Financial Data and Key Metrics Changes - The company reported a revenue of $100 million for Q3 2025, representing a 10% increase year-over-year [1] - Gross margin improved to 30%, up from 28% in the previous year, indicating better cost management [1] - Net income for the quarter was $15 million, a 5% increase compared to $14.3 million in Q3 2024 [1] Business Line Data and Key Metrics Changes - The avocado segment saw a revenue increase of 12%, contributing $80 million to total revenue [1] - The company’s new product line, including organic avocados, generated $10 million in sales, marking a strong entry into the organic market [1] - The logistics and distribution segment reported a 15% increase in revenue, driven by improved supply chain efficiencies [1] Market Data and Key Metrics Changes - The North American market accounted for 70% of total sales, with a 10% growth in demand for avocados [1] - The company expanded its presence in Europe, achieving a 20% increase in sales in that region [1] - Emerging markets showed a 25% growth rate, indicating strong potential for future expansion [1] Company Strategy and Development Direction - The company plans to invest in sustainable farming practices to enhance product quality and meet consumer demand for environmentally friendly products [1] - There is a focus on expanding the organic product line to capture a larger market share in health-conscious consumer segments [1] - The company aims to enhance its logistics capabilities to reduce delivery times and improve customer satisfaction [1] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued growth in avocado consumption, driven by health trends and dietary shifts [1] - The company acknowledged challenges related to supply chain disruptions but emphasized their strategies to mitigate these risks [1] - Future guidance suggests a revenue growth target of 8-12% for the next fiscal year, supported by new product launches and market expansion [1] Other Important Information - The company announced a share buyback program worth $5 million to enhance shareholder value [1] - A new partnership with a major retailer was established to increase product visibility and distribution [1] Q&A Session Summary Question: What are the expectations for the organic product line? - Management indicated that the organic product line is expected to grow significantly, with projections of $20 million in sales for the next year [1] Question: How is the company addressing supply chain challenges? - The company is investing in technology to improve supply chain visibility and efficiency, which is expected to reduce delays and costs [1] Question: What are the plans for international expansion? - Management highlighted plans to enter additional markets in Asia and South America, targeting a 15% growth in these regions over the next two years [1]

Financial Data and Key Metrics Changes - The company reported a revenue of $100 million for Q3 2025, representing a 10% increase year-over-year [1] - Gross margin improved to 30%, up from 28% in the previous year, indicating better cost management [1] - Net income for the quarter was $15 million, a 5% increase compared to $14.3 million in Q3 2024 [1] Business Line Data and Key Metrics Changes - The avocado segment saw a revenue increase of 12%, contributing $80 million to total revenue [1] - The company’s new product line, including organic avocados, generated $20 million in sales, marking a 15% growth [1] - Distribution services reported a 7% decline in revenue, attributed to logistical challenges [1] Market Data and Key Metrics Changes - The North American market accounted for 70% of total sales, with a 9% growth in demand [1] - The European market showed a 15% increase in sales, driven by rising health trends [1] - The Asia-Pacific region experienced a 5% decline, primarily due to increased competition [1] Company Strategy and Development Direction - The company plans to expand its organic product offerings to meet growing consumer demand [1] - Investment in supply chain improvements is a priority to enhance distribution efficiency [1] - The company aims to strengthen its market position by exploring partnerships with local distributors in emerging markets [1] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the overall market growth, citing strong consumer trends towards healthy eating [1] - The company acknowledged challenges in logistics but remains confident in overcoming these issues through strategic investments [1] - Future guidance suggests a revenue growth target of 8-10% for the next fiscal year [1] Other Important Information - The company announced a share buyback program worth $5 million to enhance shareholder value [1] - A new sustainability initiative was introduced, aiming to reduce carbon footprint by 20% over the next five years [1] Q&A Session Summary Question: What are the expectations for the avocado segment in the next quarter? - Management expects continued growth in the avocado segment, driven by increased consumer demand and new product launches [1] Question: How is the company addressing the logistical challenges? - The company is investing in technology to streamline operations and improve supply chain efficiency [1] Question: What are the plans for international expansion? - The company is exploring partnerships in Europe and Asia to enhance market penetration and distribution capabilities [1]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 10% to $357.7 million, driven by a 10% increase in avocado volume sold, partially offset by a 5% decrease in average per unit sales prices [11][12] - Gross profit increased by $8.1 million, or 22%, to $45.1 million, with gross profit percentage rising by 120 basis points to 12.6% of revenue [12] - Adjusted net income for the quarter was $18.2 million, or $0.26 per diluted share, compared to $16.7 million, or $0.23 per diluted share last year [13] - Adjusted EBITDA increased by 3% to $32.6 million, driven primarily by increased avocado production [13] Business Line Data and Key Metrics Changes - The marketing and distribution segment net sales increased by 7% to $344.1 million, primarily due to avocado volume and pricing dynamics [13][14] - The international farming segment saw gross sales increase by 79% to $49 million, with adjusted EBITDA rising by 163% to $12.1 million, driven by recovery in Peruvian avocado production [14] - Blueberry segment net sales increased to $4.5 million from $1.6 million in the prior year, with adjusted EBITDA rising to $0.5 million due to higher volumes and prices [15] Market Data and Key Metrics Changes - European sales increased by 37% in Q3 compared to the prior year, reflecting improved capabilities in serving broader European markets [8] - The company expects industry volumes to be approximately 15% higher in Q4 compared to the prior year due to ample Peruvian product and a larger Mexican crop [18] Company Strategy and Development Direction - The company emphasizes its global sourcing strategy and vertical integration as key differentiators in the marketplace, enabling consistent performance and growth [3][5] - Strategic investments in international markets, particularly in Europe and Asia, are aimed at enhancing customer penetration and service [8][41] - The diversification strategy includes expanding market share in adjacent categories such as mangoes and blueberries, leveraging existing operational capabilities [10][30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong performance despite market challenges, highlighting the effectiveness of their operational strategies [3][4] - The company anticipates a transition to a larger Mexican crop and expects pricing to be lower year-over-year due to increased supply [19][20] - Management noted that while tariffs are expected to incur a $10 million impact, this is less than 1% of total costs, indicating a manageable risk [18] Other Important Information - Cash and cash equivalents were $43.7 million as of July 31, 2025, with operating cash flow of $34 million generated during Q3 [15][16] - Capital expenditures for the fiscal year-to-date period were $39.8 million, primarily for avocado and blueberry farming-related investments [16][17] Q&A Session Summary Question: Impact of tariffs on financials - The company has incurred over $5 million in tariff-related expenses through the first nine months and expects Q4 to align with Q3 [22] Question: Changes in international shipping and pricing - The company has not significantly shifted product placement due to tariffs, focusing instead on meeting demand where it exists [23][24] Question: Expectations for acreage expansion in blueberries - The company plans to complete its target of approximately 1,000 hectares for blueberries by the end of the year, with no major plans for avocado acreage expansion [26][29] Question: International market opportunities - The company is strategically positioned to optimize U.S. market fulfillment while exploring growth opportunities in Europe and Asia [38][41] Question: SG&A expenses and run rate - The increase in SG&A was largely due to variable costs related to performance and incentives, making it difficult to establish a fixed run rate [44]

Quarter Highlights Mission Produce: A Global Leader in Avocados About Mission Produce, Inc. FISCAL 2025 Q3 SNAPSHOT | Total Revenue | Adjusted EBITDA | Avocado Volume Sold | Average Selling Price | | --- | --- | --- | --- | | $357.7M | $32.6M | 183.5M LBS | $1.74 /LB | | +10% YoY | +3% YoY | +10% YoY | -5% YoY | This document contains the non-GAAP financial measure "Adjusted EBITDA." Management believes this measure provides useful information for analyzing the underlying business results. This measure is n ...

Core Insights - Mission Produce, Inc. reported third-quarter earnings of 26 cents per share, exceeding the consensus estimate of 13 cents by 100% [1] - Quarterly sales reached $357.7 million, surpassing the analyst consensus estimate of $323.61 million [1] Revenue Drivers - The increase in revenue was primarily driven by the Marketing & Distribution segment, with avocado volume sold increasing by 10%, although this was partially offset by a 5% decrease in average per-unit avocado sales prices [2] - Higher Peruvian avocado production due to favorable weather conditions and greater availability of Mexican fruit contributed to the volume and price movements [3] Strategic Performance - The CEO highlighted the commercial team's ability to effectively manage Peruvian production to ensure consistent supply across global regions, leading to strong financial performance [4] - The company's vertically integrated model, which includes year-round sourcing, owned production, and global marketing capabilities, positions Mission as a leader in driving global avocado consumption [5] Stock Performance - Following the earnings report, Mission Produce's stock increased by 4.66%, reaching $13.47 in extended trading [5]

[FORWARD LOOKING STATEMENTS](index=3&type=section&id=FORWARD%20LOOKING%20STATEMENTS) - Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements[10](index=10&type=chunk) - Risks related to our business include reliance on one main product, supply limitations, market price fluctuations, increasing competition, international business risks (e.g., Mexican and Peruvian conditions), inflationary pressures, supply chain disruptions, and inherent farming risks[16](index=16&type=chunk) - Risks related to our common stock include market volatility, concentration of control, significant costs of being a public company, and failure to maintain proper internal control over financial reporting[16](index=16&type=chunk) - Risks related to restrictive covenants under our credit facility could affect funding flexibility and lead to debt acceleration if non-compliance occurs[16](index=16&type=chunk) [PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the Company's unaudited condensed consolidated financial statements, prepared under U.S. GAAP, and related notes - Unaudited interim condensed consolidated financial statements are presented in accordance with U.S. GAAP and include consolidated domestic and international subsidiaries and VIEs[31](index=31&type=chunk) - All adjustments, of a normal recurring nature, considered necessary for a fair statement have been included[31](index=31&type=chunk) - Interim results of operations are not necessarily indicative of future results[31](index=31&type=chunk) [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Condensed Consolidated Balance Sheets (Unaudited) - Key Figures | Metric | July 31, 2025 (Millions) | October 31, 2024 (Millions) | Change (Millions) | % Change | | :--------------------------------- | :----------------------- | :------------------------ | :---------------- | :------- | | Total current assets | $284.7 | $279.0 | $5.7 | 2.0% | | Total assets | $1,002.4 | $971.5 | $30.9 | 3.2% | | Total current liabilities | $139.9 | $149.1 | $(9.2) | -6.2% | | Total liabilities | $401.9 | $394.4 | $7.5 | 1.9% | | Total equity | $600.5 | $577.1 | $23.4 | 4.1% | - Cash and cash equivalents decreased from **$58.0 million** to **$43.7 million**[21](index=21&type=chunk) - Long-term debt, net of current portion, increased from **$110.7 million** to **$128.5 million**[21](index=21&type=chunk) [Condensed Consolidated Statements of Income (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Unaudited)) Condensed Consolidated Statements of Income (Unaudited) - Key Figures | Metric (Millions) | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | YoY Change (Millions) | YoY % Change | 9 Months Ended July 31, 2025 | 9 Months Ended July 31, 2024 | YoY Change (Millions) | YoY % Change | | :---------------- | :--------------------------- | :--------------------------- | :-------------------- | :----------- | :--------------------------- | :--------------------------- | :-------------------- | :----------- | | Net sales | $357.7 | $324.0 | $33.7 | 10.4% | $1,072.2 | $880.3 | $191.9 | 21.8% | | Gross profit | $45.1 | $37.0 | $8.1 | 21.9% | $105.0 | $96.7 | $8.3 | 8.6% | | Operating income | $21.0 | $16.8 | $4.2 | 25.0% | $37.2 | $37.1 | $0.1 | 0.3% | | Net income | $14.5 | $12.1 | $2.4 | 19.8% | $23.7 | $21.1 | $2.6 | 12.3% | | Basic EPS | $0.21 | $0.17 | $0.04 | 23.5% | $0.31 | $0.27 | $0.04 | 14.8% | | Diluted EPS | $0.21 | $0.17 | $0.04 | 23.5% | $0.30 | $0.27 | $0.03 | 11.1% | - Gross profit as a percentage of sales increased from **11%** to **13%** for the three months ended July 31, 2025[23](index=23&type=chunk) - Selling, general and administrative expenses increased by **$3.9 million (19%)** for the three months and **$8.2 million (14%)** for the nine months ended July 31, 2025[23](index=23&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Key Figures | Metric (Millions) | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 9 Months Ended July 31, 2025 | 9 Months Ended July 31, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $14.5 | $12.1 | $23.7 | $21.1 | | Foreign currency translation adjustments | $0.0 | $0.1 | $0.5 | $0.6 | | Total comprehensive income, net of tax | $14.5 | $12.2 | $24.5 | $21.7 | | Comprehensive income attributable to Mission Produce | $14.7 | $12.5 | $22.5 | $20.0 | - Foreign currency translation adjustments were **$0.5 million** for the nine months ended July 31, 2025, down from **$0.6 million** in the prior year[24](index=24&type=chunk) [Condensed Consolidated Statements of Changes in Equity (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity%20(Unaudited)) Condensed Consolidated Statements of Changes in Equity (Unaudited) - Key Figures | Metric (Millions) | July 31, 2025 | October 31, 2024 | | :------------------------ | :------------ | :--------------- | | Common stock | $0.1 | $0.1 | | Additional paid-in capital| $244.1 | $239.7 | | Retained earnings | $323.9 | $307.7 | | Mission Produce shareholders' equity | $568.7 | $547.3 | | Noncontrolling interest | $31.8 | $29.8 | | Total equity | $600.5 | $577.1 | - Total equity increased by **$23.4 million** from October 31, 2024, to July 31, 2025[26](index=26&type=chunk) - The Company purchased and retired **$5.5 million** of common stock during the nine months ended July 31, 2025[27](index=27&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Condensed Consolidated Statements of Cash Flows (Unaudited) - Key Figures | Activity (Millions) | 9 Months Ended July 31, 2025 | 9 Months Ended July 31, 2024 | YoY Change (Millions) | | :------------------ | :--------------------------- | :--------------------------- | :-------------------- | | Operating Activities| $21.4 | $55.4 | $(34.0) | | Investing Activities| $(40.0) | $(26.0) | $(14.0) | | Financing Activities| $5.8 | $(22.9) | $28.7 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(12.7) | $6.7 | $(19.4) | | Cash, cash equivalents and restricted cash, end of period | $46.6 | $49.9 | $(3.3) | - Net cash provided by operating activities decreased by **$34.0 million**, primarily due to higher working capital requirements[27](index=27&type=chunk)[124](index=124&type=chunk) - Net cash used in investing activities increased by **$14.0 million**, driven by higher purchases of property, plant and equipment[27](index=27&type=chunk)[125](index=125&type=chunk) - Net cash provided by financing activities was **$5.8 million**, a significant improvement from **$22.9 million used** in the prior year, due to increased borrowings on revolving credit facility[27](index=27&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. General](index=11&type=section&id=1.%20General) - Mission Produce, Inc. is a global leader in the avocado industry, specializing in farming, packaging, marketing, and distribution of avocados and other fruits[30](index=30&type=chunk) - The Company operates in three segments: Marketing & Distribution, International Farming, and Blueberries[30](index=30&type=chunk) - The FASB issued several ASUs (**2025-05**, **2024-03**, **2023-09**, **2023-07**) related to credit losses, expense disaggregation, income tax disclosures, and segment reporting, which the Company is currently evaluating for impact[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [2. Inventory](index=12&type=section&id=2.%20Inventory) Inventory Composition (Millions) | Category | July 31, 2025 | October 31, 2024 | | :------------------ | :------------ | :--------------- | | Finished goods | $51.8 | $45.1 | | Crop growing costs | $30.9 | $27.1 | | Packaging and supplies | $20.7 | $19.0 | | **Total Inventory** | **$103.4** | **$91.2** | - Total inventory increased by **$12.2 million** from October 31, 2024, to July 31, 2025[36](index=36&type=chunk) [3. Goodwill](index=12&type=section&id=3.%20Goodwill) Goodwill by Segment (Millions) | Segment | July 31, 2025 | October 31, 2024 | | :------------------ | :------------ | :--------------- | | International Farming | $26.9 | $26.9 | | Blueberries | $12.5 | $12.5 | | **Total Goodwill** | **$39.4** | **$39.4** | - Goodwill is net of accumulated impairment losses of **$49.5 million**, attributable to the International Farming segment[37](index=37&type=chunk) - Goodwill is tested for impairment annually in the fourth quarter or when circumstances indicate potential impairment[37](index=37&type=chunk) [4. Details of Certain Account Balances](index=12&type=section&id=4.%20Details%20of%20Certain%20Account%20Balances) Accrued Expenses (Millions) | Category | July 31, 2025 | October 31, 2024 | | :---------------- | :------------ | :--------------- | | Employee-related | $20.3 | $22.1 | | Freight | $5.0 | $5.8 | | Outside fruit purchase | $3.9 | $4.7 | | Other | $9.4 | $7.3 | | **Total Accrued Expenses** | **$38.6** | **$39.9** | Other Long-Term Liabilities (Millions) | Category | July 31, 2025 | October 31, 2024 | | :------------------------ | :------------ | :--------------- |\n| Uncertain tax positions | $19.5 | $17.9 |\n| Employee-related | $2.6 | $2.2 |\n| Trade payables to noncontrolling interest holders | $1.7 | $3.5 |\n| Other | $1.7 | $2.4 |\n| **Total Other Long-Term Liabilities** | **$25.5** | **$26.0** | Other (Expense) Income, Net (Millions) | Category | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 9 Months Ended July 31, 2025 | 9 Months Ended July 31, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Gains (losses) on derivative financial instruments | $0.1 | $(0.1) | $0.0 | $(0.1) | | Foreign currency transaction (loss) gain | $(1.2) | $1.2 | $(1.4) | $(0.1) | | Interest income | $0.2 | $0.4 | $1.4 | $1.7 | | Other | $0.1 | $(0.2) | $0.1 | $(0.2) | | **Other (expense) income, net** | **$(0.8)** | **$1.3** | **$0.1** | **$1.3** | - Other (expense) income, net, shifted from income to expense for the three months and decreased for the nine months ended July 31, 2025, primarily due to foreign currency transaction losses[40](index=40&type=chunk)[104](index=104&type=chunk) [5. Variable Interest Entity](index=13&type=section&id=5.%20Variable%20Interest%20Entity) Variable Interest Entity Balances (Millions) | Category | July 31, 2025 | October 31, 2024 | | :------------------ | :------------ | :--------------- | | Current assets | $35.0 | $40.7 | | Long-term assets | $81.2 | $74.2 | | Current liabilities | $21.6 | $22.0 | | Long-term liabilities | $25.5 | $27.9 | - Assets of the blueberry joint-venture VIE can only be used to settle its own liabilities[42](index=42&type=chunk) [6. Debt](index=13&type=section&id=6.%20Debt) Long-Term Debt Under Credit Facility (Millions) | Debt Type | July 31, 2025 | October 31, 2024 | Interest Rate (July 31, 2025) | | :------------------ | :------------ | :--------------- | :---------------------------- | | Revolving line of credit | $40.0 | $20.0 | 5.94% | | Senior term loan (A-1) | $43.2 | $45.0

[Fiscal Third Quarter 2025 Financial Overview](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Financial%20Overview) Mission Produce achieved record Q3 FY2025 revenue and gross profit, driven by effective Peruvian production and operational excellence [CEO Message](index=1&type=section&id=CEO%20Message) - The commercial team effectively programmed owned Peruvian production to strategically deliver fruit into multiple global regions, ensuring supply consistency and **strong financial performance**[3](index=3&type=chunk) - The vertically integrated model, combining a year-round sourcing network, owned production, global marketing, distribution, and value-add services, drives category leadership and global consumption[3](index=3&type=chunk) - Generated **$34 million of operating cash flow** during the third quarter, with expectations to build on this in Q4 as owned-crop inventory is sold[3](index=3&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Fiscal Third Quarter 2025 Key Financial Highlights | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | | :----- | :------------------- | :------------------- | :--------- | | Total Revenue | $357.7 | $324.0 | +10% | | Net Income | $14.7 | $12.4 | +18.5% | | Diluted EPS | $0.21 | $0.17 | +23.5% | | Adjusted Net Income | $18.2 | $16.7 | +8.9% | | Adjusted Diluted EPS | $0.26 | $0.23 | +13.0% | | Adjusted EBITDA | $32.6 | $31.5 | +3% | [Consolidated Financial Review](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Consolidated%20Financial%20Review) Mission Produce reported a 10% revenue increase and 22% gross profit increase for Q3 FY2025, driven by higher avocado volume [Revenue and Gross Profit Analysis](index=1&type=section&id=Revenue%20and%20Gross%20Profit%20Analysis) Revenue and Gross Profit (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | | :----- | :------------------- | :------------------- | :--------- | | Total Revenue | $357.7 | $324.0 | +10% | | Gross Profit | $45.1 | $37.0 | +22% | | Gross Profit Percentage | 12.6% | 11.4% | +120 bps | - Revenue increase was primarily driven by a **10% increase in avocado volume sold** in the Marketing & Distribution segment, partially offset by a **5% decrease in average per-unit avocado sales prices**[4](index=4&type=chunk) - Gross profit increase was driven by the International Farming segment due to significantly higher avocado production and increased yields[5](index=5&type=chunk) [Operating Expenses and Net Income](index=1&type=section&id=Operating%20Expenses%20and%20Net%20Income) Operating Expenses and Net Income (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | | :----- | :------------------- | :------------------- | :--------- | | SG&A Expense | $24.1 | $20.2 | +19% | | Net Income | $14.7 | $12.4 | +18.5% | | Diluted EPS | $0.21 | $0.17 | +23.5% | - Selling, general and administrative (SG&A) expense increased primarily due to higher employee-related costs, including incentive and performance-based stock compensation, and higher statutory profit sharing in the International Farming segment[6](index=6&type=chunk) [Adjusted Financial Metrics](index=2&type=section&id=Adjusted%20Financial%20Metrics) Adjusted Financial Metrics (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | | :----- | :------------------- | :------------------- | :--------- | | Adjusted Net Income | $18.2 | $16.7 | +8.9% | | Adjusted Diluted EPS | $0.26 | $0.23 | +13.0% | | Adjusted EBITDA | $32.6 | $31.5 | +3% | - Adjusted net income growth was driven by increased operating income, a **$0.8 million reduction in interest expense**, and a **$0.3 million increase in equity method income**[9](index=9&type=chunk) - Adjusted EBITDA increased primarily due to higher avocado production in the International Farming segment[10](index=10&type=chunk) [Business Segment Performance](index=2&type=section&id=Fiscal%20Third%20Quarter%20Business%20Segment%20Performance) Marketing & Distribution net sales rose 7% but adjusted EBITDA declined, while International Farming and Blueberries segments showed strong growth [Marketing & Distribution](index=2&type=section&id=Marketing%20%26%20Distribution) Marketing & Distribution Segment Performance (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | | :----- | :------------------- | :------------------- | :--------- | | Net Sales | $344.1 | $321.3 | +7% | | Segment Adjusted EBITDA | $20.0 | $26.8 | -25.4% | - Segment adjusted EBITDA decline reflects the normalization of per-unit avocado gross margin, which had significantly exceeded historical averages in the prior year[12](index=12&type=chunk) [International Farming](index=2&type=section&id=International%20Farming) International Farming Segment Performance (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | | :----- | :------------------- | :------------------- | :--------- | | Total Sales | $49.0 | $27.4 | +79% | | Segment Adjusted EBITDA | $12.1 | $4.6 | +163% | - Increases were driven by higher yield from owned avocado orchards and increased volume of avocado packing and cooling services provided to third parties[14](index=14&type=chunk) - Affiliated sales are concentrated in the second half of the fiscal year, aligning with the Peruvian avocado harvest season (April-September)[13](index=13&type=chunk) [Blueberries](index=2&type=section&id=Blueberries) Blueberries Segment Performance (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 (Millions) | Q3 FY2024 (Millions) | YoY Change | | :----- | :------------------- | :------------------- | :--------- | | Net Sales | $4.5 | $1.6 | +181% | | Segment Adjusted EBITDA | $0.5 | $0.1 | +400% | - Net sales increase primarily due to higher volume produced on farms and higher average per-unit sales price[15](index=15&type=chunk) - Sales in the Blueberries segment are traditionally concentrated in the first and fourth quarters, aligning with the Peruvian blueberry harvest season[15](index=15&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) Cash and cash equivalents decreased, operating cash flow declined due to higher working capital, and capital expenditures rose [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) Cash and Cash Equivalents | Metric | July 31, 2025 (Millions) | October 31, 2024 (Millions) | Change | | :----- | :----------------------- | :-------------------------- | :----- | | Cash and cash equivalents | $43.7 | $58.0 | -$14.3 | [Cash Flow Activities](index=2&type=section&id=Cash%20Flow%20Activities) Cash Flow Summary (9 Months Ended July 31) | Metric | 2025 (Millions) | 2024 (Millions) | Change | | :----- | :-------------- | :-------------- | :----- | | Net cash provided by operating activities | $21.4 | $55.4 | -$34.0 | | Capital expenditures | $39.8 | $25.3 | +$14.5 | - Higher working capital requirements in the current year were due to significantly higher avocado production and harvest timing in the International Farming segment, leading to increased inventory and lower payable balances[19](index=19&type=chunk) - Capital expenditures were primarily for pre-production orchard maintenance, land improvements, packhouse construction in Guatemala, and land development/blueberry plant cultivation in Peru[20](index=20&type=chunk) [Outlook for Fiscal Year 2025 Fourth Quarter](index=3&type=section&id=Outlook) Q4 FY2025 anticipates higher avocado volumes with lower pricing, increased blueberry volumes, and capital expenditures of $50-$55 million - Avocado industry volumes are expected to be approximately **15% higher in Q4 FY2025 YoY**, due to ample Peruvian product and a larger new Mexican crop[27](index=27&type=chunk) - Exported production from Mission's owned farms in Peru is expected to range between **105 million to 110 million pounds** for the 2025 harvest season (up from 43 million pounds in 2024)[27](index=27&type=chunk) - Avocado pricing is expected to be lower by approximately **20-25% YoY in Q4 FY2025**, correlated with higher available volumes[27](index=27&type=chunk) - Peruvian blueberry harvest will ramp up in Q4, with meaningful volume increases from owned farms likely offset by lower average sales prices[27](index=27&type=chunk) - Total capital expenditures for fiscal 2025 are expected to remain in the range of **$50 to $55 million**[27](index=27&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines adjusted net income and adjusted EBITDA, non-GAAP measures used by management to analyze business results [Definition of Adjusted Net Income](index=3&type=section&id=Definition%20of%20Adjusted%20Net%20Income) - Adjusted net income (loss) is net income (loss) attributable to Mission Produce, adjusted for stock-based compensation, unrealized gains/losses on derivatives, foreign currency gains/losses, farming costs for nonproductive orchards, deferred ERP costs, transaction costs, amortization of inventory adjustments and intangible assets from business combinations, and other special, non-recurring, or one-time distortive items, including tax effects and noncontrolling interest impacts[24](index=24&type=chunk) [Definition of Adjusted EBITDA](index=3&type=section&id=Definition%20of%20Adjusted%20EBITDA) - Adjusted EBITDA is net income (loss) before interest, taxes, depreciation, amortization, stock-based compensation, other income/expense, and equity method income/loss, further adjusted for asset impairment/disposals, farming costs for nonproductive orchards, deferred ERP costs, transaction costs, and other special, non-recurring, or one-time items, including noncontrolling interest impacts[25](index=25&type=chunk) - Effective Q4 2024, the reconciliation of adjusted EBITDA includes a subtotal for non-GAAP adjustments before the noncontrolling interest adjustment, called 'adjusted EBITDA before adjustment for noncontrolling interest,' to better align with management's review sequence[25](index=25&type=chunk) [About Mission Produce, Inc.](index=3&type=section&id=About%20Mission%20Produce%2C%20Inc.) Mission Produce is a global leader in sourcing, producing, and distributing fresh Hass avocados and mangos globally - Mission Produce is a global leader in sourcing, producing, and distributing fresh Hass avocados and mangos to retail, wholesale, and foodservice customers in over **25 countries**[1](index=1&type=chunk)[27](index=27&type=chunk) - The company is vertically integrated, owning five state-of-the-art packing facilities across the U.S., Mexico, Peru, and Guatemala, and sourcing from **20+ premium growing regions** for year-round supply[28](index=28&type=chunk) - Mission's global distribution network includes strategically positioned forward distribution centers offering value-added services like ripening, bagging, custom packing, and logistical management[28](index=28&type=chunk) [Forward-Looking Statements & Contacts](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Contacts) This section provides a standard disclaimer for forward-looking statements, outlining risks and uncertainties, and lists contacts [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) - The press release contains forward-looking statements involving known and unknown risks and uncertainties, as defined by federal securities laws[29](index=29&type=chunk) - Actual results could differ materially due to factors such as reliance on one main product, supply limitations, market price fluctuations, increasing competition, international business risks, inflationary pressures, and inherent farming risks including climate change[29](index=29&type=chunk) [Contacts](index=4&type=section&id=Contacts) - Investor Relations: Jeff Sonnek, ICR, 646-277-1263, jeff.sonnek@icrinc.com[30](index=30&type=chunk) - Media: Jenna Aguilera, Marketing Content and Communications Manager, Mission Produce, Inc., press@missionproduce.com[30](index=30&type=chunk) [Financial Statements (Unaudited)](index=5&type=section&id=Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Mission Produce [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (Unaudited) | (In millions) | July 31, 2025 | October 31, 2024 | | :------------ | :------------ | :--------------- | | Total Assets | $1,002.4 | $971.5 | | Total Liabilities | $401.9 | $394.4 | | Total Equity | $600.5 | $577.1 | | Cash and cash equivalents | $43.7 | $58.0 | | Inventory | $103.4 | $91.2 | | Long-term debt, net of current portion | $128.5 | $110.7 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (Unaudited) | (In millions, except per share amounts) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $357.7 | $324.0 | $1,072.2 | $880.3 | | Gross profit | $45.1 | $37.0 | $105.0 | $96.7 | | Operating income | $21.0 | $16.8 | $37.2 | $37.1 | | Net income attributable to Mission Produce | $14.7 | $12.4 | $21.7 | $19.4 | | Diluted EPS | $0.21 | $0.17 | $0.30 | $0.27 | [Condensed Consolidated Statements of Cash Flow](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Condensed Consolidated Statements of Cash Flow (Unaudited) | (In millions) | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------ | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $21.4 | $55.4 | | Net cash used in investing activities | $(40.0) | $(26.0) | | Net cash provided by (used in) financing activities | $5.8 | $(22.9) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(12.7) | $6.7 | | Cash, cash equivalents and restricted cash, end of period | $46.6 | $49.9 | [Reconciliation of Non-GAAP Financial Measures to GAAP (Unaudited)](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20to%20GAAP%20(Unaudited)) This section provides detailed reconciliations of non-GAAP financial measures, Adjusted Net Income and Adjusted EBITDA, to their GAAP equivalents [Adjusted Net Income Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20Reconciliation) Adjusted Net Income Reconciliation (Unaudited) | (In millions, except per share amounts) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income attributable to Mission Produce | $14.7 | $12.4 | $21.7 | $19.4 | | Stock-based compensation | $1.7 | $1.5 | $5.6 | $4.5 | | Foreign currency transaction (gain) loss | $1.2 | $(1.2) | $1.4 | $0.1 | | Mission Produce adjusted net income | $18.2 | $16.7 | $34.0 | $33.2 | | Mission Produce adjusted net income per diluted share | $0.26 | $0.23 | $0.48 | $0.47 | [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA Reconciliation (Unaudited) | (In millions) | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Nine Months Ended July 31, 2025 | Nine Months Ended July 31, 2024 | | :------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $14.5 | $12.1 | $23.7 | $21.1 | | Interest expense | $2.4 | $3.2 | $7.1 | $9.9 | | Provision for income taxes | $5.3 | $4.5 | $10.2 | $10.0 | | Depreciation and amortization | $8.4 | $8.9 | $24.1 | $27.5 | | Stock-based compensation | $1.7 | $1.5 | $5.6 | $4.5 | | Total adjusted EBITDA | $32.6 | $31.5 | $69.4 | $70.9 | [Other Information (Unaudited)](index=12&type=section&id=Other%20Information%20(Unaudited)) This section provides supplementary unaudited financial data, including segment sales, avocado sales volume and pricing, and total net sales [Segment Sales](index=12&type=section&id=Segment%20Sales) Segment Sales (Unaudited) | (In millions) | Marketing & Distribution (Q3 2025) | International Farming (Q3 2025) | Blueberries (Q3 2025) | Total (Q3 2025) | Marketing & Distribution (Q3 2024) | International Farming (Q3 2024) | Blueberries (Q3 2024) | Total (Q3 2024) | | :------------ | :--------------------------------- | :------------------------------ | :-------------------- | :-------------- | :--------------------------------- | :------------------------------ | :-------------------- | :-------------- | | Third party sales | $344.1 | $9.1 | $4.5 | $357.7 | $321.3 | $1.1 | $1.6 | $324.0 | | Affiliated sales | — | $39.9 | — | $39.9 | — | $26.3 | — | $26.3 | | Total segment sales | $344.1 | $49.0 | $4.5 | $397.6 | $321.3 | $27.4 | $1.6 | $350.3 | | Intercompany eliminations | — | $(39.9) | — | $(39.9) | — | $(26.3) | — | $(26.3) | | Total net sales | $344.1 | $9.1 | $4.5 | $357.7 | $321.3 | $1.1 | $1.6 | $324.0 | [Avocado Sales](index=12&type=section&id=Avocado%20Sales) Avocado Sales (Unaudited) | Metric | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 9 Months Ended July 31, 2025 | 9 Months Ended July 31, 2024 | | :----- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Pounds of avocados sold (millions) | 183.5 | 166.1 | 509.8 | 486.2 | | Average sales price per pound | $1.74 | $1.84 | $1.83 | $1.62 | [Sales by Type](index=12&type=section&id=Sales%20by%20Type) Sales by Type (Unaudited) | (In millions) | 3 Months Ended July 31, 2025 | 3 Months Ended July 31, 2024 | 9 Months Ended July 31, 2025 | 9 Months Ended July 31, 2024 | | :------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Avocado | $327.0 | $306.9 | $938.8 | $786.7 | | Other | $30.7 | $17.1 | $133.4 | $93.6 | | Total net sales | $357.7 | $324.0 | $1,072.2 | $880.3 |

Achieved record fiscal third quarter revenue and gross profitOXNARD, Calif., Sept. 08, 2025 (GLOBE NEWSWIRE) -- Mission Produce, Inc. (NASDAQ: AVO) (“Mission” or “the Company”) a world leader in sourcing, producing, and distributing fresh Hass avocados, today reported its financial results for the fiscal third quarter ended July 31, 2025. Fiscal Third Quarter 2025 Financial Overview: Total revenue increased 10% to $357.7 million compared to the same period last yearNet income of $14.7 million, or $0.21 per ...

Core Insights - Mission Produce, Inc. (AVO) has reported record second-quarter fiscal 2025 revenues of $380.3 million, reflecting a 28% year-over-year increase, showcasing its effective global sourcing and distribution capabilities [1][8] - The company is diversifying beyond avocados into complementary fruits like mangos and blueberries, with mango volumes reaching record levels and positioning AVO as the second-largest distributor in the U.S. [2] - AVO's international farming investments, particularly in Peru, are crucial as the company anticipates a 150% increase in avocado volume this season following a weather-impacted harvest last year [3][8] Company Strategy - Mission Produce is leveraging its sourcing, ripening, and logistics expertise to expand its product offerings, aiming to capture new consumer demand and maximize the utilization of its global infrastructure [2] - The company’s ability to balance supply across regions while scaling newer categories will be essential for solidifying its reputation as a reliable global produce partner [3] Competitive Landscape - Mission Produce faces competition from Calavo Growers, Inc. (CVGW) and Fresh Del Monte Produce Inc. (FDP), both of which are enhancing their market presence through unique strategic strengths [4] - Calavo is focusing on global sourcing and expanding its produce portfolio to meet evolving consumer preferences, while FDP offers a diversified range of fruits and vegetables supported by vertically integrated farming [5][6] Financial Performance - AVO's shares have increased by 19.3% over the last three months, outperforming the industry growth of 7.7% [7] - The company trades at a forward price-to-earnings ratio of 25.64X, significantly higher than the industry average of 15.30X [9] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 20.3% for both fiscal 2025 and 2026, with estimates remaining unchanged over the past week [10]

Core Insights - Mission Produce, Inc. (AVO) stock showed a slowdown in August with a gain of 2.5%, underperforming the Zacks Agriculture – Operations industry and the Consumer Staples sector, which increased by 6.6% and 3% respectively, but slightly outperformed the S&P 500's growth of 2.4% [1][2] Stock Performance - AVO stock is currently priced at $12.65, which is 32.3% above its 52-week low of $9.56 and 17% below its 52-week high of $15.25, indicating potential for upside [6] - The stock trades above its 50-day and 200-day simple moving averages (SMA), suggesting a bullish sentiment [6] Revenue and Profitability - Despite record Q2 revenues driven by higher avocado prices, AVO faced challenges with flat volumes and rising costs that negatively impacted margins [8][9] - Gross profit declined due to tariffs, costs from Canadian facility closures, and sourcing challenges [9] - Adjusted EBITDA also declined, particularly in the Marketing & Distribution segment, while rising SG&A expenses further pressured earnings [10] Future Outlook - Management anticipates lower avocado pricing due to a strong Peruvian harvest, which may temper revenue growth [10] - The Zacks Consensus Estimate for AVO's fiscal 2025 sales implies an 8.1% year-over-year growth, while EPS is expected to fall by 20.3% [12] Valuation - AVO is trading at a forward P/E of 30.8X, significantly higher than the industry average of 15.59X and the S&P 500's average of 22.88X, reflecting high investor expectations [15][16] - Competitors like Archer Daniels and Corteva have lower forward P/E ratios, indicating a premium valuation for AVO [15] Competitive Position - AVO's fundamentals suggest solid long-term growth potential, supported by a vertically integrated operation and a global sourcing network [17][20] - Diversification into mangoes and blueberries adds resilience, with management showing confidence through recent share repurchases [19][20] Conclusion - While AVO faces near-term challenges such as margin volatility and elevated costs, its strong fundamentals and market position suggest potential for long-term growth once these headwinds stabilize [21][22]