Nov 26, 2025 7:30 AM Eastern Standard Time Fresh Del Monte Produce Inc. and THACO AGRI Sign Strategic Sourcing Partnership for Bananas Share New partnership strengthens Fresh Del Monte's sourcing diversification strategy and expands banana production ties in Vietnam, Cambodia and Laos HO CHI MINH CITY, Vietnam--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. (NYSE: FDP), one of the world's leading vertically integrated producers, marketers, and distributors of high-quality fresh fruit and vegetables, today an ...

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $1.022 billion, reflecting an increase driven by higher net sales in the banana and other product services segments, primarily due to higher per unit selling prices in the banana segment [12][13] - Adjusted net sales were $960 million, with gross profit at $81 million, leading to a gross margin decrease to 7.9% [13][15] - The company reported an operating loss of $22 million, while adjusted operating income was $40 million [15] - Net loss attributable to the company was $29 million, with adjusted net income at $33 million, resulting in a diluted earnings per share loss of $0.61 and adjusted earnings per share income of $0.69 [15] Business Line Data and Key Metrics Changes - Fresh and value-added product segment net sales were $611 million, with a gross profit of $68 million and a gross margin increase to 11.2% [16] - Banana segment net sales were $358 million, with a gross profit of $5 million and a gross margin decrease to 1.3% [17] - Other products and services segment net sales were $53 million, with a gross profit of $8 million and a gross margin decrease to 14.8% [18] Market Data and Key Metrics Changes - The banana industry faced a 22% year-over-year production decline, equating to approximately 18 million boxes lost, primarily due to Black Sigatoka disease [8][9] - In Costa Rica, production has significantly declined, impacting costs across the industry [8][9] Company Strategy and Development Direction - The company is shifting towards higher margin value-added categories, divesting Mann Packing to enhance overall margin profile and capital efficiency [4][10] - The focus remains on margin discipline over volume in the banana segment, prioritizing product quality and reliability [22][57] Management Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by diseases affecting banana production, particularly Fusarium wilt TR4 and Black Sigatoka, which are increasing costs and impacting supply [5][50] - The company expects net sales growth of approximately 2% year-over-year and anticipates margin recovery supported by the Mann Packing divestiture [20][24] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, with an annualized yield of 3.4% based on the current share price [19] - Capital expenditures for the first nine months of 2025 totaled $36 million, with investments focused on enhancing operations in Central America and North America [19] Q&A Session Summary Question: Is the adjusted gross margin of 13.9% the new normal for the fresh and value-added segment? - Management expressed confidence that the segment could consistently approach the 13% margin, while remaining cautious with guidance of 11% to 13% [28] Question: Are costs for pineapples increasing similarly to bananas? - Management indicated that while there are inflation-adjusted cost increases, pineapples are not facing the same disease pressures as bananas, and margins are expected to remain strong [30] Question: What is the outlook for avocado pricing? - Management noted that avocado prices could firm up in the next few months but do not expect a long-term escalation in prices [36][37] Question: Why is banana consumption down in North America? - Management attributed the decline to seasonal factors, suggesting that consumption will stabilize despite rising costs [48] Question: Will the new banana producers' organization lead to more rational pricing? - Management clarified that the organization aims to improve understanding and practices rather than directly influence pricing [52]

Core Insights - YIKEDA, a high-end fruit tomato brand, showcased its products at the 18th Asia Fruit Logistica, highlighting its strong capabilities and global confidence [1][3] - The brand is under Triumph Haofeng Agriculture Group Co., Ltd. and focuses on cherry tomatoes, 100% NFC tomato juice, and other tomato-based products, achieving significant sales recognition [3][5] Product Highlights - YIKEDA's cherry tomatoes and 100% NFC tomato juice received considerable attention, with the tomatoes being produced in a smart glass greenhouse, ensuring non-GMO and high-quality standards [5][6] - The 100% NFC tomato juice is made without added water, using only tomatoes, which has led to positive feedback and numerous inquiries from potential buyers [5][6] Global Expansion Strategy - YIKEDA has begun its global expansion, with products entering markets in Russia, South Korea, and various supermarkets in Hong Kong, China [6][7] - The brand aims to expand both its product offerings and brand presence globally, actively addressing market admission criteria and logistical challenges [6][7] Future Collaborations - Following the exhibition, YIKEDA has received strong cooperation intentions from clients in Belarus, Malaysia, Thailand, and other regions, indicating a growing interest in its premium products [7]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $1.098 billion, down from $1.108 billion in the prior year, primarily due to lower sales in the banana segment and negative exchange rate fluctuations, partially offset by higher sales in fresh and value-added products [15] - Gross profit increased to $92 million from $82 million year-over-year, driven by higher sales in fresh and value-added segments, despite increased production and distribution costs [15] - Gross margin improved to 8.4% from 7.4% in the prior year and 6.8% in Q4 2024 [16] - Net income attributable to Fresh Del Monte was $31 million, up from $26 million in the prior year, with adjusted net income at $30 million compared to $16 million last year [17] Business Line Data and Key Metrics Changes - Fresh and value-added products segment net sales were $683 million, slightly up from $677 million, driven by higher avocado prices and fresh cut fruit sales in North America [19] - Banana segment net sales decreased to $364 million from $380 million, impacted by lower sales volume and prices in Asia and North America due to market demand and supply issues [21] - Other products and services segment net sales remained stable at $51 million, with gross profit increasing to $6 million from $5 million due to higher poultry and meat prices [22] Market Data and Key Metrics Changes - Strong consumer interest in avocados and fresh cut fruit continues, with the avocado segment expected to grow as sourcing diversifies from Peru and Colombia [39] - Pineapple demand exceeds supply, attributed to increasing consumption and favorable pricing compared to other fruits [44] Company Strategy and Development Direction - The company aims to lead in fresh and value-added products, focusing on quality, innovation, and sustainability, with a vision extending through 2025 to 2027 [12] - Strategic acquisition of a majority stake in Abolio, an avocado oil producer, aims to reduce waste and enhance value in a high-margin category [11] - The company is committed to operational excellence, resource efficiency, and global expansion while reducing reliance on any single market [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued solid demand for fresh produce despite consumer pressures, indicating resilience in the face of logistical disruptions [33] - The company is closely monitoring tariff impacts and working collaboratively with buyers to mitigate costs without negatively affecting consumers [37] - Expectations for full-year 2025 include a 2% growth in net sales and gross margins of 10-11% in fresh and value-added products, 5-7% in bananas, and 12-14% in other products [27][29] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing a 3.5% yield based on current share price [25] - Long-term debt decreased to $233 million, a 5% reduction from the previous fiscal year-end [25] Q&A Session Summary Question: Demand in the produce category - Management noted solid demand in fresh produce, with no expected reductions in consumption, viewing market disruptions as potential opportunities [33] Question: Logistic issues in the industry - Management confirmed that smaller operators face challenges due to logistics disruptions, while the company’s integrated supply chain allows for uninterrupted operations [34][36] Question: Impact of tariffs on pricing - The company is working with buyers to mitigate tariff impacts cooperatively, aiming to avoid negative effects on consumer prices [37] Question: Performance of avocado segment - The avocado segment is performing well, with growth expected as sourcing diversifies [39] Question: Fresh cut fruit margins - Management expressed confidence in maintaining strong margins in fresh cut fruit operations due to increased efficiency and demand [42] Question: Pineapple supply and demand - Management indicated that increasing consumption is driving demand for pineapples, which are still competitively priced compared to other fruits [44]