Mission Produce Earnings: Record Q2 Revenue Despite Margin Pressures
- Hardik Shah
- Jun 7
- 3 min read
TLDR
Record Q2 Revenue: Sales jumped 28% to $380.3M, led by a 26% rise in avocado prices.
Margins Under Pressure: Adjusted EBITDA fell 5% YoY to $19.1M due to higher sourcing costs and temporary tariffs.
Strategic Momentum: Mango business hit record volume; UK expansion and Peruvian farming poised for strong H2.
Business Overview
Mission Produce, Inc. (NASDAQ: AVO) is a global leader in the sourcing, production, and distribution of Hass avocados and mangos. With operations across 25+ countries, Mission operates a vertically integrated model including avocado and mango orchards, five packing facilities, and a global ripening and distribution network. The company is expanding into blueberries as part of its diversification strategy and holds a strong presence in North America, the UK, Europe, and China.
Mission Produce Earnings Q2'25:
Revenue: $380.3M, up 28% YoY
Net Income: $3.1M vs. $7.0M YoY
Adjusted Net Income: $8.7M (down from $9.8M YoY)
Adjusted EBITDA: $19.1M, down 5% YoY
Gross Profit: $28.4M (7.5% margin, down 290 bps)
The results were driven by a 26% increase in avocado prices despite flat volumes. However, profitability was constrained by sourcing challenges in Mexico, $1.1M in unexpected short-term tariffs, and $1.5M in facility closure costs in Canada.
Forward Guidance
For Q3 FY25, Mission projects:
Avocado volumes: +10–15% YoY due to a strong Peruvian harvest
Exportable production from Peru: 100M–110M lbs (vs. 43M lbs in 2024)
Pricing: Expected to decline 10–15% YoY, reflecting higher global supply
CapEx: Remains unchanged at $50M–$55M for FY25
“Our orchards have recovered… we expect production to be up ~50% this season.” – Steve Barnard, CEO
Operational Performance
Marketing & Distribution Segment:
Revenue: $362.5M (+26% YoY)
Adjusted EBITDA: $16.8M (vs. $21.7M prior year)
Performance impacted by Mexican supply tightness early in the quarter; normalized later with supply from California and Peru.
International Farming Segment:
Revenue: $8.1M (+479% YoY)
EBITDA: $1.5M (vs. –$2.2M last year)
Boosted by strong mango yields and blueberry service volumes.
Blueberries Segment:
Revenue: $15.7M (+57% YoY)
EBITDA: Flat YoY; higher volume offset by lower margins.
Market Insights
Elevated avocado prices in early Q2 highlighted resilient consumer demand. Despite uncertainty around USMCA tariffs, disruptions were minimal, and suppliers adapted quickly. Mangoes and blueberries show promising growth trends tied to health-conscious consumer behavior.
“Mangoes contributed strongly… we achieved record volumes and significant market share gains.” – Steve Barnard, CEO
Strategic Initiatives
Mission continues to diversify its portfolio and expand infrastructure:
Mango Business: Achieved near 10% U.S. market share, becoming the #2 distributor.
UK Expansion: High customer penetration and optimized utilization of new distribution center.
Blueberry Growth: 100+ new hectares planted; targeting 200 more to meet growing demand.
Mexico Infrastructure: Internal capacity upgrades to mitigate reliance on co-packers.
“Our diversification strategy is delivering exactly what we designed it to do.” – Steve Barnard, CEO
Capital Allocation
Share Buybacks: $5.2M repurchased during Q2; $14M remaining under board authorization.
CapEx: $28M YTD (Guatemala packhouse, orchard development in Peru)
Cash & Liquidity: $36.7M in cash; working capital impacted by seasonal builds and high pricing.
The Bottom Line
Mission Produce is navigating a dynamic operating environment with agility, recording record revenue while facing margin pressures. Strategic investments in farming, distribution, and product diversification are paying off—especially in mangoes and international growth. Investors should watch for Q3 pricing compression, H2 Peruvian harvest execution, and continued share repurchase activity.
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