Mission Produce's Crop Portfolio Expands: Is the Market Ripe for it?

Mission Produce, Inc. AVO is entering a pivotal phase of evolution, moving beyond its avocado legacy into a more diversified crop portfolio that now includes mangoes and blueberries. The company’s third-quarter fiscal 2025 results underscored the strength of this transformation, with record revenues of $357.7 million — up 10% year over year — driven by strong avocado volumes and the growing contribution of its new product lines. AVO’s vertically integrated model and global sourcing network are allowing it to weather market volatility while positioning the company for steady long-term growth. This strategic diversification signals the company’s ambition to become a broader leader in fresh produce, not just in avocados.

The expansion into mangoes and blueberries represents more than just category diversification — it’s a strategic hedge against the natural cyclicality of the avocado market. By leveraging its well-established global logistics and farming infrastructure, AVO is replicating its avocado “playbook” to accelerate growth in these adjacent categories. The blueberry segment, for instance, saw sales rise nearly threefold year over year to $4.5 million, supported by expanded acreage now surpassing 700 hectares. Meanwhile, the mango business continues to scale through strong partnerships with quality growers worldwide, allowing the company to offer a consistent supply and innovative packaging formats that appeal to retail customers. This approach enhances both stability and market penetration, setting the stage for new growth opportunities across North America, Europe and Asia.

Still, challenges remain. With avocado volumes expected to rise 15% in the fourth quarter, increased supply could pressure prices and margins. However, AVO’s investments in its U.K. facility and upgraded Mexican packhouses position it to compete through scale and consistency rather than price. As its diversification gains traction, the company appears poised for steady growth — provided it maintains disciplined execution.

AVO Faces Stiff Competition From CTVA & FDP

Corteva, Inc. CTVA and Fresh Del Monte Produce Inc. FDP are two key competitors in the fresh produce industry, each leveraging distinct strategic advantages.

Corteva continues to strengthen its position as a global agricultural leader by combining advanced seed technology with sustainable crop protection solutions. In recent quarters, the company has focused on expanding its biologicals portfolio and digital agriculture tools to help farmers boost productivity amid volatile weather and regulatory pressures. Corteva’s strategic cost discipline and innovation pipeline, including next-generation seed traits and eco-friendly crop protection products, are helping offset input inflation and softer commodity prices. With a balanced mix of R&D investment and operational efficiency, Corteva is aligning its growth trajectory with the rising global demand for sustainable and resilient food systems.

Fresh Del Monte is navigating a complex produce market by focusing on value-added products, operational efficiency and sustainability-driven growth. The company has been leveraging automation, renewable energy investments and strategic partnerships to enhance profitability across its fresh and prepared segments. Strong performance in its fresh-cut fruit and convenience categories reflects growing consumer demand for healthy, ready-to-eat options. Despite ongoing cost and logistics challenges, Fresh Del Monte’s vertically integrated model and emphasis on innovation are supporting margin resilience and long-term competitiveness in the global fresh food supply chain.

AVO’s Price Performance, Valuation & Estimates

Shares of Mission Produce have gained 11.5% in the last six months compared with the industry’s growth of 3.1%.

From a valuation standpoint, AVO trades at a forward price-to-earnings ratio of 24.27X, significantly above the industry’s average of 13.2X.

The Zacks Consensus Estimate for AVO’s fiscal 2025 and 2026 earnings suggests a year-over-year decline of 9.4% and 28.3%, respectively. The estimates for fiscal 2025 and 2026 have been stable in the past 30 days.

AVO stock currently sports a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research