Mission Produce, Inc. Q3 FY2025 earnings call

• Record third quarter revenue of $357 million, up 10%. • Marketing & Distribution segment delivered strong results with $344.1 million in sales, 10% increase in avocado volumes sold with average per unit prices down 5%. • International Farming segment had gross sales up 79% due to recovery in Peruvian avocado production. • Blueberries segment saw net sales increase to $4.5 million from $1.6 million, benefiting from expanded acreage. • Diversification in mangoes and blueberries continues to show growth. • European sales increased 37% in Q3, Asia saw broader reach with new customers. • Preparations for Mexican season with enhancements to packhouses to improve capacity.

Marketing & Distribution: Net sales $344.1 million (7% increase), segment adjusted EBITDA $20 million. International Farming: Gross sales $49 million (79% increase), segment adjusted EBITDA $12.1 million (163% increase). Blueberries: Net sales $4.5 million (from $1.6 million), adjusted EBITDA $0.4 million. Revenue for third quarter was $357 million, up 10%.

• Full year fiscal 2025 CapEx guidance $50 million to $55 million. • Near-term industry volumes expected 15% higher in Q4 vs prior year due to ample Peruvian product and larger Mexican crop. • Avocado pricing expected to be 20%-25% lower year-over-year in Q4. • Blueberries harvest to ramp up in Q4 with volume increases but partially offset by lower average sales prices.

• Annualized direct tariff impact on avocado and mango imports to U.S. ~$10 million, less than 1% of total cost of goods. • Potential shifts in supply and demand dynamics due to tariff environment.

Q: Could you note the impact of tariffs seen in Q3 or first 9 months?

A: Spent over $5 million on tariff-related expenses through 9 months ended, expect Q4 to be in line with Q3, lower selling prices on Peru to U.S. product.

Q: How has the tariff environment impacted order of trade?

A: No significant shifting of product placement, went where demand was. Tariff situation stabilized, no major reallocation of product.

Q: Talk about blueberry acreage expansion from 2025 to 2026 and beyond?

A: Target of ~600-1000 hectares net for blueberries, close to 1,000 hectares by end of year, ramping production over 2026-2028. No big plans for avocado acreage expansion, focusing on mango partnerships.

Q: Talk about international side, opportunities and investments?

A: U.K. facility gaining steam, brought global sourcing to key retailers with volume and profitability increases. Europe has a partner, potential inorganic play long term. Asia has upgraded team, working on strategic partnerships.

Q: SG&A run rate go-forward?

A: SG&A has variable component, profit sharing in Farming segment, over 50% increase in Q3 due to variable costs, hard to peg specific run rate as not fixed.