[Management View]
Mission Produce reported record revenue of $380.3 million in Q2 FY2025, a 28% increase driven by higher avocado selling prices. Key strategic priorities include expanding market access, leveraging global sourcing networks, and enhancing distribution capabilities in Europe and the U.S. mango market.

[Outlook]
The company expects to offset earlier operational challenges and return to historical levels of cash generation in the second half of FY2025. Peruvian avocado production is projected at 100-110 million pounds for the 2025 season, up from 43 million pounds last season. Expansion in blueberry acreage is also expected to drive incremental growth.

[Financial Performance]
- Revenue: $380.3 million, up 28% YoY
- Gross Profit: $28.4 million, down from $31 million YoY
- Gross Profit Margin: 7.5%, down 290 basis points
- Adjusted Net Income: $8.7 million, down from $9.8 million YoY
- Adjusted EBITDA: $19.1 million, down from $20.2 million YoY

[Q&A Highlights]
Question 1: Can you elaborate on the outlook for the International Farming segment, particularly regarding fruit quality and sizing?
Answer: Fruit quality is expected to be good, with sizing generally favorable. The Peruvian fruit quality continues to improve as trees mature, and the company is well-positioned to manage any size variations through effective forecasting and planning.

Question 2: What was the relative level of co-packer volume in Q2, and how did it evolve throughout the quarter?
Answer: Co-packer volume was normalized by leveraging other source markets like Peru and California. The company added capacity in its own packhouses to mitigate future constraints, and conditions improved significantly by mid-March.

Question 3: How did the tariff uncertainty impact supplier and customer behavior?
Answer: Initially, there was uncertainty with suppliers holding back fruit, but by April, most suppliers adapted to the new tariffs. The company maintained strong relationships to ensure product availability, and the impact on pricing is expected to be offset by increased supply.

Question 4: What is the current market share of the mango business, and how much can it grow within the current infrastructure?
Answer: The mango business has grown from below 5% to nearly 10% market share. The company is the second-largest mango distributor in the U.S. and expects continued growth through increased productivity from Peruvian farms and expanded grower relationships globally.

[Sentiment Analysis]
Analysts and management maintained a positive tone, highlighting confidence in the company's strategic initiatives and growth prospects. Management emphasized operational stability and strategic investments to drive future performance.

[Quarterly Comparison]
| Metric | Q2 FY2025 | Q2 FY2024 |
|-------------------------------|-----------------|-----------------|
| Revenue | $380.3 million | $297.0 million |
| Gross Profit | $28.4 million | $31.0 million |
| Gross Profit Margin | 7.5% | 10.4% |
| Adjusted Net Income | $8.7 million | $9.8 million |
| Adjusted EBITDA | $19.1 million | $20.2 million |

[Risks and Concerns]
- Tariff uncertainties and their potential impact on supply chain dynamics.
- Dependence on favorable weather conditions for crop yields.
- Fluctuations in avocado and mango market prices affecting profitability.

[Final Takeaway]
Mission Produce delivered record revenue in Q2 FY2025, driven by higher avocado prices and strategic market expansions. Despite challenges such as tariff uncertainties and lower gross margins, the company remains confident in its growth prospects, supported by strong operational execution and strategic investments in key markets. The outlook for the second half of FY2025 is positive, with expectations of normalized cash generation and increased production volumes.