Mission Produce, Inc. Q2 FY2025 earnings call

• Delivered record second quarter revenue of $380.3 million, up 28% vs prior year. • Marketing and distribution segment had solid results, leveraging global sourcing network. • Mango business achieved record volumes and market share gains. • Blueberry segment expanded with over 550 hectares of plantings. • Improved balance sheet leverage with $5.2 million share repurchases in Q2. • Capital expenditures for fiscal year-to-date at $28 million, with full-year guidance $50-55 million.

Marketing and distribution segment net sales increased 26% to $362.5 million for the quarter, with segment adjusted EBITDA $16.8 million compared to $21.7 million last year. International Farming segment total sales increased $6.7 million to $8.1 million, and segment adjusted EBITDA increased $3.7 million to a positive $1.5 million. Blueberry segment net sales increased 57% to $15.7 million, with segment adjusted EBITDA flat compared to prior year.

• Industry volumes expected 10%-15% higher in fiscal 2025 Q3 vs prior year, driven by strong Peruvian harvest. • Exportable avocado production from Mission's own farms in Peru expected 100-110 million pounds, vs 43 million last year. • Pricing expected lower by 10%-15% y-o-y in fiscal 2025 Q3. • Full-year fiscal 2025 CapEx guidance $50-55 million, including $10 million rolled over from 2024.

• Tariff uncertainties with countries from which fruit is imported. • Weather-related impacts on crop yields in prior years, though orchards recovered. • Potential supply chain disruptions during tariff negotiations periods.

Q: Elaborate on Peruvian fruit quality and sizing outlook.

A: Steve Barnard and John Pawlowski noted fruit quality is excellent so far, sizing mostly good with some large size but not a big percentage, and teams are prepared for forecasting.

Q: Relative level of co-packer volume in Q2 and if normalized.

A: John Pawlowski said they leveraged other source markets like Peru and California to get to more normalized levels, with plans to add capacity in Mexico packhouses.

Q: Changes in behavior observed during tariff uncertainty.

A: John Pawlowski mentioned skittish behavior in Jan-Feb, but smooth sailing since April with no disruptions. Bryan Giles added on industry relief and volume impact.

Q: Mango market share and future growth.

A: John Pawlowski said market share moved from below 5% to closer to 10%, with room for growth from maturing Peruvian orchards and building grower relationships globally.