OXNARD, Calif., May 05, 2025 (GLOBE NEWSWIRE) -- Mission Produce, Inc. (NASDAQ: AVO) (“Mission” or “the Company”), a world leader in sourcing, producing, and distributing fresh Hass avocados with additional offerings in mangos and blueberries, today announced the appointment of Michael Bryan Sims to its board of directors, effective May 5, 2025. Sims is appointed as an independent Class I director, serving on the audit committee, with a term expiring at the Company’s 2028 Annual Meeting of Stockholders. In ...

Core Insights - Mission Produce, Inc. has inaugurated a new packinghouse in Guatemala, enhancing its global sourcing network for avocados and marking a significant development in the country's avocado production capabilities [1][2][3] Company Developments - The new facility is set to launch in August 2025 and is designed with advanced quality assurance and food safety technologies to ensure high standards for avocado distribution [2][3] - Mission Produce has been vertically integrated in Guatemala since 2020, with plans to expand its planted area from 728 hectares to up to 1,000 hectares by 2026 [3] Industry Context - Guatemala is emerging as a key player in the global avocado market, with the potential to meet increasing global demand due to its optimal growing conditions and two annual harvests [2][3] - In 2024, avocado exports from Guatemala generated over Q120,761,773 (USD$15.5 million) and supported more than 6,000 jobs, highlighting the economic impact of the avocado sector [2]

Mission Produce, Inc. (AVO) has faced notable weakness recently, led by market concerns over potential supply-chain disruptions in Mexico, which the ongoing tariff uncertainties can exacerbate. Additionally, the company’s current forward 12-month price-to-earnings (P/E) multiple of 24.04X raises concerns about whether the stock's valuation is justified. This multiple is significantly higher than the Zacks Agriculture - Operations industry average of 12.62X, making the stock appear relatively expensive.The p ...

Core Viewpoint - Mission Produce Inc. (AVO) has experienced a significant decline in stock price, dropping as much as 20.5% due to market concerns over potential supply-chain disruptions in Mexico and ongoing tariff uncertainties [1][2][9] Group 1: Financial Performance - AVO's stock is currently priced at $9.82, reflecting a 2.9% premium to its 52-week low of $9.54, and a 35.6% discount from its 52-week high of $15.25 [6] - The Zacks Consensus Estimate for AVO's fiscal 2025 and 2026 EPS has increased by 19% and 9.3%, respectively, indicating positive sentiment among analysts [14] - For fiscal 2025, the consensus estimates imply year-over-year declines of 6.6% in sales and 32.4% in EPS, with further decreases projected for fiscal 2026 [15] Group 2: Market Dynamics - Concerns over volume projections and potential sourcing challenges have negatively impacted AVO's stock performance, particularly due to a projected decline in avocado volumes from Mexico [9][10] - The company anticipates increased avocado volumes from California and Peru to offset the decline from Mexico, although this transition may lead to supply inconsistencies [10] - In the Peruvian blueberry segment, a 35-40% increase in total harvest volume is expected, but pricing pressures have resulted in a 33% year-over-year decline in average per-unit selling prices [11][12] Group 3: Competitive Positioning - AVO's strengths lie in its robust global sourcing network and operational efficiency, which enable it to meet customer demand while optimizing margins [18][19] - The company's ongoing investments in Latin America, including Guatemalan operations, enhance its long-term competitive positioning against regional supply constraints [20] - Consumer trends favor long-term growth for avocados, driven by rising global demand due to health benefits and popularity in emerging markets [21][22] Group 4: Valuation and Investment Outlook - AVO is currently trading at a forward 12-month P/E multiple of 24.07X, which is above the industry average of 14.11X and the S&P 500's average of 21.18X, indicating high investor expectations for future performance [23] - Despite recent stock performance concerns, AVO's competitive edge and rising avocado prices suggest potential for long-term returns, making it an attractive entry point for investors [25][26]

Core Viewpoint - Mission Produce, Inc. (AVO) has experienced a significant downtrend with a 20.8% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for AVO is currently at 28.52, indicating that the stock is oversold and may soon experience a price reversal [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically signaling an oversold condition [2][3]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for AVO, resulting in a 23.5% increase in the consensus EPS estimate over the last 30 days [6]. - AVO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating a favorable outlook for a potential price rebound [7].

Financial Data and Key Metrics Changes - The company achieved record first quarter revenue of $334.2 million, a 29% increase compared to the same period last year [7][20] - Gross profit increased by $2.8 million to $31.5 million, although gross profit margin decreased by 170 basis points to 9.4% of revenue [20][21] - Adjusted net income for the quarter was $7.1 million or $0.10 per diluted share, compared to $6.7 million or $0.09 per diluted share last year [21] Business Line Data and Key Metrics Changes - The Marketing & Distribution segment net sales increased 32% to $295.8 million, driven by avocado pricing and volume dynamics [23] - The Blueberry segment saw a 12% increase in revenue to $36.4 million, with a 70% increase in blueberry volumes sold, partially offset by a 33% decrease in average per unit selling prices [25] - The International Farming segment's sales increased 59% to $9.2 million, with adjusted EBITDA improving to $1.8 million from negative $0.5 million year-over-year [24][25] Market Data and Key Metrics Changes - The company experienced industry supply challenges in Mexico, impacting avocado supply and necessitating increased procurement through co-packers and spot market purchases [8][11] - The company anticipates that industry volumes in the fiscal 2025 second quarter will be consistent with the prior year, with pricing expected to be higher by approximately 5% year-over-year [32] Company Strategy and Development Direction - The company is strategically diversifying its sourcing footprint to include key growing geographies such as Peru, Colombia, and Guatemala to ensure reliable year-round supply [13][14] - The company is expanding its Blueberry and Mango segments, investing in premium varietals and enhancing customer relationships to drive growth [10][11] - The company aims to enhance operational efficiency through the optimization of its distribution footprint and the closure of Canadian facilities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic operating environment and highlighted the resiliency of consumer demand for avocados despite inflation [7][8] - The company remains optimistic about long-term growth opportunities in Blueberries and is well-positioned to capitalize on shifting consumer preferences towards healthy snacking options [9][10] - Management acknowledged uncertainty surrounding tariff negotiations but emphasized the value of their global strategy to mitigate potential impacts [17] Other Important Information - Cash and cash equivalents were $40.1 million as of January 31, 2025, with cash used in operating activities amounting to $1.2 million for the first quarter [27][28] - Capital expenditures for the quarter were $14.8 million, attributed to avocado and blueberry farming-related investments [30] Q&A Session Summary Question: Can you elaborate on sourcing from co-packers in the current quarter? - Management indicated that sourcing from co-packers was higher than typical due to a slight decrease in the overall crop in Mexico, but they expect to secure more direct inventory soon [36][38][41] Question: What is the visibility on unwinding working capital build in the second quarter? - Management noted that working capital strains are normal in the first half of the fiscal year and typically unwind in the second half, with expectations for improvement as they transition to harvesting their own fruit [44][46][48] Question: Have you observed any changes in supplier behavior due to tariff discussions? - Management reported that there was more movement and conversation among suppliers leading up to the March announcement, but overall supply remained consistent and they were able to meet customer requirements [51][53]

Mission Produce, Inc. (NASDAQ:AVO) Q1 2025 Earnings Conference Call March 10, 2025 5:00 PM ET Company Participants Jeff Sonnek - Investor Relations, ICR Stephen Barnard - Chief Executive Officer Bryan Giles - Chief Financial Officer John Pawlowski - President and Chief Operating Officer Conference Call Participants Ben Klieve - Lake Street Capital Markets Gerry Sweeney - ROTH Capital Partners Operator Good afternoon, and welcome to the Mission Produce Fiscal First Quarter 2025 Conference Call. All participa ...

分组1 - Mission Produce, Inc. reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, and showing an increase from $0.09 per share a year ago, resulting in an earnings surprise of 900% [1] - The company achieved revenues of $334.2 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 18.93%, compared to $258.7 million in the same quarter last year [2] - Over the last four quarters, Mission Produce has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - Despite the strong earnings report, Mission Produce shares have declined approximately 16.8% since the beginning of the year, contrasting with the S&P 500's decline of 1.9% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.02 on revenues of $237 million, and $0.42 on $1.06 billion in revenues for the current fiscal year [7] - The Agriculture - Operations industry, to which Mission Produce belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Total revenue for Q1 fiscal 2025 increased by $75.5 million or 29% to $334.2 million compared to the same period last year, driven by a 25% increase in average per-unit avocado selling prices and a 5% increase in avocado volumes sold [4]. - Net income for Q1 fiscal 2025 was $3.9 million, or $0.05 per diluted share, compared to breakeven for the same period last year, attributed to lower interest rates and increased equity income [7]. - Adjusted net income for Q1 fiscal 2025 was $7.1 million, or $0.10 per diluted share, compared to $6.7 million, or $0.09 per diluted share, for the same period last year [8]. - Adjusted EBITDA for Q1 fiscal 2025 decreased by 8% to $17.7 million, compared to $19.2 million in the prior year, primarily due to lower per-unit gross margins on fruit sold [8]. - The company reported a net income of $6.2 million for Q1 2025, significantly higher than $2.0 million in Q1 2024 [43]. - Adjusted EBITDA for the three months ended January 31, 2025, was $17.7 million, down from $19.2 million in the same period of 2024, a decrease of 7.8% [43]. Sales and Revenue Growth - Marketing & Distribution segment net sales increased by $71.2 million or 32% to $295.8 million for Q1, driven by avocado pricing and volume dynamics [9]. - International Farming segment sales increased by $3.4 million or 59% to $9.2 million, primarily due to higher blueberry packing service revenue [11]. - Blueberries segment net sales increased by 12% to $36.4 million for Q1, driven by volume growth despite lower selling prices [13]. - Total segment sales increased to $341.4 million in Q1 2025 from $262.9 million in Q1 2024, marking a 30% growth year-over-year [48]. - Avocado sales reached $279.2 million in Q1 2025, up from $212.3 million in Q1 2024, reflecting a 31.5% increase [50]. - The average sales price per pound of avocados rose to $1.75 in Q1 2025, compared to $1.40 in Q1 2024, indicating a 25% increase [49]. Assets and Liabilities - Total current assets increased to $297.2 million as of January 31, 2025, from $279.0 million as of October 31, 2024 [29]. - Total assets reached $997.8 million as of January 31, 2025, compared to $971.5 million as of October 31, 2024 [29]. - Total liabilities increased to $414.9 million as of January 31, 2025, from $394.4 million as of October 31, 2024 [29]. - Cash and cash equivalents were $40.1 million as of January 31, 2025, down from $58.0 million as of October 31, 2024 [15]. - Cash and cash equivalents decreased to $40.1 million as of January 31, 2025, from $58.0 million as of October 31, 2024 [29]. - The company experienced an increase in accounts payable to $47.6 million as of January 31, 2025, compared to $35.3 million as of October 31, 2024 [29]. Future Outlook - For Q2 fiscal 2025, pricing is expected to be higher by approximately 5% compared to the $1.59 per pound average in Q2 fiscal 2024, indicating continued strength in demand [24]. - Total capital expenditures for fiscal 2025 are expected to remain in the range of $50 to $55 million [24]. - The company plans to continue focusing on market expansion and new product development to drive future growth [30]. Operational Cash Flow - The company reported a net cash used in operating activities of $1.2 million for the three months ended January 31, 2025, compared to net cash provided of $9.5 million in the same period of 2024 [33]. - International Farming adjusted EBITDA improved to $1.8 million in Q1 2025 from a loss of $0.5 million in Q1 2024 [43]. - Marketing and Distribution adjusted EBITDA decreased to $9.7 million in Q1 2025 from $11.0 million in Q1 2024, a decline of 11.8% [43].

Financial Performance - Net sales increased by $75.5 million or 29% to $334.2 million for the three months ended January 31, 2025, compared to $258.7 million in the same period last year, primarily driven by a 25% increase in average per-unit avocado sales prices and a 5% increase in avocado volume sold [82]. - Gross profit rose by $2.8 million or 10% to $31.5 million, with a gross profit margin of 9.4%, down from 11.1% in the prior year, impacted by lower per-unit margins on avocados due to supply challenges [88]. - Total net sales for the three months ended January 31, 2025, were $334.2 million, an increase of $75.5 million or 29% compared to $258.7 million in the same period last year [104]. - Net income for the three months ended January 31, 2025, was $6.2 million, up from $2.0 million in the same period last year, representing a 210% increase [113]. Segment Performance - The Marketing & Distribution segment generated net sales of $295.8 million, up from $224.6 million, while the Blueberries segment saw a revenue increase of $3.9 million or 12% [82]. - Marketing & Distribution segment net sales increased by $71.2 million or 32% to $295.8 million for the three months ended January 31, 2025, driven by avocado pricing and volume increases [106]. - International Farming segment adjusted EBITDA increased by $2.3 million or 460% to $2.3 million for the three months ended January 31, 2025, compared to a loss of $0.5 million in the same period last year [108]. - Blueberries segment net sales increased by $3.9 million or 12% to $36.4 million for the three months ended January 31, 2025, driven by blueberry volume and pricing dynamics [109]. Expenses and Income - Selling, general and administrative expenses increased by $1.5 million or 7% to $22.2 million, primarily due to higher employee-related costs [90]. - Interest expense decreased by $1.1 million or 33% to $2.2 million, attributed to lower average balances on the revolving line of credit and reduced interest rates [92]. - Equity method income increased by $0.4 million or 100% to $0.8 million, primarily due to improved margins on fruit sold at Mr. Avocado [94]. - Other income was $1.5 million, compared to an expense of $1.0 million in the prior year, driven by foreign currency transaction gains from a strengthening U.S. dollar [96]. - The provision for income taxes increased by $1.1 million or 52% to $3.2 million, reflecting higher income before taxes [100]. - The effective tax rate decreased to 34.0% from 51.2% in the prior year, influenced by book losses in certain jurisdictions [100]. Cash Flow and Capital Expenditures - Operating cash flows for the three months ended January 31, 2025, were negative at $1.2 million, compared to positive cash flows of $9.5 million in the same period last year, largely due to growth in working capital [113]. - Total purchases of property, plant, and equipment for the three months ended January 31, 2025, were $14.8 million, an increase from $9.9 million in the same period last year [114]. - For fiscal 2025, total capital expenditures are expected to be between $50 million to $55 million, including approximately $10 million carryover from fiscal 2024 [124]. - The capital expenditures will primarily focus on the International Farming and Blueberries segments, with significant investment in Guatemala for avocado orchard maintenance and packhouse construction [124]. Financial Position and Liabilities - As of January 31, 2025, cash and cash equivalents were $40.1 million, down from $58.0 million as of October 31, 2024 [121]. - The company maintained compliance with financial covenants, including a consolidated leverage ratio of not more than 3.5 to 1.00 as of January 31, 2025 [123]. - As of January 31, 2025, undiscounted cash liabilities related to leases were approximately $174.3 million, with $107.4 million allocated for long-term land leases in the International Farming and Blueberries segments [125]. - Remaining maturities on term loans as of January 31, 2025, were $118.2 million [126]. Accounting and Risk Disclosures - There have been no material changes to critical accounting estimates since the Annual Report on Form 10-K for the year ended October 31, 2024 [127]. - No material changes have occurred in the quantitative and qualitative disclosures about market risk since the Annual Report on Form 10-K for the year ended October 31, 2024 [128].