Food Retail

Krungsri Securities assesses that the government is likely to extend the measure increasing the credit limit on the state welfare card for another two months, in October through November. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, disclosed that after the government is likely to approve the Thai Chai Thai Plus measure, which is expected to be submitted for Cabinet approval on September 22, low-income earners under the state welfare card program must also be assisted, by topping up funds for purchasing consumer goods through Thong Fah shops, maintaining the increased limit at 1,000 baht per person per month, up from the normal level of 300 baht per person per month, continuing the original measure that raised the limit to this level from June through September. This is seen as positive for TNP, which is a shop that directly participates in the program, as well as for KK MOTHER, with revenue from the program accounting for 8-10% of total revenue, and it makes the outlook for the fourth quarter of 2026 more positive. Initially, SSSG for the fourth quarter of 2026 is estimated at around -2% year-on-year, and 2026 profit is estimated at 204 million baht, down 4% year-on-year. There is still upside risk of around 10% from better-than-expected SSSG, with 2026 SSSG estimated at +3% year-on-year against the assumption set at -3% year-on-year, where every 1% increase in SSSG affects 2026 profit by around 1.5%. In the short term, third-quarter 2026 profit is expected to grow the strongest at 15% year-on-year and 1% quarter-on-quarter to 55 million baht, from an expected SSSG of +13% year-on-year after benefiting from the measure for a full quarter, including the opening of eight new branches during the fourth quarter of 2025 through the third quarter of 2026, leading revenue to be expected to rise 23% year-on-year and 5% quarter-on-quarter. Although gross margin is expected to weaken from product mix, with essential goods carrying low margin, the stock is attractive on valuation, trading at a 2026 forecast PER of 11.2 times, below the sector average of 14 times, and it has a strong financial position as net cash. Recommend Buy with a 2027 target price of 3.88 baht, based on a PER of 14 times, close to the sector average.

Mother Marketing Public Company Limited, or MOTHER, a retail and wholesale consumer goods operator under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga and Surat Thani provinces, expects revenue in the fourth quarter of 2026 to grow steadily in line with its targets, driven by the year-end tourism high season. Managing Director Ekapong Chokchaiwittat said the Krabi Provincial Office of Tourism and Sports forecasts that more than 5.2 million tourists will visit in 2026, generating more than 100 billion baht in revenue, with at least 20 billion baht expected to circulate during the year-end high season in particular. This will significantly boost sales at each branch in tourism areas. Meanwhile, in late November, airlines from the Scandinavian countries are preparing to launch new direct routes to Krabi: Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, each operating two flights per week. Ekapong said this will provide additional support to stimulate the local economy and help MOTHER's revenue expand in line with its operational plans.

High Tide Inc. reported record fiscal third-quarter revenue of C$198.8 million on September 14, up 33% year over year, while operating income rose 133% to C$8.7 million for the quarter ended July 31, 2026. Despite that profit growth, net cash provided by operating activities slipped to C$10.1 million from C$10.7 million a year earlier, as working capital absorbed C$1.8 million compared with a C$2.4 million release a year earlier, an approximately C$4.2 million unfavorable swing. Operating cash flow before changes in non-cash working capital rose 44% to C$11.9 million, and for the first nine months operating cash flow reached C$20.4 million versus C$19.6 million a year earlier. The company opened four Canadian stores and acquired four more during the quarter, and its German medical-cannabis subsidiary Remexian generated C$38.2 million in revenue, up from C$31.6 million sequentially, distributing 10.2 tonnes, a 35% sequential increase. High Tide also reported C$7.0 million in company-defined non-IFRS free cash flow, down from C$7.7 million a year earlier, while quarterly same-store sales at Canna Cabana were flat.

Mother Marketing Public Company Limited, or MOTHER, which operates retail and wholesale consumer goods businesses under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga, and Surat Thani provinces, expects its fourth-quarter 2026 results to grow on the back of the year-end high season. Managing Director Ekapong Chokchaiwittat said the launch of new direct flight routes by Scandinavian airlines will provide an additional boost to the local economy. The Krabi Provincial Office of Tourism and Sports forecasts that more than 5.2 million tourists will visit Krabi in 2026, generating more than 100 billion baht in revenue, with the year-end high season alone expected to see at least 20 billion baht in circulation as part of that full-year figure. This is expected to significantly increase sales at each branch in tourist areas. Meanwhile, in late November, Finnair will launch a direct Helsinki-Krabi route and Scandinavian Airlines will launch a direct Copenhagen-Krabi route, operating two flights per week.

Mother Marketing Public Company Limited, or MOTHER, expects revenue in the fourth quarter of 2026 to continue growing in line with its target, driven by the year-end high-season tourism market and foreign visitors arriving in Krabi province. Ekapong Chokchaiwittan, Managing Director of MOTHER, disclosed that the Krabi Provincial Office of Tourism and Sports forecasts that in 2026 there will be more than 5.2 million tourists, generating more than 100 billion baht in revenue, with the year-end high season expected to see at least 20 billion baht in circulation, which will significantly boost sales at each of the company's branches in tourist areas. In addition, at the end of November, airlines from the Scandinavian countries are preparing to launch new direct routes into Krabi province, namely Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, operating two flights per week, reflecting Krabi Airport's readiness to handle international flights and providing further impetus to stimulate the local economy, supporting MOTHER's revenue growth in line with its operational plan.

Mother Marketing Public Company Limited, or MOTHER, a retailer and wholesaler of consumer goods under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga and Surat Thani provinces, expects sales in the fourth quarter of 2026 to continue growing. Managing Director Ekapong Chokchaiwittat said the main driver is the year-end high tourism season, as foreign visitors arrive in Krabi. The Krabi Provincial Office of Tourism and Sports forecasts that 2026 will see more than 5.2 million tourists, generating more than 100 billion baht in revenue, with the year-end high season alone expected to see at least 20 billion baht in circulation, significantly lifting sales at each branch in tourist areas. Meanwhile, in late November, airlines from the Nordic countries are preparing to launch new direct routes into Krabi: Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, each operating two flights a week, reflecting Krabi airport's readiness to handle international flights. Ekapong said the new direct routes will provide an added boost to the local economy and help MOTHER's revenue expand in line with its operating plan.

Ekapong Chokchaiwittan, Managing Director of Mother Marketing Public Company Limited, or MOTHER, a retail and wholesale consumer goods business operating under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga and Surat Thani provinces, said the business outlook for the fourth quarter of 2026 is expected to continue growing, driven by late-year high-season tourism as foreign visitors arrive in Krabi. The Krabi Provincial Office of Tourism and Sports forecasts that in 2026 more than 5.2 million tourists will visit, generating more than 100 billion baht in revenue, with the late-year high season alone expected to see at least 20 billion baht in spending, significantly lifting sales at each branch in tourist areas. Meanwhile, in late November, airlines from the Scandinavian countries are preparing to launch new direct routes into Krabi: Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, each operating two flights per week, reflecting Krabi airport's readiness to handle international flights. Ekapong said the late-year high season is an important opportunity that helps boost purchasing power from foreign tourists, and the launch of new direct routes by the Scandinavian airlines will be an added force stimulating the local economy and keeping it lively, supporting MOTHER's revenue growth in line with its operating plan.

Analysts expect the retail and wholesale sector to benefit from the government's plan to consider extending the Thai Chai Thai Plus programme by another one to two months. Wilasinee Boonmasoongson, assistant managing director at Global Securities, or GBS, said the stocks expected to gain include Thanapiriya Public Company Limited, or TNP, K&K Superstore Southern Public Company Limited, or KK, and Mother Marketing Public Company Limited, or MOTHER. The research team holds a positive view on TNP, expecting second-half 2026 operating results to grow on from a positive second quarter of 2026, after same-store sales growth, or SSSG, turned back up by 4.9% from still-negative levels in April before starting to recover in May, supported further by the increase in the state welfare card spending limit from June to September. TNP plans to expand to 64 branches, and under its JUMP+ plan aims to open about 30 more branches by the end of 2028, or roughly 10 per year. The research team estimates TNP will post revenue of 3.396 billion baht in 2026, growing about 10% from a year earlier, and net profit of 229 million baht, up about 8% year on year. For the six months of 2026, TNP recorded sales revenue of 1.62397 billion baht, an increase of 158.58 million baht, or 10.82%, from the same period a year earlier, and net profit of 103.59 million baht.

Kroger is betting on private-label brands to lower prices and protect margins, a strategy Costco has long used with its Kirkland Signature label. On the chain's second-quarter earnings call, CEO Gregory Foran said Private Selection sales rose more than 14% during the quarter, driven by strong customer response to new products including more ready-to-heat and ready-to-eat meals, and that brand sales across the portfolio grew faster than national brands with penetration up approximately 50 basis points. Kroger also plans to expand SmartWay, its opening price point brand, with more items, broader coverage across the store, and improved visibility in store and online. Data from Numerator cited by Retail Dive shows Kroger's private-label sales in produce, meat, seafood, deli and prepared foods, and in-store bakery rose by about $420 million over the 12-month period ended July 31. The push comes as an August NielsenIQ study found 58% of consumers don't care whether a product is a national brand or private label, 68% view private-label products as a good alternative to national brands, and 69% believe they offer good value for money, while Circana data puts U.S. private-label sales at $330 billion, a 24% unit share and 23% dollar share of the total market.

High Tide reported record third-quarter fiscal 2026 results, with revenue rising 33% year over year and 11% sequentially to CAD 198.8 million for the quarter ended July 31, 2026. Adjusted EBITDA increased 52% from a year earlier and 17% sequentially to CAD 16.2 million, an 8.2% margin that was the company's highest in 12 quarters, while operating income totaled CAD 8.7 million and reported net income reached a record CAD 12.7 million. Chief Executive Officer Raj Grover said the quarter was the strongest financial performance in company history, and Chief Financial Officer Mayank Mahajan noted consolidated gross margin held at 27%, with brick-and-mortar at 27% and medical cannabis distribution at 26%. High Tide generated CAD 7 million in free cash flow, its best in four quarters, and operated 232 Canna Cabana stores in Canada, on track to add 20 during calendar 2026 toward a long-term goal of 350 locations. Its German Remexian medical cannabis distribution business sold 10.2 metric tons, up 35% sequentially, generating CAD 38.2 million in revenue and CAD 4.4 million in adjusted EBITDA, and management said it is evaluating international opportunities including the United Kingdom while prioritizing disciplined deal-making in Canada and Germany.

Bank of America reiterated a Buy rating on Casey's General Stores while lowering its price objective to $875 from $975, arguing the roughly 14% post-earnings selloff has created an opportunity. Analyst Lisa K. Lewandowski said the reduced target reflects near-term remodeling noise, a cautious U.S. consumer, and a recent re-rating across convenience-store stocks, though the new target still implies about 39% upside from the $629.03 share price listed in the Sept. 9 note. Casey's reported fiscal first-quarter diluted earnings of $7.37 per share, up 27.7% from a year earlier, with net income climbing 27.1% to $273.7 million and EBITDA up 17.1% to $485.1 million; inside same-store sales rose 3.2% on a 42.2% inside margin, while fuel gross profit increased 19.6% to $446.9 million on a fuel margin of 47.8 cents per gallon. The company left its fiscal 2027 outlook unchanged, still expecting inside same-store sales growth of 2% to 5%, an inside margin above 42%, EBITDA growth of 8% to 10%, and at least 120 new stores through acquisitions and new construction. BofA estimates the conversion of acquired CEFCO stores, which require roughly four to six weeks of closures for kitchen and other upgrades, cut first-quarter inside same-store sales by about 25 basis points and fuel sales by about 50 basis points, a drag expected to continue through the fiscal third quarter, though remodeled locations typically see sales rise about 30% once reopened. BofA also raised its earnings estimates, forecasting EPS of $21.77 in fiscal 2027, $24.06 in fiscal 2028, and $26.64 in fiscal 2029, with the $875 target based on 18.9 times projected fiscal 2028 enterprise value to EBITDA.

Kroger reported second-quarter revenue of $34.62 billion, up 2% year on year and in line with analyst estimates of $34.64 billion, while GAAP earnings per share of $1.05 also came in line with the $1.06 consensus. Full-year GAAP EPS guidance of $5.20 at the midpoint beat analyst estimates by 2.8%, and operating margin held at 2.8%, matching the same quarter last year, though same-store sales were flat after a 3.4% gain a year earlier. On the earnings call, CEO Gregory S. Foran told analysts that price investments are geographically targeted and funded through disciplined cost control, and said cost pressures from fuel and supplier costs are mounting while the company's value proposition improved versus competitors in the quarter. Foran described a multi-year plan to gradually improve shelf price value funded by operational efficiencies, cited untapped opportunities in shrink, out-of-stocks and sourcing, and pointed to natural, organic and prepared foods plus private label offerings such as sushi and premium frozen meals as drivers of market share gains. Kroger also faced headwinds from a cyclospora outbreak that weighed on produce sales and from continued pressure from lower drug prices in the pharmacy segment, and the stock trades at $58.72, up from $56.95 just before the earnings.

Kroger CEO Gregory Foran told the supermarket chain's second-quarter earnings call that the company must be relentless on cost, with sourcing and savings coming in ahead of plan this quarter, and that every dollar taken out can be reinvested in areas customers will see. Foran, who has spent his first year in the job visiting Kroger locations, said opportunity remains inside the stores through better in-stocks, merchandising, standards and shrink management, and noted on-shelf availability reached an all-time high while pickup perfect orders were the best ever. Kroger has also expanded its loyalty program, rebranding Fuel Points as simply Points so customers can apply savings at the pump or directly to their grocery bill in-store or online, and has leaned on its Smart Way opening price point brand with more items and broader store coverage. The push comes as Kroger, with a market capitalization of $35.83 billion, lacks the buying power of Amazon at $2.76 trillion and Walmart at $852.7 billion, and unlike those rivals it must make money from selling groceries rather than using them as a loss leader. Amazon CEO Andy Jassy said the company did over $100 billion in gross sales in its grocery business on everyday essentials last year alone excluding Whole Foods Market and Amazon Fresh, while Kroger posted $34.6 billion in total sales for the second quarter, and Walmart U.S. Chief Merchant Julie Barber said in July that the chain is making even more investments in price with thousands of Rollbacks across beef, fresh produce and beverages. GlobalData Managing Director Neil Saunders told RetailWire that Kroger has enormous reach and powerful economies of scale but has failed to capitalize on them, becoming a bland, middle-market grocer that does not win on price, experience, private label or e-commerce the way Walmart does.

Mission Produce reported a 38% year-over-year jump in avocado volumes in the third quarter of fiscal 2026, aided by Calavo and higher legacy Mission Produce volumes, while average per-unit avocado selling prices declined 9% and gross margin contracted 270 basis points to 9.9%. Adjusted EBITDA of $32.4 million exceeded management's guidance, and the company expects fourth-quarter adjusted EBITDA of $52-$55 million, supported by a greater contribution from its owned Peruvian crop, the seasonal blueberry ramp, a full quarter of Calavo and better avocado margin dynamics. Mission Produce also raised its annualized Calavo synergy target to more than $30 million from at least $25 million, with benefits beginning in the fourth quarter and building through fiscal 2027. U.S. retail avocado volume rose about 9% year over year despite a 15% sequential increase in retail prices. Shares of Mission Produce have gained 16.4% in the last three months compared with the industry's growth of 8.1%, and the stock carries a Zacks Rank #2 (Buy).

The Kroger Co. reported second-quarter fiscal 2026 earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.05, and its shares gained 2.7%. Adobe Inc. reported third-quarter fiscal 2026 earnings of $6.13 per share, beating the Zacks Consensus Estimate of $6.08, with its shares rising 1.4%. Copart, Inc. reported fourth-quarter fiscal 2026 earnings of 35 cents per share, missing the Zacks Consensus Estimate of 39 cents, and its shares declined 2.6%. T-Mobile US, Inc. shares added 2.9% as communications emerged as one of the biggest winning sectors of the day.

Thanapiriya Public Company Limited, or TNP, a major retail and wholesale consumer goods operator in the northern region, expects its third-quarter 2026 operating results to improve. Amorn Puthipiriya, Deputy Managing Director, told "Than Hoon" that the company is supported by the tourism sector, which has boosted purchasing power and spending volumes, lifting the average purchase per bill and spending per person from the previous quarter. At the same time, the third quarter of 2026 is a quarter in which the company benefits from government economic stimulus measures for the full quarter, particularly the Thai Help Thai Plus programme, which runs for four months from June to September 2026, and the increase in the allowance for state welfare cardholders from 300 baht to 1,000 baht per person per month, which began last June. Although the company did not join the Khon La Khrueng Plus 60:40 programme because it is limited to small shops, the company benefits indirectly through smaller stores. The company targets sales revenue growth of 10-15% this year and expects SSSG to grow in the 10-15% range, even though the overall picture for 2026 may come in below 10%. On branch expansion plans, TNP currently has 60 branches, with one more planned to open in September 2026, another in October, and about three new branches in preparation, expected to open gradually by no later than November 2026. For the six-month period of 2026, the company recorded sales revenue of 1.62397 billion baht, an increase of 158.58 million baht, or 10.82%, from the same period a year earlier, and net profit of 103.59 million baht, driven mainly by new branch openings. SSSG rose 4.9% compared with the same period a year earlier, along with expansion through the wholesale channel via the head office and sales through authorised distributors.

Kroger has lost more than $12 billion in consumer packaged goods spending to Amazon, Walmart and Costco over the past year, according to a recent Numerator report. Within that total, CPG spending at Kroger and Ralphs stores declined by $715 million and $516 million respectively, as customers made 9 million and 5.5 million fewer trips than a year earlier, producing direct losses of more than $1 billion for the retailer. Lower-income shoppers pulled back their CPG spending by 5.2% year over year and made 30 million fewer trips, a shift the report describes as creating a $1 billion spending gap for Kroger, even as the chain added more than 1 million high-income households and lost 700,000 lower-income ones. On Kroger's September 11 earnings call, CEO Greg Foran said customers remain under pressure from reduced SNAP benefits, higher fuel prices and softer consumer confidence, and CFO David Kennerley said sales were softer than expected, with identical sales excluding fuel up just 0.2% in the second quarter of 2026. Kroger cut its full-year 2026 outlook for identical sales excluding fuel to growth of 0.2% to 0.8%, down from a previous expectation of 1% to 2%, while leaning into private label, including Private Selection, whose sales rose more than 14% in the quarter, and expanding its low-price Smart Way brand.

Kroger reported second-quarter 2026 adjusted earnings of $1.09 per diluted share, up 5% from a year earlier, while identical sales without fuel grew just 0.2% and the company lowered its full-year identical sales without fuel guidance to 0.2% to 0.8% from an initial range of 1% to 2%. Adjusted FIFO operating profit was $1.1 billion in the quarter, and the company maintained its full-year adjusted FIFO operating profit guidance at $5 billion to $5.2 billion and its full-year adjusted EPS guidance at $5.10 to $5.30. E-commerce sales grew 20%, marking a second consecutive quarter of profitable e-commerce growth, and retail media revenue grew 24%, its best performance since 2021, with media monetization up 88 basis points. Identical sales without fuel absorbed a combined 265 basis point drag, comprising roughly 140 basis points from the Inflation Reduction Act, 60 basis points from the brand-to-generic shift, 30 basis points from egg deflation, and 35 basis points from the Cyclospora outbreak in produce. Kroger repurchased approximately $1.2 billion of shares through the first half under its existing $2 billion authorization, completed 12 major store projects in the quarter, and ended the period with a net debt to adjusted EBITDA ratio of 1.91 against a target range of 2.3 to 2.5.

Kroger trimmed its annual sales guidance amid fierce competition for grocery spending. Oracle shares moved higher after the software company's results featured better-than-expected cloud revenue on strong AI demand. Restoration Hardware shares were also on the move after the home furnishing retailer's quarterly earnings beat despite a weaker housing market and consumer spending environment.

Kroger reported second-quarter 2026 non-GAAP earnings of $1.09 per share, beating estimates by $0.04, on revenue of $34.6 billion, up 2.1% year over year and ahead of expectations by $70 million. Excluding fuel, the sale of Vitacost and the exit of certain fulfillment centers, sales rose 0.1% compared to the same period last year. The quarter's LIFO charge was $39 million, down from $62 million a year earlier. In its updated full-year 2026 guidance, Kroger narrowed identical sales without fuel to a range of 0.2% to 0.8%, from 1.0% to 2.0% as of June 18, 2026, while keeping FIFO operating profit at $5.0 to $5.2 billion, EPS at $5.10 to $5.30 against a consensus of $5.20, free cash flow at $2.7 to $2.9 billion, capital expenditure at $3.8 to $4.0 billion, and the tax rate at 23%.

Land and Houses Securities issued an analysis recommending the purchase of two stocks, CHG and CPALL. For CHG, it sets a target price of 1.91 baht, with support estimated at 1.48 and 1.52 baht and resistance at 1.7 and 1.8 baht. It views the prospect of an adjustment to the social security reimbursement rate as an additional positive factor for profit forecasts, though clarity on the rate and the timing of its implementation is still awaited. It also expects third-quarter 2026 profit trends to recover both year on year and quarter on quarter, driven by the arrival of the high season for seasonal diseases, higher service utilisation, and the beginnings of a recovery in revenue from foreign patients. Meanwhile, losses at Mae Sot Hospital are trending lower, helping to support the profit recovery in the second half of 2026. For CPALL, it recommends buying with a target price of 64 baht, estimating support at 45 and 46 baht and resistance at 48.5 and 49.5 baht. It expects same-store sales growth in the third quarter of 2026 to be positive on a quarter-to-date basis, supporting solid growth in the ready-to-drink beverage segment thanks to hot weather, while the impact of the Thai Plus project is limited and the rising share of higher-margin ready-to-drink and ready-to-eat products helps drive net margin expansion year on year. It expects third-quarter 2026 profit to slow quarter on quarter as the low season sets in, but to grow year on year, supported by collaboration campaigns and store expansion, with an additional boost from the continued recovery in Chinese tourists that should carry growth momentum into the high season in the fourth quarter of 2026.

Casey's General Stores reported first-quarter fiscal 2027 earnings with diluted EPS rising 28% to $7.37 and net income up 27% to $274 million. Total revenue increased 24.3% to $5.68 billion, driven by a 33% jump in average retail fuel prices to $3.99 per gallon, while inside sales grew 5.6% to $1.78 billion. Prepared food and dispensed beverage sales rose 7.4% to $493 million, and same-store inside sales climbed 3.2%. Fuel margin was strong at $0.478 per gallon, though same-store gallons dipped 0.3% due to CEFCO store remodels, which caused a 25 basis point headwind to inside same-store sales and a 50 basis point headwind to fuel gallons. The company maintained its quarterly dividend at $0.65 per share and repurchased about $46 million in shares during the quarter.

Mother Marketing or MOTHER expects its retail business in Q4 2026 to rebound and be the best-performing quarter of the year, as it coincides with the peak tourism season. Additionally, the tourism stimulus measures under the "Thai Travel Thai Plus" project are expected to boost purchasing power, especially in Krabi province, which is the company's main customer base. The company plans to open one more new branch in Q4, bringing the total to 25 branches by year-end as targeted. It also expects full-year same-store sales growth (SSSG) of approximately 5%. Meanwhile, the company maintains its profit margins by avoiding price wars and is confident that revenue in 2026 will grow at a double-digit rate. In Q1 2026, the company reported a net profit of 12.61 million baht, up 27.76%, and total revenue of 418.73 million baht, up 6.40%.

Mission Produce Inc. reported fiscal third-quarter adjusted earnings of 16 cents per share, surpassing the Zacks Consensus Estimate of 10 cents, though down from 24 cents a year ago. Revenues rose 25.8% year over year to $450 million, beating the $368 million consensus, driven by a 37.7% increase in avocado volume to 252.7 million pounds, reflecting the Calavo acquisition and higher legacy volume. Adjusted EBITDA of $32.4 million exceeded the company's guidance range of $28 million to $32 million, benefiting from stronger-than-expected International Farming results and solid Calavo performance. The company reaffirmed second-half fiscal 2026 adjusted EBITDA guidance of $84 million to $88 million and raised its annualized Calavo synergy target to more than $30 million from at least $25 million.