Mission Produce reported a 28% year-over-year revenue increase in fiscal Q2 2025, reaching $380.3 million. However, net income fell to $3.1 million ($0.04 per diluted share) from $7.0 million ($0.10) last year. Adjusted net income was $8.7 million ($0.12), down from $9.8 million ($0.14), while adjusted EBITDA declined 5% to $19.1 million.
CEO Steve Barnard credited strong performance to the company's global sourcing network, noting high avocado prices despite flat volumes, indicating stable consumer demand. Mission's mango business hit record volumes and gained U.S. market share, while U.K. operations improved through better customer penetration. The company repurchased $5.2 million in stock, citing undervaluation.
In the Marketing & Distribution segment, sales rose 26% to $362.5 million due to higher avocado prices. However, adjusted EBITDA fell to $16.8 million from $21.7 million, impacted by lower per-unit margins and $2.6 million in combined costs from a Canadian facility closure and short-lived U.S. tariffs on Mexican imports.
The International Farming segment saw sales rise 479% to $8.1 million, with adjusted EBITDA improving to $1.5 million, supported by better yields and pricing in mango orchards and increased blueberry service volume.
The Blueberries segment grew 57% to $15.7 million in revenue, with flat adjusted EBITDA due to higher volume offsetting lower per-unit margins.
Gross profit fell to $28.4 million from $31 million, with the gross margin slipping to 7.5%. SG&A expenses rose 15% to $21.5 million, driven by employee compensation and legal fees.
Cash and cash equivalents stood at $36.7 million as of April 30, down from $58.0 million in October 2024. Net cash used in operations was $13.0 million, driven by working capital growth linked to higher avocado prices and increased farming inventory. Capital expenditures for the first half reached $28.0 million, focused on orchard maintenance, land improvements in Guatemala, and blueberry cultivation in Peru.
Looking ahead to Q3, Mission expects avocado volumes to rise 10–15% due to a strong Peruvian harvest, with pricing forecasted to decline by 10–15% from the prior year. FY2025 capital expenditures are projected between $50 million and $55 million.
Mission's Q2 results reflect strong top-line growth and strategic expansion, tempered by margin pressures and transitional costs. The company continues to focus on global market development and supply chain optimization.
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For more information:
Jeff Sonnek
Mission Produce
Tel: +1 646 277 1263
Email: [email protected]
www.missionproduce.com