Thu, Jun 5, 8:37 PM (15 days ago)
**Mission Produce, Inc. (AVO) Q2 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q2 2025 revenue was $380.3 million, up 28% from $297.6 million in Q2 2024. Year-to-date (YTD) revenue was $714.5 million, up 28% from $556.3 million in the prior year. - **Profit Margins:** Gross profit margin decreased to 7.5% in Q2 2025 from 10.4% in Q2 2024, due to lower per-unit margins on avocados and higher costs. YTD gross profit margin was 8.4%, down from 10.7% in the prior year. - **Net Income:** Q2 2025 net income was $3.0 million, down from $7.0 million in Q2 2024. YTD net income was $9.2 million, slightly up from $9.0 million in the prior year. - **Cash Flow:** Operating cash flow was negative $13.0 million in the first half of 2025, compared to positive $12.9 million in the prior year, due to increased working capital requirements. **Segment Performance:** - **Marketing & Distribution:** Revenue increased by 26% in Q2 and 29% YTD, driven by higher avocado prices. However, adjusted EBITDA decreased by 23% in Q2 and 19% YTD due to lower margins and higher SG&A expenses. - **International Farming:** Revenue increased significantly due to higher pricing and yield from owned mango orchards and increased blueberry packing services. Adjusted EBITDA improved by 168% in Q2 and 222% YTD. - **Blueberries:** Revenue increased by 57% in Q2 and 23% YTD, driven by higher volume. However, adjusted EBITDA was flat in Q2 and decreased by 26% YTD due to lower per-unit margins. **Trends and Uncertainties:** - **Tariffs:** The company faced $1.1 million in tariffs on Mexican imports for three days in March 2025, which could not be passed on to customers due to the short duration. - **Supply Chain:** The closure of Canadian distribution centers resulted in $2.9 million in charges for the first half of 2025. - **Legal Proceedings:** The company is involved in several legal proceedings, with outcomes uncertain. No loss contingencies have been accrued. - **Capital Expenditures:** The company expects to spend between $50 to $55 million in fiscal 2025 on capital projects, primarily in the International Farming and Blueberries segments. **Future Operations Impact:** - **Supply and Demand:** The company continues to monitor regulatory changes and their impact on the industry, actively strategizing to align pricing with policy changes. - **Liquidity:** The company is in compliance with all financial covenants of its credit facility as of April 30, 2025. It has a total borrowing capacity of $250 million under its syndicated credit facility.