Core Insights - Mission Produce, Inc. has appointed Laura Flanagan as an independent Class III director, effective June 30, 2025, increasing the board size from nine to ten directors [1] - Flanagan brings over 25 years of leadership experience in the food and beverage industry, with expertise in strategic growth, marketing, and supply chain efficiency [2] - Flanagan previously served as CEO of Ripple Foods and Foster Farms, where she achieved significant revenue and profitability improvements [3] - The CEO of Mission Produce, Steve Barnard, expressed confidence in Flanagan's ability to drive innovation and strategic growth for the company [4] - Flanagan holds an MBA from Stanford and has served on various boards, including Performance Food Group [4] Company Overview - Mission Produce is a global leader in sourcing, producing, and distributing fresh Hass avocados and mangos, operating in over 25 countries [5] - The company has been in operation since 1983 and is vertically integrated with five packing facilities across the U.S., Mexico, Peru, and Guatemala [5] - Mission Produce sources from over 20 premium growing regions, ensuring a year-round supply of fresh fruit [5] - The company has a global distribution network with strategically positioned forward distribution centers in key markets, offering value-added services [5]

Core Insights - Mission Produce Inc. (AVO) shares have increased by 14.8% in the past month, driven by strong second-quarter fiscal 2025 results that exceeded expectations despite margin pressures [1][8][12] - The company is optimistic about future growth due to Peruvian supply, value-added fruit segments, and strategic capital allocation, which supports a positive outlook for 2025 [2][15] - AVO's stock performance has outpaced key industry benchmarks, including the Zacks Agriculture – Operations industry and the S&P 500 index [2][3] Financial Performance - AVO reported record revenue growth of 28% year-over-year for Q2, primarily due to a 26% increase in average avocado selling prices, despite flat volume [12][8] - The International Farming segment saw a significant revenue increase of 479%, with adjusted EBITDA improving to $1.5 million [13] - The gross margin decreased to 7.5% due to short-term supply constraints, but is expected to normalize as Peruvian volumes increase [13] Future Outlook - For Q3 fiscal 2025, AVO anticipates avocado industry volumes to rise by 10-15%, with production expected to reach 100-110 million pounds, more than double last year's output [14] - Management's strategic focus on mango and U.K. markets, along with disciplined capital spending, positions AVO for long-term growth [15] Valuation Metrics - AVO is currently trading at a forward 12-month P/E ratio of 27.84X, which is higher than the industry average of 16.45X and the S&P 500's average of 22.13X [18][19] - Despite the premium valuation, this reflects high investor expectations for AVO's future performance and growth potential [20] Investor Sentiment - Recent upward revisions in earnings estimates for fiscal 2025 indicate growing investor confidence in AVO's prospects [16][23] - The company's competitive edge through vertically integrated operations and global sourcing allows it to meet customer demand effectively [23][24]

Key Takeaways Mission Produce is entering the mango market using the same integrated model that drove its avocado success. AVO aims to raise mango quality and consistency to drive demand and gain long-term market share. The move supports diversification, tapping into healthy snacking trends and stabilizing performance.Mission Produce, Inc.’s (AVO) strategic entry into the mango category is a calculated move that builds on its vertically integrated model and success in avocados. As part of a broader divers ...

Mission Produce® Investor Presentation June 2025 This presentation is for informational purposes only. Any information, content, or recommendations included herein shall not be construed as a guarantee of future results. We make no representations or warranties, and expressly disclaim any representations or warranties, as to the validity, accuracy, or completeness of the information contained herein. This presentation and its contents are the property of Mission Produce. Do not copy, modify, reproduce, or d ...

FISCAL 2025 Q2 SNAPSHOT | Total Revenue | Adjusted EBITDA | Avocado Volume Sold | Average Selling Price | | --- | --- | --- | --- | | $380.3M | $19.1M | 166.4M LBS | $2.00 /LB | | +28% YoY | -5% YoY | -1% YoY | +26% YoY | Non-GAAP Financial Measure Mission Produce: A Global Leader in Avocados About Mission Produce, Inc. Mission Produce (Nasdaq: AVO) is a global leader in the worldwide fresh produce business, delivering fresh Hass avocados and mangos to retail, wholesale and foodservice customers in over 25 ...

Core Insights - Mission Produce, Inc. has developed a resilient strategy to navigate avocado pricing volatility through vertical integration and geographic diversification in sourcing avocados [1][2][3] Group 1: Company Strategy - The company employs vertical integration by controlling multiple stages of the supply chain, which allows for quick adaptation to market fluctuations and effective cost management [1][7] - Geographic diversification is emphasized, sourcing avocados from Mexico, Peru, Colombia, and Guatemala to mitigate region-specific risks and stabilize prices [1][2] Group 2: Market Demand and Operational Efficiency - Global avocado demand remains strong, with consumption growing in North America and rapidly increasing in Europe and Asia [2] - Mission Produce is enhancing productivity in packing and ripening facilities, optimizing logistics, and leveraging data analytics for better inventory management and demand forecasting [2] Group 3: Innovation and Future Outlook - The company is investing in proprietary ripening technology to deliver consistent, ready-to-eat avocados with minimal waste [3] - Mission Produce is exploring value-added products and sustainable packaging solutions to align with evolving consumer preferences [3] Group 4: Competitive Landscape - Calavo Growers, Inc. is focusing on agile pricing and supply-chain strength, expanding sourcing beyond Mexico to stabilize supply and manage costs [4] - Fresh Del Monte Produce Inc. leverages a vertically integrated supply chain and invests in agri-tech, posing a competitive threat to Mission Produce, especially in international markets [5] Group 5: Financial Performance and Valuation - Mission Produce shares have lost approximately 20% year to date, contrasting with the industry's growth of 7.6% [6] - The company trades at a forward price-to-earnings ratio of 23.88X, significantly above the industry average of 16.07X [8] - The Zacks Consensus Estimate indicates a year-over-year decline of 32.4% for fiscal 2025 earnings and a 6% decline for fiscal 2026 [9]

Mission Produce, Inc. (AVO) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 300%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.10, delivering a surprise of 900%.Over the last four quarters, the company ...

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $380.3 million, an increase of 28% compared to the prior year period [5][14] - Adjusted EBITDA was $19.1 million, down from $20.2 million in the previous year, primarily due to lower per unit gross margins on avocados sold [17] - Gross profit was $28.4 million, compared to $31 million in the prior year, mainly due to challenges in obtaining necessary Mexican fruit supply [15][16] Business Line Data and Key Metrics Changes - The Marketing and Distribution segment net sales increased 26% to $362.5 million, driven by favorable avocado pricing dynamics [17] - The International Farming segment saw net sales increase by $6.7 million to $8.1 million, with adjusted EBITDA improving by $3.7 million to a positive $1.5 million [18] - The blueberry segment's net sales increased 57% to $15.7 million, driven by higher volumes from increased acreage and yields [18] Market Data and Key Metrics Changes - The pricing environment remained favorable throughout the quarter, with a 26% increase in per unit avocado selling prices [14][15] - The company anticipates industry volumes to be approximately 10% to 15% higher in the fiscal third quarter compared to the prior year, primarily due to a strong Peruvian harvest outlook [21][22] Company Strategy and Development Direction - The company is focused on expanding its competitive position globally by enhancing market access and leveraging its global sourcing network [5][7] - A forward distribution center in the UK has been established to accelerate reach in the European market, resulting in strong customer penetration and higher volumes [7] - The diversification strategy aims to optimize facility utilization year-round, positioning the company for stronger performance during peak harvest seasons [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality and sizing of the upcoming Peruvian avocado harvest, expecting good production and quality [26][30] - The company is optimistic about generating customary cash flow increases in the second half of the fiscal year, aided by a more normal Peruvian crop [11][12] - Management noted that the higher price environment has amplified normal seasonal dynamics but expects a meaningful step up in cash generation in the second half [20][21] Other Important Information - The company executed $5.2 million in share repurchases during the second quarter, reflecting belief that the share price is undervalued [12][21] - Capital expenditures for the fiscal year to date were $28 million, primarily for avocado and blueberry farming investments [20] Q&A Session Summary Question: Outlook for the International Farming segment - Management indicated that fruit quality from Peru is expected to be good, with sizing also looking favorable [26][30] Question: Co-packer volume in the second quarter - Management confirmed that they were able to reach normalized levels of co-packer volume by leveraging other source markets [32][33] Question: Changes in behavior due to tariff uncertainty - Management noted that there was initial skittishness among suppliers during the tariff announcements, but by April, operations returned to normal [41][42] Question: Market share in the mango business - The company is now the second largest mango distributor in the U.S., with market share increasing from below 5% to closer to 10% [46][48]

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $380.3 million, an increase of 28% compared to the prior year period [5][14] - Adjusted net income for the quarter was $8.7 million or $0.12 per diluted share, down from $9.8 million or $0.14 per diluted share last year [16] - Adjusted EBITDA was $19.1 million compared to $20.2 million last year, primarily driven by lower per unit gross margins on avocados sold [16] Business Line Data and Key Metrics Changes - The Marketing and Distribution segment net sales increased 26% to $362.5 million, primarily due to favorable avocado pricing dynamics [16] - The International Farming segment saw net sales increase by $6.7 million to $8.1 million, with adjusted EBITDA improving by $3.7 million to a positive $1.5 million [17] - The blueberry segment's net sales increased 57% to $15.7 million, driven by higher volumes from increased acreage and yields [17] Market Data and Key Metrics Changes - The pricing environment remained favorable throughout the quarter, with a 26% increase in per unit avocado selling prices driven by strong consumer demand [14][16] - Exportable avocado production from the company's own farms in Peru is expected to range between 100 million to 110 million pounds, significantly higher than the previous year's 43 million pounds [22] Company Strategy and Development Direction - The company is applying its successful commercial strategy to enhance competitive positioning globally, including opening a forward distribution center in the UK to expand market reach [7] - The diversification strategy is aimed at optimizing facility utilization year-round while preparing for stronger performance during the avocado harvest season in South America [10] - The company is strategically expanding its blueberry acreage, expecting to add more than 200 hectares for the next season to capitalize on growing consumer demand [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality and sizing of the upcoming Peruvian avocado harvest, indicating expectations for a good year [26][28] - The company anticipates a meaningful step up in cash generation in the second half of the fiscal year, driven by improved production and market conditions [19] - Management noted that the pricing is expected to decrease by approximately 10% to 15% year-over-year due to higher volumes available in the market [22] Other Important Information - The company executed $5.2 million in share repurchases during the second quarter, reflecting belief that the share price is undervalued [12] - Capital expenditures for the fiscal year to date were $28 million, primarily for avocado and blueberry farming investments [19] Q&A Session Summary Question: Outlook for the International Farming segment - Management indicated that fruit quality is expected to be good, with sizing also looking favorable [26][28] Question: Co-packer volume in the second quarter - Management confirmed that they were able to moderate co-packer volume to more normalized levels by leveraging other source markets [32][33] Question: Changes in behavior due to tariff uncertainty - Management noted that there was initial skittishness among suppliers, but by April, operations returned to normal with no significant disruptions [41][42] Question: Market share and growth potential in the Mango business - The company is now the second largest mango distributor in the U.S., with market share increasing from below 5% to closer to 10% [46][48]

Financial Performance - Net sales increased by $82.7 million or 28% in the three months ended April 30, 2025, and by $158.2 million or 28% in the six months ended April 30, 2025, primarily driven by the Marketing & Distribution segment [84]. - Total net sales for Q2 2025 were $380.3 million, an increase from $297.6 million in Q2 2024, while total net sales for the first half of 2025 were $714.5 million compared to $556.3 million in the same period last year [108]. - Net sales in the Marketing & Distribution segment increased by $75.4 million or 26% for the three months ended April 30, 2025, compared to the same period last year [114]. - Net sales in the Blueberries segment increased by $5.7 million or 57% for the three months ended April 30, 2025, primarily due to higher volume from increased acreage and yields [118]. Profitability and Expenses - Gross profit decreased by $2.6 million or 8% in the three months ended April 30, 2025, to $28.4 million, with gross profit percentage decreasing to 7.5% of revenue [90]. - SG&A expenses increased by $2.8 million or 15% in the three months ended April 30, 2025, and by $4.3 million or 11% in the six months ended April 30, 2025, primarily due to higher employee-related costs [93]. - Other expense was $0.6 million in Q2 2025 compared to other income of $1.0 million in Q2 2024, driven by foreign currency transaction losses from a weakening U.S. dollar against the Mexican peso [100]. - Total adjusted EBITDA for Q2 2025 was $19.1 million, a decrease from $20.2 million in Q2 2024, while total adjusted EBITDA for the first half of 2025 was $36.8 million compared to $39.4 million in the same period last year [109]. - Marketing & Distribution adjusted EBITDA for Q2 2025 was $16.8 million, down from $21.7 million in Q2 2024, and for the first half of 2025 it was $26.5 million compared to $32.7 million in the same period last year [109]. - Segment adjusted EBITDA for the Blueberries segment decreased by $2.4 million or 26% for the six months ended April 30, 2025, primarily due to lower per-unit margins [121]. International Operations - Gross profit at the International Farming segment increased due to higher pricing and yield from owned mango orchards [91]. - The International Farming segment's sales are concentrated in the second half of the fiscal year, aligning with the Peruvian avocado harvest season [76]. - Adjusted EBITDA for the International Farming segment increased by $3.7 million or 168% for the three months ended April 30, 2025, driven by higher pricing and yield from mango orchards [117]. - Equity method income increased by $0.4 million or 80% in Q2 2025 and by $0.8 million or 89% in the first half of 2025, primarily due to improved margins on fruit sold by Mr. Avocado in China [98]. Cash Flow and Liquidity - Net cash used in operating activities was $13.0 million for the six months ended April 30, 2025, compared to cash provided of $12.9 million in the same period last year, largely due to growth in working capital [123]. - The company’s liquidity includes cash and cash equivalents of $36.7 million as of April 30, 2025, down from $58.0 million as of October 31, 2024 [131]. - Outstanding borrowings on the syndicated debt facility totaled $147.5 million as of April 30, 2025 [136]. - The company was in compliance with all financial covenants of the credit facility as of April 30, 2025 [133]. Taxation and Regulatory Environment - Provision for income taxes decreased by $1.7 million or 50% in Q2 2025 and by $0.6 million or 11% in the first half of 2025, primarily due to lower income before taxes [105]. - The effective tax rate for Q2 2025 was 36.2%, compared to 32.7% in Q2 2024, and for the first half of 2025 it was 34.8% compared to 37.9% in the same period last year [105]. - The company continues to monitor regulatory changes and their impact on pricing strategies due to potential future trade policy changes [77]. Interest and Charges - Interest expense for the period primarily consisted of interest on borrowings under working capital facilities and long-term debt [95]. - Interest expense decreased by $0.9 million or 26% in Q2 2025 compared to Q2 2024, and by $2.0 million or 30% in the first half of 2025 compared to the same period last year, due to lower average balances on the revolving line of credit and lower interest rates [96]. - The company incurred $1.5 million in charges related to the closure of Canadian distribution centers during the first quarter of 2025 [78]. - The company recognized $1.1 million in tariffs on Mexican imports during a brief tariff application period in March 2025 [75].