Mission Produce posts record Q2 revenue despite margin pressure

USA – Mission Produce has reported record revenue for the second quarter of its 2025 fiscal year, fueled by strong avocado pricing even as margins narrowed due to higher fruit costs.

The California-based company posted total revenue of $380.3 million, a 28 percent increase from the same period last year.

The growth came mainly from its Marketing and Distribution segment, where average avocado prices rose by 26 percent. Sales volumes, however, remained flat as limited supply from Mexico kept product availability tight.

“Consumer demand outpaced supply in Q2,” the company noted in its earnings release. “This pushed up per-unit pricing, even though volume was limited by continuing constraints on Mexican fruit availability.”

Despite the sharp rise in revenue, net income for the quarter fell to US$3.1 million from US$7 million the previous year. Adjusted net income also dropped slightly to US$8.7 million from US$9.8 million. Adjusted EBITDA for the period came in at US$19.1 million, down 5 percent year-over-year.

Steve Barnard, CEO of Mission Produce, said the company’s teams remained steady through seasonal and supply challenges.

“We delivered record second quarter revenue and stronger than expected adjusted EBITDA performance,” Barnard said. “Our commercial teams successfully navigated typical seasonal supply challenges by leveraging our industry-leading global source network to satisfy customer commitments.”

He added that while market prices remained high, the fact that volumes stayed steady pointed to a stable retail demand for avocados.

“Distributed volumes were flat with the prior year period, which speaks to the durability of consumption and the growing consistency of the category at retail,” Barnard said.

Barnard also highlighted strong progress in the company’s strategic focus areas. Mission’s mango business reached record volumes and secured notable market share gains in the US.

“Our mango business gained significant market share and achieved record volumes, establishing Mission as a leading US distributor,” he said.

Meanwhile, its UK operations continued to gain pace. “Our operations in the United Kingdom are steadily gaining momentum through enhanced customer penetration which has optimised facility utilisation following the strategic investment in the region,” Barnard noted.

Outlook for the second half

Mission expects a solid performance in the second half of the year, supported by stronger Peruvian supply as Mexican availability remains uncertain.

“Looking ahead to the second half of the year, we are well-positioned to generate solid cash flow as we typically do through leveraging our own increased Peruvian supply to meet strong market demand,” Barnard said.

With a solid balance sheet, the company also plans to assess share repurchases while balancing other key priorities.

Earlier in the year, Mission reported a strong Q1, with a 29 percent rise in revenue to US$334.2 million. Net income climbed to US$3.9 million, reversing a break-even result from the prior year. While the company’s Blueberries segment recorded a 70 percent jump in volumes sold, prices fell by 33 percent due to more stable supply levels.

Even with strong pricing, adjusted EBITDA fell by 8 percent to US$17.7 million in Q1, driven by thinner per-unit margins on avocado sales. Mission continues to rely on its sourcing operations in California and Peru as it works through the ongoing supply challenges in Mexico.

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