Mission Produce, Inc. Q4 FY2025 earnings call

• Leadership Transition: John Pawlowski to succeed Steve Barnard as CEO, Steve to Executive Chairman, with Steve to support and work with board.
• Fiscal 2025 Results: Record revenue $1.39B (13% growth), 691M lbs avocados sold (7% volume growth), record adjusted EBITDA in Q4, $180M+ operating cash flow over 2 years.
• Global Execution: Integrated global platform enabled real-time adjustments, UK revenue up >60%, Europe volumes up 40%.
• Farming Segments: Peruvian avocado orchards recovered yields, blueberries new plantings in Peru, mango market share growth.
• Organizational Strengthening: Focus on culture, data tools, disciplined decision-making to enhance execution.

Marketing and Distribution

• Fiscal 2025: Record revenue of $1.39 billion, growing 13% with 7% volume growth to 691 million pounds of avocados sold.
• Fourth Quarter 2025: Revenue $319 million, down 10% from prior year due to lower avocado prices but 13% volume growth. Gross profit $55.7 million, flat with prior year, gross margin 17.5% (up 180bps). SG&A up $500k, adjusted net income $22.2 million ($0.31 per diluted share). Adjusted EBITDA $41.4 million (up 12%). Total segment sales down 15% to $271.9 million, segment adjusted EBITDA up 11% to $28.3 million.

International Farming

• Fiscal 2025: Record revenue $1.39 billion. Fourth Quarter 2025: Total segment sales $59.7 million (up 97%), segment adjusted EBITDA $8.4 million (up over 3x). Driven by recovery in Peruvian avocado orchard yields, sales of owned production >3x prior year. Blueberries: net sales up 16% to $36.5 million, segment adjusted EBITDA down to $4.7 million due to lower per unit margins.

Mango

• Market share grew to 5.2%, up ~150bps, household penetration approaching 40% (up from 35% 3 years ago).

• 2026 Outlook: Avocado industry volumes expected up ~10% (Mexican crop larger), avocado prices lower ~25%. Blueberries: volume increases from new acreage, revenue up, but profitability weighed by lower yields. CapEx expected $40M, step down from heavy cycle.
• Mango: Glide path similar to prior years, focus on market share penetration, global sourcing, cross-selling with avocados.

• Pricing Volatility: Industry pricing fluctuations can impact margins.
• Supply Disruptions: Weather, crop conditions, or other factors can disrupt supply.
• Tariff Uncertainty: Trade tariffs can affect international operations and costs.

Q: Curious about outlook for mangoes A: John Pawlowski said glide path similar to prior years, focus on market share penetration, global sourcing, cross-selling with avocados Q: Biggest risk in accomplishing free cash flow growth A: Bryan Giles said strong operating performance driving cash flow, CapEx $40M allows growth CapEx, flexibility in capital allocation Q: How should we think about use of cash going forward A: Bryan Giles said priority is growth, looking at potential opportunities, including organic and inorganic, and share buybacks possible Q: Should we look for changes in strategy with management transition A: John Pawlowski said focused on commercial growth over 5-10 years, considering organic and inorganic opportunities Q: How much of $40M CapEx for next year could be growth CapEx A: Bryan Giles said ~$20M growth CapEx, ~$20M maintenance Q: Most upside from growing into footprint, specific regions A: John Pawlowski mentioned US market white space, deeper European penetration, Guatemalan fruit impact Q: Time to reach household penetration goals A: John Pawlowski said 2-3 year goal to reach 73-75% household penetration, leveraging fruit availability and promotions