Mission Produce Reports 29% Revenue Growth to $334.2 Million in Fiscal Q1 2025

Mission Produce, Inc. reported significant financial growth in its fiscal first quarter of 2025, with net sales reaching $334.2 million, a 29% increase from $258.7 million in the same period last year. The company's gross profit also rose to $31.5 million, up from $28.7 million, although the gross profit margin decreased to 9.4% from 11.1%. The increase in revenue was primarily driven by a 25% rise in average per-unit avocado sales prices and a 5% increase in avocado volume sold, attributed to strong consumer demand amid limited supply from Mexico.

The company's operating income improved to $9.3 million, compared to $8.0 million in the prior year, while net income attributable to Mission Produce was $3.9 million, a notable increase from a net loss of $0.0 million in the previous year. This resulted in a basic earnings per share of $0.06, compared to $0.00 in the same quarter last year. The increase in profitability was supported by a reduction in interest expenses, which fell to $2.2 million from $3.3 million, reflecting lower average balances on the revolving line of credit.

Operationally, Mission Produce has made strategic adjustments, including the closure of its Canadian distribution centers, which resulted in approximately $1.4 million in charges related to accelerated depreciation and severance costs. The company has absorbed the distribution volume from these facilities into its other distribution centers and third-party service providers. Additionally, the company reported a total of 71,071,752 shares of common stock outstanding as of February 28, 2025.

Looking ahead, Mission Produce anticipates continued growth driven by its Marketing & Distribution segment, which accounted for the majority of sales. However, the company faces challenges, including potential tariffs on imports from Mexico, which could impact costs and pricing strategies. The company is also monitoring the effects of fluctuating market conditions and supply chain dynamics on its operations. Overall, Mission Produce remains focused on optimizing its supply chain and expanding its market presence while navigating the complexities of the agricultural sector.