Mission Produce Inc
NASDAQ:AVO
Mission Produce Inc
Mission Produce, Inc. engages in sourcing, producing and distributing avocados. The company is headquartered in Oxnard, California and currently employs 2,800 full-time employees. The company went IPO on 2020-09-30. The firm procures avocados principally from California, Mexico and Peru. The company operates through two operating segments: Marketing and Distribution and International Farming. The Marketing and Distribution segment sources fruit from growers and then distributes the fruit through its global distribution network. Its International Farming segment owns and operates orchards from which all fruit produced is sold to its Marketing and Distribution segment. The International Farming segment's farming activities range from cultivating early-stage plantings to harvesting from mature trees, and it also earns service revenues for packing and processing for producers of other crops during the avocado off-harvest season. Its International Farming segment is principally located in Peru, with smaller operations in other areas of Latin America.
Mission Produce, Inc. engages in sourcing, producing and distributing avocados. The company is headquartered in Oxnard, California and currently employs 2,800 full-time employees. The company went IPO on 2020-09-30. The firm procures avocados principally from California, Mexico and Peru. The company operates through two operating segments: Marketing and Distribution and International Farming. The Marketing and Distribution segment sources fruit from growers and then distributes the fruit through its global distribution network. Its International Farming segment owns and operates orchards from which all fruit produced is sold to its Marketing and Distribution segment. The International Farming segment's farming activities range from cultivating early-stage plantings to harvesting from mature trees, and it also earns service revenues for packing and processing for producers of other crops during the avocado off-harvest season. Its International Farming segment is principally located in Peru, with smaller operations in other areas of Latin America.
Leadership Transition: Mission Produce announced that John Pawlowski will become CEO in April, with current CEO Steve Barnard moving to Executive Chairman.
Record Financials: Fiscal 2025 saw record revenue of $1.39 billion (up 13%), record adjusted EBITDA in Q4, and over $180 million in operating cash flow over the past two years.
Volume Growth: Avocado volumes grew 7% for the year and 13% in Q4, with significant gains in Europe and Asia.
Margin Expansion: Q4 gross margin rose 180 basis points to 17.5%, driven by lower avocado prices and higher volumes.
International Strength: European revenue grew over 60%, European avocado volumes rose 40%, and Peruvian orchards more than doubled exportable production to 105 million pounds.
CapEx Outlook: Capital expenditures are stepping down, with FY 2026 CapEx expected at $40 million, supporting higher free cash flow.
Guidance: For Q1 FY26, avocado industry volumes are expected up 10% YoY, with prices down about 25% YoY. Margin compression is anticipated due to seasonality.
