costs, including statutory profit-sharing expenses and stock-based compensation expense.
Net income for the first quarter of fiscal 2025 was $3.9 million, or $0.05 per diluted share, compared to breakeven, or $0.00 per diluted share, for the same period last year. Net income growth was driven by lower interest rates on lower borrowings, increased equity income and other income associated with foreign currency transaction gains on a strengthening U.S. dollar versus the prior year period.
Adjusted net income for the first quarter of fiscal 2025 was $7.1 million, or $0.10 per diluted share, compared to $6.7 million, or $0.09 per diluted share, for the same period last year.
Adjusted EBITDA was $17.7 million for the first quarter of fiscal 2025, a decrease of $1.5 million or 8% as compared to $19.2 million in the prior year period, driven primarily by lower per-unit gross margins on fruit sold in the Marketing & Distribution and Blueberries segments.
Fiscal First Quarter Business Segment Performance
Marketing & Distribution
Net sales in the Marketing & Distribution segment increased $71.2 million or 32% to $295.8 million for the first quarter, driven by the avocado pricing and volume dynamics described above.
Segment adjusted EBITDA was $9.7 million compared to $11.0 million for the same period last year, primarily due to the impact of lower per-unit gross margins on avocados sold.
International Farming
The vast majority of fruit sales from our International Farming segment are made to the Marketing & Distribution segment, with the remainder of revenue largely derived from services provided to third parties and our Blueberries segment. Affiliated sales are concentrated in the second half of the fiscal year in alignment with the Peruvian avocado harvest season, which typically runs from April through September of each year. As a result, adjusted EBITDA for the International Farming segment is generally concentrated in the third and fourth quarters of the fiscal year in alignment with the timing of sales. In addition, the Company operates approximately 700 acres of mangos in Peru. The timing of the mango harvest is generally concentrated in the fiscal second quarter.
Total sales in the International Farming segment for the first quarter increased $3.4 million or 59% to $9.2 million, compared to $5.8 million for the same period last year primarily due to higher blueberry packing service revenue as compared to the prior year period.
Segment adjusted EBITDA increased $2.3 million to $1.8 million compared to negative $0.5 million for the same period last year, primarily due to improved overhead absorption realized by higher packing revenue, which was supported by growth of its Blueberries business.
Blueberries
Sales in the Blueberries segment have traditionally been concentrated in the first and fourth quarters of the fiscal year in alignment with the Peruvian blueberry harvest season.
Net sales in the Blueberries segment increased 12% to $36.4 million for the first quarter, compared to $32.5 million for the same period last year, driven by the blueberry pricing and volume dynamics described above.
Segment adjusted EBITDA decreased 29% to $6.2 million for the first quarter, compared to $8.7 million for the same period last year, primarily due to lower selling prices impacting per-unit gross margins.
Outlook
For the second quarter of fiscal year 2025, the Company is providing the following industry outlooks that will drive performance. Importantly, these assumptions do not consider any influence from potential tariffs that the U.S. administration and North American trading partners are considering:
- Industry volumes in the fiscal 2025 second quarter are expected to be consistent with the prior year period. Mexico volumes should taper off during the quarter as the industry harvest comes in lighter than initial expectations. However, California and
- Peruvian harvests should get off to a faster start based upon improved weather conditions, which should mitigate the impact on overall available volumes.
- At projected volume levels, pricing is expected to be higher on a year-over-year basis by approximately 5% compared to the $1.59 per pound average experienced in the second quarter of fiscal 2024, indicative of continued strength in demand.
- Harvest timing of the Company’s Peruvian blueberry season this year is similar to the prior year with approximately 20% of the harvest to be sold through in the fiscal second quarter, which should translate to an increase in volumes sold of approximately 35-40% when applied to a larger total harvest from our farms for the 2024/2025 season. Average sales prices are expected to decline sequentially but be consistent with prices experienced in the second quarter of fiscal 2024.
- For fiscal 2025, total capital expenditures are expected to remain in the range of $50 to $55 million.
About Mission Produce, Inc.
Mission Produce is a global leader in the worldwide avocado business with additional offerings in mangos and blueberries. Since 1983, Mission Produce has been sourcing, producing and distributing fresh Hass avocados, and currently services retail, wholesale and foodservice customers in over 25 countries. The vertically integrated Company owns and operates four state-of-the-art packing facilities in key growing locations globally, including California, Mexico and Peru and has additional sourcing capabilities in Chile, Colombia, the Dominican Republic, Guatemala, Brazil, Ecuador, South Africa and more, which allow the company to provide a year-round supply of premium fruit. Mission’s global distribution network includes strategically positioned forward distribution centers across key markets throughout North America, China, Europe, and the UK, offering value-added services such as ripening, bagging, custom packing and logistical management. For more information, please visit www.missionproduce.com.
