Mission Produce® Announces Fiscal 2025 First Quarter Financial Results

Core Insights - Mission Produce achieved record fiscal first quarter revenue of $334.2 million, a 29% increase year-over-year, driven by higher prices and volumes in the Marketing & Distribution segment [3][9] - The company reported net income of $3.9 million, or $0.05 per diluted share, compared to breakeven in the same period last year, reflecting improved operational performance despite industry challenges [6][9] - The Marketing & Distribution segment saw a 32% increase in net sales to $295.8 million, primarily due to a 25% rise in average per-unit avocado selling prices [10][9] Financial Overview - Total revenue for the first quarter increased by $75.5 million, or 29%, to $334.2 million compared to the same period last year [3][9] - Gross profit rose by $2.8 million to $31.5 million, with a gross profit percentage of 9.4%, down 170 basis points from the previous year [4][9] - Selling, general and administrative expenses increased by $1.5 million, or 7%, to $22.2 million, mainly due to higher employee-related costs [5][9] Segment Performance - The Marketing & Distribution segment's adjusted EBITDA decreased to $9.7 million from $11.0 million due to lower per-unit gross margins on avocados sold [10][9] - The International Farming segment's total sales increased by 59% to $9.2 million, driven by higher blueberry packing service revenue [12][9] - The Blueberries segment reported a 12% increase in net sales to $36.4 million, although adjusted EBITDA decreased by 29% to $6.2 million due to lower selling prices [14][15] Balance Sheet and Cash Flow - Cash and cash equivalents decreased to $40.1 million as of January 31, 2025, down from $58.0 million as of October 31, 2024 [16][9] - Net cash used in operating activities was $1.2 million, a decline from cash provided by operating activities of $9.5 million in the same period last year, primarily due to increased working capital [17][9] - Capital expenditures for the quarter were $14.8 million, up from $9.9 million in the prior year, focused on avocado orchard development and blueberry plant cultivation [18][9] Outlook - For the second quarter of fiscal year 2025, industry volumes are expected to be consistent with the prior year, with pricing projected to be approximately 5% higher compared to the same period last year [19][9]