By Katherine Hamilton

Mission Produce shares rose after the company said the worst of its tariff struggles appear to be in the past.

The stock advanced 4% to $10.90 in postmarket trading Thursday. Shares are still down 27% this year after taking a sharp fall amid tariff turmoil in March.

The avocado producer posted a profit of $3.1 million, or 4 cents a share, in the fiscal second quarter, compared with $7 million, or 10 cents a share, the year before.

Stripping out one-time items, adjusted earnings per share were 12 cents. Revenue increased 28% to $380.3 million.

March was a month of chaos for the company, but uncertainty has subsided, management said during a call with analysts. Mission recorded a $1.1 million cost from tariffs during the three days in March when taxes were levied on USMCA-compliant Mexican imports. At that time, suppliers were extremely skittish because of uncertainty, Chief Executive Scott Barnard said.

"You had moments in time where people were holding fruit back, not letting it cross, waiting for decisions to occur, sometimes doing things for 24 to 48 hours," he said.

By April, the supply chain calmed as growers settled into the 10% tariff level, Barnard said. Prices also peaked in March, and he expects to increase volume in the second half of the year to keep consumer prices moderate.

"Knock on wood, it's been smooth sailing since then," he said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

June 05, 2025 19:13 ET (23:13 GMT)

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