Mission Produce Inc (NASDAQ:AVO) stock rose 6.64% (As on September 9, 11:16:10 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the third quarter of FY 25. Adjusted net income of $18.2 million compared to $16.7 million for the same period last year. Adjusted EBITDA increased 3% to $32.6 million, compared to $31.5 million in the same period last year. Growth of adjusted net income was driven by an increase in operating income, as well as a $0.8 million reduction in interest expense on lower rates and outstanding borrowings and a $0.3 million increase in equity method income that is primarily comprised of earnings from its investments in Henry Avocado Corporation. Cash and cash equivalents were $43.7 million as of July 31, 2025, compared to $58.0 million as of October 31, 2024. Net cash provided by operating activities was $21.4 million for the nine months ended July 31, 2025, as compared to cash provided by operating activities of $55.4 million for the same period last year.
Further, gross profit increased $8.1 million or 22% in the third quarter of fiscal 2025 to $45.1 million, while gross profit percentage increased 120 basis points compared to the same period last year, to 12.6% of revenue. The increase was driven by the International Farming segment where avocado production was significantly higher due to increased yields at the farms. Net sales in the Marketing & Distribution segment increased $22.8 million or 7% to $344.1 million for the third quarter. Total sales in the International Farming segment for the third quarter increased $21.6 million or 79% to $49.0 million, compared to $27.4 million for the same period last year and segment adjusted EBITDA increased $7.5 million or 163% to $12.1 million compared to $4.6 million for the same period last year. Net sales in the Blueberries segment increased $2.9 million or 181% to $4.5 million for the third quarter, compared to $1.6 million for the same period last year.
AVO in the third quarter of FY 25 has reported the adjusted earnings per share of 26 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the adjusted revenue growth of 10 percent to $357.7 million in the third quarter of FY 25, beating the analysts’ estimates for revenue of $323.61 million. Mission Produce said the increase in revenue was primarily driven by the Marketing & Distribution segment, where avocado volume sold increased 10%, partially offset by a decrease in average per-unit avocado sales prices of 5%. Volume and price movements resulted from higher Peruvian avocado production driven by more favorable weather conditions in the current year and greater availability of Mexican fruit due to harvest disruptions in the previous year.
Avocado industry volumes are expected to be approximately 15% higher in the fiscal 2025 fourth quarter versus the prior year period. Pricing is expected to be lower on a year-over-year basis by approximately 20-25% as compared to the $1.90 per pound average experienced in fourth quarter of fiscal 2024. For fiscal 2025, total capital expenditures are expected to remain in the range of $50 to $55 million.