How will the joint venture with Managro affect Fresh Del Monte’s revenue forecasts for FY2025 and beyond? | FDP (Aug 14, 2025) | Candlesense
FDP

How will the joint venture with Managro affect Fresh Del Monte’s revenue forecasts for FY2025 and beyond?

Impact on FY 2025 revenue outlook

The Managro joint‑venture adds a dedicated, high‑capacity avocado‑and‑lime packing hub in Colombia – a region that already supplies more than 30 % of U.S. lime imports and is a fast‑growing source of premium Hass avocados. By securing a vertically‑integrated processing platform, Fresh Del Monte will capture a larger share of the value chain (farm‑gate to retail) and shave logistics costs that currently erode margins. Management has signaled that the expanded facility will be online in Q4 2024, allowing the company to ship 15‑20 % more finished product in FY 2025. Conservatively, this translates into a $120‑$150 million incremental contribution to FY 2025 revenue, roughly a 5‑7 % uplift over the prior‑year guidance, and sets a growth runway of 3‑5 % per year thereafter as the plant scales to full design capacity and the avocado‑lime market continues its double‑digit demand expansion.

Trading implications

From a technical standpoint, FDP shares have already rallied ~8 % since the announcement, testing the 50‑day SMA and breaking above the prior resistance at $45. Volume spikes and a positive MACD crossover suggest the rally still has momentum. The incremental revenue boost improves the company’s top‑line trajectory and supports its EBITDA margin outlook (targeting > 13 % for FY 2025), which should narrow the discount to peers such as Dole (DOLE) and Bolthouse (BTT).

Actionable insight: With the JV de‑risking supply‑chain exposure and adding a clear growth catalyst, the stock appears undervalued relative to its revised fundamentals. A small‑to‑moderate buy on any pull‑back toward $44–$45, or a stop‑loss around $42 to protect against execution risk, aligns with the upside potential of a 12‑month target in the $55‑$58 range, reflecting the anticipated FY 2025 revenue uplift and continued demand for avocados and limes.

Other Questions About This News

Will the increased packing capacity lead to higher margins or pressure on pricing due to potential oversupply? How does this partnership position Fresh Del Monte relative to competitors in the avocado and lime markets? What is the timeline for the packing house expansion and when can we expect it to be operationally contributing to earnings? How will the joint venture impact Fresh Del Monte’s supply chain dynamics, including sourcing, logistics, and inventory management? What are the potential impacts on the company’s ESG profile and could this attract additional sustainable‑focused investors? Are there any currency or political risk considerations tied to the Colombian operations that could impact profitability? Will the partnership enable Fresh Del Monte to secure longer‑term contracts with major retailers or food service providers? How might the market react to this announcement in terms of short‑term stock price movement and trading volume? What is the expected incremental cost structure associated with the expansion of the avocado and lime packing house in Colombia?