By Katherine Hamilton

Mission Produce increased its first-quarter profit and beat revenue expectations as it plans to focus its sourcing outside of Mexico ahead of tariffs.

The avocado producer posted a profit of $3.9 million, or 5 cents a share, in the three months ended Jan. 31, while it broke even the year before.

Stripping out certain one-time items, adjusted per-share earnings were 10 cents, ahead of the 1 cent forecast by analysts, according to FactSet.

Revenue rose 29% to $334.2 million. Analysts surveyed by FactSet forecast revenue of $285.6 million.

Mission Chief Executive Steve Barnard said the company plans to focus on leveraging its sourcing markets in California and Peru to mitigate potential tariffs.

Avocados are primarily grown in Mexico, making them a target of the proposed 25% tariffs on imports from the country to the U.S. The tariffs are set to be implemented April 1, after they were pushed back for USMCA-compliant products, which includes avocados.

Mission was able to deliver volume growth despite challenges in getting the supply from Mexico needed to meet customer commitments Barnard said. Avocado margins were lower per-unit due to higher fruit costs and pricing increased, but there was still growth in marketing and distribution, he said.

Mission has been diversifying into blueberries, which grew in volume sold by 70% and contributed to overall growth, Barnard said.

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

(END) Dow Jones Newswires

March 10, 2025 16:33 ET (20:33 GMT)

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