The Southeast Produce Council released its  “What’s New 2025” report and it reveals how produce shippers are driving recovery for cold chain highway transportation. As the trucking industry hopes to emerge from what many call an extended and difficult downturn, one segment offers particular promise for recovery: cold chain refrigerated transportation. The produce industry, valued at $48 billion in retail sales, is undergoing a generational transformation that could reshape cold chain logistics for years to ...

VANCOUVER, British Columbia, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Village Farms International, Inc. ("Village Farms" or the "Company") (NASDAQ: VFF) today reported financial results for its second quarter ended June 30, 2025. All figures are in U.S. dollars unless otherwise indicated. The Company's second quarter 2025 results reflect the May 30, 2025 closing of its previously-announced, transformative transaction to privatize certain assets and operations of its Produce segment through the formation of a new e ...

Financial Data and Key Metrics Changes - Net sales increased by 4% to $1.183 billion compared to $1.14 billion in the prior year [14] - Gross profit rose by 6% to $120 million from $113 million in the prior year, with gross margin expanding to 10.2% from 9.9% [6][15] - Net income attributable to Fresh Del Monte was $57 million, up from $54 million in the prior year, with adjusted diluted earnings per share increasing to $1.23 from $1.16 [18] Business Segment Data and Key Metrics Changes - Fresh and value-added products segment net sales increased by 4% to $723 million, driven by higher selling prices in the pineapple product line [19] - Banana segment net sales also rose by 4% to $410 million, primarily due to higher selling prices across regions [21] - Other products and services segment saw a slight decrease in net sales to $50 million from $51 million, attributed to lower selling prices in poultry and meats [22] Market Data and Key Metrics Changes - Consumer spending on tropical fruit has risen by 58% since February 2017, indicating a growing market relevance [8] - The company launched PingGlow in the UAE, marking its first sustained market entry for a variety in the Middle East [8] Company Strategy and Development Direction - The company is transitioning from legacy break box shipping vessels to container vessels in the Asia Pacific region to enhance operational efficiency [27] - There is a focus on expanding production capacity in Costa Rica and other regions, including Brazil and Africa, to meet growing demand [36][38] Management Comments on Operating Environment and Future Outlook - Management anticipates a continued shortage of pineapple supply into 2026, with strong market dynamics expected to persist [35][36] - The company remains confident in its ability to deliver on full-year objectives, expecting net sales growth of 2% year-over-year [28] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, equating to an annualized yield of 3.3% based on current share price [26] - The effective tax rate for the second quarter was 20%, reflecting increased earnings in higher tax jurisdictions [23] Q&A Session Summary Question: Update on pineapple supply and growth expectations - Management expects a continued shortage of supply through the end of the year and into next year, with strong market conditions for premium varieties [35][36] Question: Distribution growth for Pink Glow - Supply is currently constrained due to regulatory issues, but management anticipates increased acreage and supply in about 18 months [40][41] Question: Demand sources for fresh cut fruit - Demand is primarily coming from retail and convenience stores, with growth observed globally, not just in North America [45][46] Question: Impact of black sigatoka on banana supply - Costa Rica's export volume is down over 20% due to black sigatoka disease, which is expected to worsen [52] Question: Foreign exchange impact on revenue - The strengthening of the euro, British pound, and Japanese yen positively impacted net sales, while the Costa Rican colon presented headwinds [62][65]

Core Insights - Mission Produce's expansion into Europe is part of a global strategy focused on diversification and operational efficiency, aiming to reduce reliance on North America and ensure year-round supply [1][7] - The company reported strong first-quarter 2025 results, achieving record revenues and growth in core categories like avocados and blueberries, indicating its capacity to support geographic expansion [2][7] - The European market presents logistical challenges and competitive pressures, with established players and varying consumer preferences, which could complicate Mission Produce's strategy [3][4][5] Financial Performance - Mission Produce's shares increased by 19.5% over the last three months, while the industry saw a growth of 30.1% [6] - The company trades at a forward price-to-earnings ratio of 23.59X, significantly higher than the industry average of 16.71X, indicating a premium valuation [8] - The Zacks Consensus Estimate predicts a year-over-year earnings decline of 20.3% for both fiscal 2025 and 2026, with estimates remaining unchanged over the past week [9][10]

Core Viewpoint - Mission Produce Inc. (AVO) is expected to report declines in both sales and earnings for the second quarter of fiscal 2025, with sales estimated at $282.1 million, reflecting a 5.2% decrease year-over-year, and earnings projected at 3 cents per share, indicating a 78.6% decline from the previous year [1][2]. Financial Performance - The company has shown a consistent earnings surprise trend, with a notable 900% surprise in the last reported quarter, raising questions about its ability to maintain this momentum [2]. - The Earnings ESP for AVO is 0.00%, and it holds a Zacks Rank of 3, suggesting that the model does not predict an earnings beat this season [3]. Market Trends and Growth Drivers - Mission Produce is expected to sustain growth momentum due to resilient global demand, strategic diversification, and operational agility, supported by increasing avocado consumption driven by health trends [4][8]. - The avocado industry is projected to see a 5% year-over-year increase in average pricing in the second quarter, despite supply challenges from Mexico, which are expected to be offset by increased production in California and Peru [6][8]. Segment Performance - The Blueberry segment is anticipated to perform strongly, with harvest volumes expected to rise by 35-40% due to expanded acreage and improved yields, while prices are expected to remain stable compared to the previous year [7][8]. Strategic Initiatives - Ongoing investments in vertical integration, digital innovation, and geographic diversification are expected to enhance operational efficiency and asset utilization, helping the company navigate supply volatility and tariff challenges [8][17]. - The company’s global sourcing strategy, including operations in Mexico, Peru, Colombia, and Guatemala, positions it well to absorb geopolitical shocks and maintain long-term growth potential [16][17]. Stock Performance and Valuation - AVO's stock has declined by 9.4% over the past three months, underperforming the industry and broader market indices [10][14]. - The current stock price of $11.18 reflects a 17.2% premium over its 52-week low but is 26.7% below its 52-week high, with a forward P/E multiple of 27.78X, indicating a premium valuation compared to industry averages [14][15]. Long-term Outlook - Despite near-term challenges such as inflation and tariff uncertainties, the long-term growth narrative for Mission Produce remains strong, supported by its diversified sourcing and expanding product portfolio [18][19]. - The company is focused on delivering disciplined, profitable growth through improved asset utilization and strategic execution, aligning with enduring consumer demand trends [19].

Core Insights - The transaction has established Vanguard Food LP as a new leader in the North American produce industry, backed by private investment firms [1][2] - The joint venture aims to leverage its expertise in cultivation, sales, and distribution to create a premier branded CPG foods company focused on healthy lifestyles and sustainable practices [2][4] Company Overview - Vanguard Food LP is a joint venture between Kennedy Lewis Investment Management, Sweat Equities, and Village Farms International, operating 80 acres of advanced greenhouse facilities in Texas and sourcing from an additional 385 acres [4] - The company plans to pursue a roll-up strategy to acquire other produce assets and expand its product offerings through mergers and acquisitions [2][4] Strategic Vision - The leadership of Vanguard believes there is a significant opportunity to meet the growing consumer demand for healthier food alternatives, positioning the company for future growth [3] - The partnership is expected to enhance resources for innovation and value creation for customers, marking a new era for Village Farms' legacy produce business [3][4] Investment Management Background - Kennedy Lewis Investment Management manages over $28 billion across various private funds and investment vehicles, indicating strong financial backing for Vanguard [5] - Sweat Equities focuses on health and wellness investments, with approximately $100 million in invested capital across multiple funds, emphasizing its commitment to the food and beverage sector [6][7]

Core Insights - The company estimates a more than 25% year-over-year increase in preliminary herb sales during the Easter holiday period [1] - Strong performance was recorded across core herb categories, with the Poultry Mix playing a significant role in growth [2] - The CEO emphasized the alignment with evolving consumer preferences for fresh, organic, and sustainable ingredients [3] Sales Performance - Hydroponic herbs increased an estimated 31%, driven by promotional support and expanded retailer placement [5] - Cut herbs rose an estimated 22%, reflecting consistent consumer preference for fresh, high-integrity ingredients [5] - Potted herbs grew an estimated 18%, supported by targeted merchandising and the availability of the Poultry Mix [5] Company Overview - Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA) and operates over 5,000 retail locations [4] - The company utilizes patented technologies such as GreenThumb software and Self-Watering displays to enhance product quality and sustainability [4] - Edible Garden is recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative [4]