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Mission Produce Inc. (AVO+2.06%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing an increase in net sales to $334.2 million from $258.7 million in the same quarter the previous year. The increase is attributed to higher avocado prices and volumes.
Cost of sales for the quarter was $302.7 million, representing 91% of sales, compared to 89% in the same quarter of the previous year. The increase in cost ratio is due to challenges in obtaining Mexican supply.
The company reported a gross profit of $31.5 million for the quarter, compared to $28.7 million in the previous year, with the increase driven by higher blueberry packing service revenue.
Selling, general, and administrative expenses increased to $22.2 million from $20.7 million, primarily due to higher employee-related costs.
Net income for the quarter was $6.2 million, up from $2.0 million in the previous year. After noncontrolling interest, net income attributable to Mission Produce was $3.9 million.
Net cash used in operating activities was $1.2 million, compared to cash provided of $9.5 million in the previous year. The decrease is due to higher inventory and receivable balances.
Mission Produce had a working capital of $127.5 million as of January 31, 2025. The company continues to focus on optimizing its supply chain and managing working capital.
The filing also details various financial agreements, including a syndicated credit facility with Bank of America with a total borrowing capacity of $250 million.
Mission Produce is defending against several legal proceedings, including class action lawsuits alleging wage and labor law violations and a lawsuit alleging false advertising practices.
The company identified potential risks related to changes in U.S. trade policy, compliance with environmental laws, and climate change regulations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Mission Produce Inc. quarterly 10-Q report dated March 10, 2025. To report an error, please email earnings@qz.com.