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Jan 31
Mission Produce Q1 2025 Earnings Report
Mission Produce reported strong revenue growth and increased avocado volumes in Q1 FY25 despite supply challenges.
Key Takeaways
Mission Produce's Q1 FY25 revenue increased 29% year-over-year to $334.2 million, driven by higher avocado pricing and volume growth. The company reported a net income of $3.9 million and a diluted EPS of $0.05. Despite lower per-unit gross margins on fruit sold, strong demand and strategic investments in the Blueberries segment contributed to overall profitability.
Q1 revenue increased 29% year-over-year to $334.2 million.
Avocado sales volume grew 5% to 159.9 million pounds.
Net income reached $3.9 million, up from breakeven last year.
Free cash flow was negative due to increased working capital and capital expenditures.
Mission Produce
Mission Produce
Mission Produce Revenue by Segment
Revenue by Segment
Marketing & Distribution Revenue
CapyFin.comInternational Farming Revenue
CapyFin.comBlueberries Revenue
CapyFin.com Forward Guidance
Mission Produce expects stable industry volumes in Q2 FY25, with continued strong avocado pricing and increased blueberry volumes. The company plans capital expenditures between $50M and $55M for the year.
Positive Outlook
- Avocado pricing expected to increase by 5% year-over-year.
- California and Peru harvests anticipated to start earlier due to improved weather.
- Blueberry sales expected to increase by 35-40% in Q2.
- No significant impact expected from industry-wide supply constraints.
- Strong balance sheet supports continued investment in growth initiatives.
Challenges Ahead
- Potential impact of tariffs on Mexican avocado supply remains uncertain.
- Per-unit avocado margins remain pressured by higher fruit costs.
- Negative free cash flow due to working capital and capital expenditures.
- Competitive pressures in the fresh produce industry.
- Foreign exchange fluctuations could impact international sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income