Fresh Del Monte Produce Reports Mixed Q3 and Nine-Month Results, with Increased Profitability and Asset Sales

Fresh Del Monte Produce Inc. reported its financial results for the quarter and nine months ended September 27, 2024, showcasing a mixed performance in revenue and profitability compared to the previous fiscal period.

For the third quarter of 2024, net sales reached $1,019.5 million, a slight increase from $1,003.1 million in the same quarter of 2023. However, for the nine-month period, net sales decreased to $3,267.0 million from $3,312.1 million year-over-year. The gross profit for the quarter improved significantly to $93.8 million, up from $74.4 million, while the nine-month gross profit remained relatively stable at $289.2 million compared to $288.2 million in the prior year.

Operating income for the third quarter surged to $53.9 million, a notable increase from $25.4 million in the prior year, driven by higher gross profit margins. However, for the nine-month period, operating income decreased to $166.0 million from $171.9 million, primarily due to lower gains on disposals of assets. Net income for the quarter was $41.9 million, compared to $8.8 million in the same quarter last year, while net income for the nine months rose to $121.2 million from $104.9 million.

The company’s Fresh and value-added products segment saw net sales of $623.7 million in Q3 2024, up from $574.0 million in Q3 2023, attributed to increased sales of avocados and pineapples. Conversely, banana sales faced competitive pressures, contributing to a decline in overall sales for the nine-month period.

Fresh Del Monte's total assets as of September 27, 2024, were reported at $3,156.9 million, a decrease from $3,184.1 million at the end of 2023. Total liabilities also decreased significantly to $1,149.3 million from $1,271.4 million, largely due to a reduction in long-term debt, which fell to $274.8 million from $406.1 million.

Strategically, the company completed the acquisition of the remaining 25% of a subsidiary for $5.2 million in cash, which resulted in a $42.7 million increase in paid-in capital. Additionally, Fresh Del Monte is in the process of selling certain assets of its Fresh Leaf Farms business for approximately $16.5 million, part of a broader strategy to streamline operations.

The company declared a quarterly cash dividend of $0.25 per share, an increase from $0.20 in the prior year, reflecting its improved profitability. As of September 27, 2024, Fresh Del Monte maintained a strong liquidity position with $50.8 million in cash and cash equivalents and significant unused capacity under its credit facilities.