Mission Produce (AVO) Q1 2025 earnings summary

Executive summary

• Record first quarter revenue of $334.2 million, up 29% year-over-year, driven by strong avocado pricing and volume growth, with increased blueberry sales and early progress in mango expansion.

• Net income rose to $3.9 million ($0.05/share) from breakeven last year; adjusted net income was $7.1 million ($0.10/share).

• Adjusted EBITDA was $17.7 million, down 8% year-over-year, reflecting lower per-unit gross margins and lower blueberry prices.

• Diversification across geographies and fruit categories provided operational flexibility and financial consistency.

• Closure of Canadian distribution centers resulted in $1.4 million in one-time charges, with volume absorbed by other facilities.

Financial highlights

• Gross profit increased by $2.8 million to $31.5 million, but gross margin declined to 9.4% from 11.1% year-over-year.

• SG&A expenses rose 7% to $22.2 million, mainly due to higher employee-related costs.

• Adjusted net income was $7.1 million ($0.10 per diluted share), up from $6.7 million ($0.09 per share) year-over-year.

• Net cash used in operating activities was $1.2 million, compared to $9.5 million provided last year, due to higher working capital needs.

• Capital expenditures were $14.8 million, focused on orchard development, facility improvements, and packhouse construction.

Outlook and guidance

• Q2 avocado industry volumes expected to be consistent with last year; Mexico supply to taper, but California and Peru harvests to start earlier, mitigating volume impact.

• Avocado pricing projected to be about 5% higher year-over-year in Q2; blueberry volumes expected to rise 35-40% with stable pricing.

• Fiscal 2025 capital expenditures expected to be $50–$55 million, mainly for International Farming and Blueberries segments.

• Guidance does not factor in potential impacts from ongoing tariff discussions.

• Tariffs on Mexican imports, if resumed, could increase costs and impact margins.