Mission Produce Inc. reported financial results for its fiscal first quarter ended January 31, 2025, with total revenue increasing by 29% year-over-year to $334.2 million. The increase was primarily driven by higher avocado prices and volumes in its Marketing & Distribution segment, along with volume growth in its Blueberries segment.
The company posted a net income of $3.9 million ($0.05 per diluted share), compared to breakeven in the same period last year. Adjusted net income rose to $7.1 million ($0.10 per diluted share) from $6.7 million ($0.09 per diluted share) in the prior year. Adjusted EBITDA declined 8% to $17.7 million, primarily due to lower per-unit margins on avocado and blueberry sales.
Revenue in the Marketing & Distribution segment rose by $71.2 million (32%) to $295.8 million, reflecting a 25% increase in per-unit avocado prices and a 5% increase in volume. However, segment EBITDA declined to $9.7 million from $11.0 million, affected by higher fruit costs that lowered per-unit margins.
In the Blueberries segment, revenue increased 12% year-over-year to $36.4 million, largely due to a 70% rise in volume. However, average per-unit prices fell by 33% due to normalized market conditions compared to the previous year's weather-related supply shortage. EBITDA for the segment declined to $6.2 million from $8.7 million.
The International Farming segment reported a 59% increase in revenue to $9.2 million, primarily from increased blueberry packing service activity. Segment EBITDA improved to $1.8 million from a negative $0.5 million, reflecting better overhead absorption from higher production volumes.
Gross profit for the quarter rose by $2.8 million to $31.5 million, although the gross margin declined to 9.4% of revenue, impacted by reduced margins in the Marketing & Distribution segment. SG&A expenses increased 7% to $22.2 million, attributed to higher employee-related costs.
Cash and cash equivalents stood at $40.1 million at the end of the quarter, down from $58.0 million at the previous fiscal year-end. Operating cash flow was negative $1.2 million, compared to a positive $9.5 million in the prior year, due to higher inventory and receivables. Capital expenditures totaled $14.8 million, focused on orchard development, infrastructure, and expansion in Peru and Guatemala.
Outlook
Mission Produce expects second-quarter industry volumes to be similar to last year, with Mexico's supply tapering off but offset by earlier California and Peruvian harvests. Prices are projected to be about 5% higher year-over-year. Blueberry volumes are expected to rise 35–40%, though average prices will likely remain stable.
Full-year capital expenditure guidance remains between $50 million and $55 million. The company continues to monitor the potential impacts of trade tariffs but has not factored them into current forecasts.
To view the full report, click here.
For more information:
Jeff Sonnek
Mission Produce
Tel: +1 646-277 1263
Email: jeff.sonnek@icrinc.com
www.investors.missionproduce.com