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]

Core Viewpoint - Mission Produce, Inc. will release its financial results for the fiscal second quarter ended April 30, 2025, on June 5, 2025, after market close, followed by a conference call to discuss the results [1]. Group 1: Financial Results Announcement - The financial results will be released after market closes on June 5, 2025 [1]. - A conference call and webcast will be held at 5:00 PM Eastern Time on the same day to discuss the financial results [1]. Group 2: Conference Call Details - The conference call can be accessed live by dialing (877) 407-9039 for domestic callers and (201) 689-8470 for international callers [2]. - A replay of the call will be available until June 19, 2025, with specific dialing instructions for both domestic and international callers [2]. Group 3: Company Overview - Mission Produce is a global leader in the avocado business, also offering mangos and blueberries, and has been in operation since 1983 [4]. - The company services retail, wholesale, and foodservice customers in over 25 countries and operates four packing facilities in key growing locations [4]. - Mission Produce has a vertically integrated supply chain and a global distribution network, providing year-round supply of premium fruit [4].

Financial Data and Key Metrics Changes - The company achieved record first quarter revenue of $334.2 million, a 29% increase compared to the same period last year [5][13] - Gross profit increased by $2.8 million to $31.5 million, although gross profit margin decreased by 170 basis points to 9.4% of revenue [13][15] - Adjusted net income for the quarter was $7.1 million or $0.10 per diluted share, compared to $6.7 million or $0.09 per diluted share last year [15] Business Line Data and Key Metrics Changes - The Marketing and Distribution segment net sales increased 32% to $295.8 million, driven by a 25% increase in per unit avocado selling prices and a 5% increase in avocado volume sold [5][16] - The International Farming segment sales increased 59% to $9.2 million, with adjusted EBITDA improving to $1.8 million from a loss of $0.5 million in the prior year [17] - The blueberry segment saw a 12% increase in revenue to $36.4 million, driven by a 70% increase in volumes sold, although average per unit selling prices decreased by 33% [18] Market Data and Key Metrics Changes - The company faced industry supply challenges in Mexico, impacting avocado supply and necessitating increased procurement through co-packers and spot market purchases [5][8] - The company expects industry volumes in the second quarter of fiscal 2025 to be consistent with the prior year, with pricing expected to be higher by approximately 5% [20] Company Strategy and Development Direction - The company is strategically diversifying its sourcing footprint to include key growing regions such as Peru, Colombia, and Guatemala to ensure reliable year-round supply [9][10] - The company is expanding its blueberry and mango segments, investing in new plantings and premium varietals to capitalize on growing consumer demand for healthy snacks [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply challenges and highlighted the importance of their diversified business model [9][11] - The company remains optimistic about future opportunities and is focused on operational excellence and prudent capital allocation [11][12] Other Important Information - Cash and cash equivalents were $40.1 million as of January 31, 2025, with capital expenditures of $14.8 million for the quarter [19] - The company anticipates a normal seasonal unwinding of working capital strains in the second half of the fiscal year [31][32] Q&A Session Summary Question: Can you elaborate on sourcing from co-packers? - Management noted that sourcing from co-packers was higher than typical due to a slight decrease in the overall crop in Mexico, but they expect to secure more direct inventory soon [24][25][26] Question: What is the visibility on unwinding working capital? - Management indicated that working capital strains are normal for the first half of the fiscal year and expect to unwind in the second half as they transition to harvesting their own fruit [31][32] Question: Have you observed changes in supplier behavior due to tariffs? - Management observed more supplier conversations leading up to the March tariff announcement, but overall supply remained consistent and they were able to meet customer requirements [34][35]