Fresh and Value-Added Products for Fiscal 2024:
Net Sales 5% Higher, Gross Margin 9.3% versus 6.8% in the Prior
Year
Long-Term Debt Reduced by $156 Million or 39%
to $244 Million at the End of Fiscal Year 2024
Company Increased Quarterly Dividend for the
Third Consecutive Year
Fresh Del Monte Produce Inc. (NYSE: FDP), ("Fresh Del Monte" or
the "Company") today reported financial results for the fourth
quarter and the full fiscal year ended December 27, 2024.
"Our full-year 2024 results reflect the effectiveness of our
strategic focus and operational improvements. This success,
achieved despite facing several challenges in 2024, was primarily
driven by the exceptional performance of our fresh and value-added
products segment, particularly pineapples, avocados, and fresh-cut
fruit, which continue to fuel our growth and deliver strong gross
margins for the Company,” said Mohammad Abu-Ghazaleh, Fresh Del
Monte’s Chairman and Chief Executive Officer. "Other notable 2024
performance highlights include a reduction in long-term debt,
driven by strong cash flow, and a quarterly dividend increase for
the third consecutive year. Building on this momentum and focusing
on our core strengths, we remain committed to expanding key
segments and delivering sustainable value for our
shareholders."
Financial highlights for the fourth quarter 2024:
Net sales for the fourth quarter of 2024 were $1,013.2 million
compared with $1,008.6 million in the prior-year period. The
increase in net sales was driven by higher net sales in the
Company's fresh and value-added products segment, primarily due to
higher per unit selling prices. The increase was partially offset
by a decrease in net sales in the banana segment due to lower per
unit selling prices and reduced sales volume, as well as lower net
sales in the Company's other products and services segment.
Gross profit for the fourth quarter of 2024 was $68.7 million
compared with $62.5 million in the prior-year period. The increase
in gross profit was principally driven by higher net sales in the
Company's fresh and value-added products segment, partially offset
by lower per unit selling prices and reduced sales volume in the
banana segment, along with higher per unit production and
procurement costs.
Adjusted gross profit(1) for the fourth quarter of 2024 was
$68.9 million compared with $56.2 million in the prior-year period.
Adjusted gross profit for the fourth quarter excludes $0.2 million
of other product-related charges, primarily related to inventory
write-offs incurred due to flood damage at the Company's melon
farms in Costa Rica. In the prior-year period, Adjusted gross
profit excluded other product-related charges (credits), which
primarily consisted of $6.9 million of insurance recoveries related
to severe flooding in the Company's Greece production facility in
2023, partially offset by inventory write-offs of $0.6 million due
to rerouting of shipments as a result of the conflict in the Red
Sea.
Operating income for the fourth quarter of 2024 was $30.3
million compared with an operating loss of $113.4 million in the
prior-year period. The notable change in operating income is
primarily attributable to a $133.8 million non-cash asset
impairment charge in the prior-year period, primarily pertaining to
long-lived assets in the Company's Mann Packing operations and
goodwill in its prepared foods reporting unit. The one-time
accounting adjustment significantly impacted the prior year’s
results.
Adjusted operating income(1) for the fourth quarter of 2024 was
$17.1 million compared with $12.0 million in the prior-year
period.
(1) Non-GAAP financial measure. Reconciliations and other
information required by Regulation G can be found below under
"Non-GAAP Measures."
Adjusted operating income excludes the above-mentioned $0.2
million other product-related charges, $2.9 million in asset
impairment and other charges, net, primarily due to impairments
related to damaged and unused housing at farms in Costa Rica and
goodwill associated with the Company's vegetable reporting unit,
and a gain on asset sales of $16.3 million, primarily related to
the sale of a Canadian distribution center and certain assets of
Fresh Leaf Farms in the Company's North America operations. In the
prior-year period, Adjusted operating income excluded the
above-mentioned non-cash impairment of $133.8 million, a $6.3
million other product-related credit, and a gain on an asset sale
of $2.1 million related to the sale of vehicles in the Middle
East.
FDP net income(2) for the fourth quarter of 2024 was $20.4
million compared with FDP net loss of $106.4 million in the
prior-year period and Adjusted FDP net income(1) was $12.3 million
compared with $11.8 million in the prior-year period. Adjusted FDP
net income for the fourth quarter of 2024, and prior-year period,
excludes the above-mentioned other product-related charges, asset
impairment and other charges, net, and gain on sale of assets, net
of tax effect.
Financial highlights for the full fiscal year 2024:
For full fiscal year 2024, net sales were $4,280.2 million
compared with $4,320.7 million in the prior-year period. The
decrease in net sales was primarily due to lower sales volume and
per unit selling prices in the Company's banana segment, as well as
the negative impact of exchange rate fluctuations, primarily versus
the Japanese yen and Korean won, compared with the prior-year
period. The decrease was partially offset by higher per unit
selling prices and sales volume in the Company's fresh and
value-added products segment.
For full fiscal year 2024, gross profit was $357.9 million
compared with $350.7 million in the prior-year period. The increase
in gross profit was primarily driven by higher net sales in the
Company's fresh and value-added products segment, along with lower
ocean freight costs, partially offset by lower net sales in the
Company's banana segment, higher production and procurement costs,
and the negative impact of fluctuations in exchange rates,
primarily related to the Costa Rican colon and Japanese yen.
For full fiscal year 2024, Adjusted gross profit was $358.9
million compared with $354.5 million in the prior-year period.
Adjusted gross profit for full fiscal year 2024 excludes $1.0
million of other product-related charges, primarily related to $1.2
million of severance charges from the outsourcing of certain
functions in the Company's fresh and value-added operations, and
$1.0 million of additional logistic costs and inventory write-offs
incurred as a result of Hurricane Beryl during July 2024. These
were partially offset by a $1.7 million insurance recovery
associated with severe flooding in the Company's Greece production
facility in 2023. Adjusted gross profit in the prior-year period
excluded other product-related charges of $3.8 million, primarily
related to $1.5 million of inventory write-offs due to the sale of
two distribution centers in Saudi Arabia, $1.4 million of inventory
write-offs and clean-up costs, net of insurance recoveries, tied to
the flooding in Greece, and $0.6 million of inventory write-offs
due to rerouting of shipments as a result of the conflict in the
Red Sea.
For the full fiscal year 2024, operating income was $196.3
million compared with $58.5 million in the prior-year period. The
increase in operating income was primarily driven by lower asset
impairment charges and higher gross profit, partially offset by
higher selling, general and administrative expenses compared to the
prior-year period.
For the full fiscal year 2024, Adjusted operating income was
$158.6 million compared with $165.3 million in the prior-year
period. The comparison excludes the above-mentioned other
product-related charges, asset impairment charges, and gains on
asset sales. The year-over-year decrease in Adjusted operating
income was primarily driven by higher selling, general and
administrative expenses.
For the full fiscal year 2024, FDP net income was $142.2 million
compared with a net loss of $11.4 million in the prior-year period
and Adjusted FDP net income was $116.2 million compared with $101.7
million in the prior-year period. Adjusted FDP net income for the
full fiscal year 2024, and prior-year period, excludes the
above-mentioned other product-related charges, asset impairment and
other charges and gain on sale of assets, net of tax effect.
(2) "FDP net income/loss" as referenced throughout this release
is defined as Net income/loss attributable to Fresh Del Monte
Produce Inc.
Fourth Quarter and Full Fiscal Year
2024 Business Segment Performance and Selected Financial
Data
(As reported in business segment data)
Fresh Del Monte Produce Inc.
and Subsidiaries
Business Segment Data
(U.S. dollars in millions,
except for Gross Margin) - (Unaudited)
Quarters ended
December 27, 2024
December 29, 2023
Segment Data:
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
612.3
61
%
$
46.1
67
%
7.5
%
$
582.8
57
%
$
22.0
35
%
3.8
%
Banana
356.8
35
%
14.0
20
%
3.9
%
379.6
38
%
37.6
60
%
9.9
%
Other products and services
44.1
4
%
8.6
13
%
19.5
%
46.2
5
%
2.9
5
%
6.3
%
$
1,013.2
100
%
$
68.7
100
%
6.8
%
$
1,008.6
100
%
$
62.5
100
%
6.2
%
Years ended
December 27, 2024
December 29, 2023
Segment Data:
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
2,606.9
61
%
$
243.3
68
%
9.3
%
$
2,477.8
57
%
$
167.3
48
%
6.8
%
Banana
1,475.9
34
%
86.8
24
%
5.9
%
1,638.2
38
%
163.3
47
%
10.0
%
Other products and services
197.4
5
%
27.8
8
%
14.1
%
204.7
5
%
20.1
5
%
9.8
%
$
4,280.2
100
%
$
357.9
100
%
8.4
%
$
4,320.7
100
%
$
350.7
100
%
8.1
%
Fourth Quarter 2024 Business Segment Performance
Fresh and Value-Added
Products
Net sales for the fourth quarter of 2024 increased $29.5
million, or 5%, to $612.3 million compared with $582.8 million in
the prior-year period. The increase in net sales was primarily
driven by higher per unit selling prices and sales volume in the
Company's avocado product line, as well as higher per unit selling
prices in its pineapple product line due to increased demand of the
specialty pineapples, Honeyglow® and Pinkglow®. Additionally, there
was higher sales volume and higher per unit selling prices in the
Company's fresh-cut fruit product line. The increase was partially
offset by lower net sales in its prepared food and vegetable
product lines due to lower sales volume, as well as lower per unit
selling prices in the Company's fresh-cut vegetable product
line.
Gross profit for the fourth quarter of 2024 was $46.1
million compared with $22.0 million in the prior-year period. The
increase in gross profit was primarily driven by higher net sales
and lower per unit production costs in the Company's pineapple and
fresh-cut product lines, partially offset by higher distribution
and ocean freight costs. Gross margin increased to 7.5% compared
with 3.8% in the prior-year period.
Banana
Net sales for the fourth quarter of 2024 were $356.8
million compared with $379.6 million in the prior-year period. The
decrease in net sales was primarily driven by lower sales volume in
North America, partially offset by higher sales volume in the
Middle East.
Gross profit for the fourth quarter of 2024 was $14.0
million compared with $37.6 million in the prior-year period. The
decrease in gross profit was primarily due to lower net sales and
higher per unit production and procurement costs, offset by lower
distribution and ocean freight costs. Gross margin decreased to
3.9% compared with 9.9% in the prior-year period.
Other Products and
Services
Net sales for the fourth quarter of 2024 were $44.1
million compared with $46.2 million in the prior-year period. The
decrease in net sales was primarily due to lower net sales in the
Company's third-party ocean freight services business.
Gross profit for the fourth quarter of 2024 was $8.6
million compared with $2.9 million in the prior-year period. The
increase in gross profit was primarily due to lower per unit
production costs in the Company's poultry and meats business. Gross
margin increased to 19.5% compared with 6.3% in the prior-year
period.
Full Fiscal Year 2024 Business Segment Performance and
Selected Financial Data (continued)
(As reported in business segment data)
Fresh and Value-Added
Products
Net sales for full fiscal year 2024 were $2,606.9 million
compared with $2,477.8 million in the prior-year period. The
increase in net sales was primarily a result of higher per unit
selling prices and sales volume in the Company's avocado and
pineapple product lines due to stronger demand, as well as higher
sales volume in the Company's melon product line. The increase was
partially offset by lower net sales in the Company's vegetable and
fresh-cut fruit product lines due to lower sales volume, and the
unfavorable impact of fluctuations in exchange rates, primarily due
to a weaker Japanese yen and Korean won.
Gross profit for full fiscal year 2024 was $243.3 million
compared with $167.3 million in the prior-year period. The increase
in gross profit was primarily driven by higher net sales and lower
per unit production costs in the Company's pineapple, fresh-cut
fruit and fresh-cut vegetables product lines, partially offset by
the negative impact of fluctuations in exchange rates, primarily
due to a stronger Costa Rican colon. Gross margin increased to 9.3%
compared with 6.8% in the prior-year period.
Banana
Net sales for full fiscal year 2024 were $1,475.9 million
compared with $1,638.2 million in the prior-year period. The
decrease in net sales was primarily due to lower sales volume in
North America, driven by competitive market pressures, lower sales
volume in Asia due to decreased supply from the Philippines as a
result of weather-related events, and the negative impact of
exchange rate fluctuations, primarily due to a weaker Japanese yen
and Korean won.
Gross profit for full fiscal year 2024 was $86.8 million
compared with $163.3 million in the prior-year period. The decrease
in gross profit was primarily due to lower net sales, higher per
unit production and procurement costs, and the negative impact of
fluctuations in exchange rates due to a stronger Costa Rican colon,
partially offset by lower per unit ocean freight and distribution
costs. Gross margin decreased to 5.9% compared with 10.0% in the
prior-year period.
Other Products and
Services
Net sales for full fiscal year 2024 were $197.4 million
compared with $204.7 million in the prior-year period. The decrease
in net sales was primarily due to the sale of the Company's
plastics subsidiary during the prior-year period, partially offset
by higher net sales in the poultry and meats business, driven by an
increase in per unit selling prices.
Gross profit for full fiscal year 2024 was $27.8 million
compared with $20.1 million in the prior-year period. The increase
in gross profit was primarily due to higher net sales and lower per
unit production costs in the Company's poultry and meats business,
partially offset by lower net sales in its third-party ocean
freight services business. Gross margin increased to 14.1% compared
with 9.8% in the prior-year period.
Cash Flows
Net cash provided by operating activities for full fiscal year
2024 was $182.5 million, compared with $177.9 million in the
prior-year period. The increase in net cash provided by operating
activities was principally attributable to current year working
capital fluctuations, primarily from higher levels of accounts
payable and accrued expenses compared to the prior year, due to the
timing of period-end payments to suppliers.
Long Term Debt
Long term debt as of the end of 2024 decreased to $244.1 million
from $400.0 million as of the prior-year end.
Quarterly Cash Dividend
On February 21, 2025, the Company's Board of Directors declared
an increase to the quarterly cash dividend to $0.30 per share,
payable on March 28, 2025, to shareholders of record on March 10,
2025.
Fresh Del Monte Produce Inc.
and Subsidiaries
Consolidated Statements of
Operations
(U.S. dollars in millions,
except share and per share data) - (Unaudited)
Quarter ended
Year ended
Statement of Operations:
December 27, 2024
December 29, 2023
December 27, 2024
December 29, 2023
Net sales
$
1,013.2
$
1,008.6
$
4,280.2
$
4,320.7
Cost of products sold
944.3
952.4
3,921.3
3,966.2
Other product-related charges
(credits)
0.2
(6.3
)
1.0
3.8
Gross profit
68.7
62.5
357.9
350.7
Selling, general and administrative
expenses
48.4
44.2
196.9
186.7
Gain on disposal of property, plant and
equipment, net
12.9
2.1
39.5
37.9
Asset impairment and other charges,
net
2.9
133.8
4.2
143.4
Operating income (loss)
30.3
(113.4
)
196.3
58.5
Interest expense
3.6
3.7
18.4
24.1
Interest income
0.5
0.3
1.2
1.4
Other expense (income), net
3.2
(3.5
)
8.4
19.3
Income (loss) before income taxes
24.0
(113.3
)
170.7
16.5
Income tax provision (benefit)
3.6
(6.8
)
29.1
18.1
Net income (loss)
$
20.4
$
(106.5
)
$
141.6
$
(1.6
)
Less: Net income (loss) attributable to
redeemable and noncontrolling interests
—
(0.1
)
(0.6
)
9.8
Net income (loss) attributable to Fresh
Del Monte Produce Inc.
$
20.4
$
(106.4
)
$
142.2
$
(11.4
)
Earnings (loss) per share(1):
Basic
$
0.43
$
(2.22
)
$
2.97
$
(0.24
)
Diluted
$
0.42
$
(2.22
)
$
2.96
$
(0.24
)
Dividends declared per ordinary share
$
0.25
$
0.20
$
1.00
$
0.75
Weighted average number of ordinary
shares:
Basic
47,939,455
47,868,948
47,876,129
47,979,143
Diluted
48,257,648
47,868,948
48,040,005
47,979,143
(1) Earnings per share ("EPS") is
calculated based on Net income (loss) attributable to Fresh Del
Monte Produce Inc.
Fresh Del Monte Produce Inc.
and Subsidiaries
Consolidated Balance
Sheets
(U.S. dollars in millions) -
(Unaudited)
December 27, 2024
December 29, 2023
Assets
Current assets:
Cash and cash equivalents
$
32.6
$
33.8
Trade accounts receivable, net
393.2
387.0
Other accounts receivable, net
78.0
95.1
Inventories, net
595.3
599.9
Assets held for sale
9.5
4.5
Prepaid expenses and other current
assets
24.3
24.0
Total current assets
1,132.9
1,144.3
Investment in and advances to
unconsolidated companies
39.9
22.2
Property, plant and equipment, net
1,191.6
1,256.4
Operating lease right-of-use assets
186.1
213.8
Goodwill
396.3
401.9
Intangible assets, net
33.2
33.3
Deferred income taxes
47.5
51.5
Other noncurrent assets
68.7
60.7
Total assets
$
3,096.2
$
3,184.1
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and accrued expenses
$
476.0
$
479.0
Current maturities of debt and finance
leases
1.5
1.4
Current maturities of operating leases
38.6
48.6
Income taxes and other taxes payable
17.0
11.6
Total current liabilities
533.1
540.6
Long-term debt and finance leases
248.9
406.1
Operating leases, less current
maturities
122.3
142.1
Retirement benefits
83.1
82.3
Other noncurrent liabilities
26.8
27.6
Deferred income taxes
75.2
72.7
Total liabilities
1,089.4
1,271.4
Commitments and contingencies
Shareholders' equity:
Preferred shares
—
—
Ordinary shares
0.5
0.5
Paid-in capital
605.0
597.7
Retained earnings
1,435.4
1,341.4
Accumulated other comprehensive loss
(50.4
)
(43.3
)
Total Fresh Del Monte Produce Inc.
shareholders' equity
1,990.5
1,896.3
Noncontrolling interests
16.3
16.4
Total shareholders' equity
2,006.8
1,912.7
Total liabilities and shareholders'
equity
$
3,096.2
$
3,184.1
Fresh Del Monte Produce Inc.
and Subsidiaries
Consolidated Statements of
Cash Flows
(U.S. dollars in millions) -
(Unaudited)
Year ended
December 27, 2024
December 29, 2023
Operating activities:
Net income (loss)
$
141.6
$
(1.6
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
78.5
84.8
Amortization of debt issuance costs
0.5
0.5
Share-based compensation expense
6.9
9.9
Asset impairments
3.7
141.3
Change in uncertain tax positions
(1.0
)
1.5
Gain on disposal of property, plant and
equipment, net and subsidiary
(39.5
)
(37.9
)
Deferred income taxes
3.6
(3.8
)
Gain on release of cumulative translation
adjustment
—
(2.4
)
Other, net
(6.6
)
(1.3
)
Changes in operating assets and
liabilities:
Receivables
(9.8
)
(19.3
)
Inventories
(1.5
)
64.7
Prepaid expenses and other current
assets
(2.4
)
1.7
Accounts payable and accrued expenses
11.2
(64.1
)
Other noncurrent assets and
liabilities
(2.7
)
3.9
Net cash provided by operating
activities
182.5
177.9
Investing activities:
Capital expenditures
(51.7
)
(57.7
)
Proceeds from sales of property, plant and
equipment and subsidiary
74.4
119.9
Insurance proceeds received for damage to
property, plant and equipment, net
5.7
—
Investments in and advances to
unconsolidated companies
(8.0
)
(5.3
)
Other investing activities
—
(0.5
)
Net cash provided by investing
activities
20.4
56.4
Financing activities:
Proceeds from debt
620.4
590.5
Payments on debt
(776.3
)
(730.3
)
Distributions to noncontrolling
interests
—
(17.9
)
Purchase of redeemable noncontrolling
interest
—
(5.2
)
Share-based awards settled in cash for
taxes
(0.9
)
(0.8
)
Dividends paid
(47.8
)
(35.9
)
Payment of deferred financing costs
(2.2
)
—
Repurchase and retirement of ordinary
shares
—
(11.8
)
Other financing activities
(3.1
)
(2.1
)
Net cash used in financing
activities
(209.9
)
(213.5
)
Effect of exchange rate changes on
cash
5.8
(4.2
)
Net (decrease) increase in cash and cash
equivalents
(1.2
)
16.6
Cash and cash equivalents, beginning
33.8
17.2
Cash and cash equivalents, ending
$
32.6
$
33.8
Non-GAAP Measures
The Company's results are determined in accordance with U.S.
generally accepted accounting principles (GAAP). Certain
information presented in this press release reflects adjustments to
GAAP measures such as amounts related to asset impairment and other
charges, net, gain on disposal of property, plant and equipment,
net, and subsidiary, and other product-related charges. These
adjustments result in non-GAAP financial measures and are referred
to in this press release as Adjusted gross profit, Adjusted gross
margin, Adjusted operating income, Adjusted FDP net income (loss),
and Adjusted diluted EPS. Management believes these adjustments
provide a more comparable analysis of the underlying operating
performance of the business.
This press release also includes non-GAAP measures such as
EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin.
EBITDA is defined as net income (loss) attributable to Fresh Del
Monte Produce Inc. excluding interest expense, interest income,
provision (benefit) for income taxes, depreciation and
amortization, and share-based compensation expense. Adjusted EBITDA
represents EBITDA with additional adjustments for non-recurring
items, including asset impairment and other charges (credits), net,
gain on disposal of property, subsidiary and other product-related
charges. EBITDA margin represents EBITDA as a percentage of net
sales, and Adjusted EBITDA margin represents Adjusted EBITDA as a
percentage of net sales.
Adjusted gross profit, Adjusted operating income, Adjusted FDP
net income (loss), and Adjusted EBITDA provide the Company with an
understanding of the results from the primary operations of its
business. The Company uses these metrics because management
believes they provide more comparable measures to evaluate
period-over-period operating performance since they exclude special
items that are not indicative of the Company's core business or
operations. These measures may be useful to an investor in
evaluating the underlying operating performance of the Company's
business because these measures:
- Are used by investors to measure a company's comparable
operating performance;
- Are financial measurements that are used by lenders and other
parties to evaluate creditworthiness; and
- Are used by the Company's management for various purposes,
including as measures of performance of its operating entities, as
a basis of strategic planning and forecasting, and in certain cases
as a basis for incentive compensation.
Because all companies do not use identical calculations, the
Company's presentation of these non-GAAP financial measures may not
be comparable to similarly titled measures used by other companies.
Reconciliations of non-GAAP financial measures to the most directly
comparable GAAP financial measures are provided in the financial
tables that accompany this release.
Fresh Del Monte Produce Inc.
and Subsidiaries
Non-GAAP
Reconciliation
(U.S. dollars in millions,
except per-share amounts) - (Unaudited)
Quarter ended
December 27, 2024
December 29, 2023
Gross profit
Operating income
Net income (loss) attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating (loss) income
Net income (loss) attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
As reported
$
68.7
$
30.3
$
20.4
$
0.42
$
62.5
$
(113.4
)
$
(106.4
)
$
(2.22
)
Adjustments:
Other product-related charges (credits)
(1)
0.2
0.2
0.2
—
(6.3
)
(6.3
)
(6.3
)
(0.13
)
Asset impairment and other charges, net
(2)
—
2.9
2.9
0.06
—
133.8
133.8
2.79
(Gain) on disposal of property, plant and
equipment, net and subsidiary (3)
—
(16.3
)
(16.3
)
(0.33
)
—
(2.1
)
(2.1
)
(0.04
)
Other adjustments (4)
—
—
—
—
—
—
—
—
Tax effects of all adjustments and other
tax-related items (5)
—
—
5.1
0.11
—
—
(7.2
)
(0.15
)
As adjusted
$
68.9
$
17.1
$
12.3
$
0.26
$
56.2
$
12.0
$
11.8
$
0.25
Year ended
December 27, 2024
December 29, 2023
Gross profit
Operating (loss) income
Net income (loss) attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating (loss) income
Net income (loss) attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
As reported
$
357.9
$
196.3
$
142.2
$
2.96
$
350.7
$
58.5
$
(11.4
)
$
(0.24
)
Adjustments:
Other product-related charges (credits)
(1)
1.0
1.0
1.0
0.02
3.8
3.8
3.8
0.08
Asset impairment and other charges, net
(2)
—
4.2
4.2
0.09
—
143.4
143.4
2.99
(Gain) on disposal of property, plant and
equipment, net and subsidiary (3)
—
(42.9
)
(42.9
)
(0.89
)
—
(40.4
)
(40.4
)
(0.84
)
Other adjustments (4)
—
—
—
—
—
—
7.6
0.16
Tax effects of all adjustments and other
tax-related items (5)
—
—
11.7
0.24
—
—
(1.3
)
(0.03
)
As adjusted
$
358.9
$
158.6
$
116.2
$
2.42
$
354.5
$
165.3
$
101.7
$
2.12
Fresh Del Monte Produce Inc.
and Subsidiaries
Segment Gross Profit Non-GAAP
Reconciliation
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
December 27, 2024
December 29, 2023
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and services
Gross profit (as reported)
$
46.1
$
14.0
$
8.6
$
22.0
$
37.6
$
2.9
Adjustments:
Other product-related charges (credits)
(1)
0.2
—
—
(6.3
)
—
—
Adjusted gross profit
$
46.3
$
14.0
$
8.6
$
15.7
$
37.6
$
2.9
Net Sales
$
612.3
$
356.8
$
44.1
$
582.8
$
379.6
$
46.2
Gross margin(a)
7.5
%
3.9
%
19.5
%
3.8
%
9.9
%
6.3
%
Adjusted gross margin(b)
7.6
%
3.9
%
19.5
%
2.7
%
9.9
%
6.3
%
Year ended
December 27, 2024
December 29, 2023
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and services
Gross profit (as reported)
$
243.3
$
86.8
$
27.8
$
167.3
$
163.3
$
20.1
Adjustments:
Other product-related charges (1)
0.6
0.4
—
3.7
0.1
—
Adjusted gross profit
$
243.9
$
87.2
$
27.8
$
171.0
$
163.4
$
20.1
Net Sales
$
2,606.9
$
1,475.9
$
197.4
$
2,477.8
$
1,638.2
$
204.7
Gross margin(a)
9.3
%
5.9
%
14.1
%
6.8
%
10.0
%
9.8
%
Adjusted gross margin(b)
9.4
%
5.9
%
14.1
%
6.9
%
10.0
%
9.8
%
(a) Calculated as Gross profit as a
percentage of net sales.
(b) Calculated as Adjusted gross profit as
a percentage of net sales.
Fresh Del Monte Produce Inc.
and Subsidiaries
Reconciliation of EBITDA and
Adjusted EBITDA
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
Year ended
December 27, 2024
December 29, 2023
December 27, 2024
December 29, 2023
Net income (loss) attributable to Fresh
Del Monte Produce Inc.
$
20.4
$
(106.4
)
$
142.2
$
(11.4
)
Interest expense, net
3.1
3.4
17.2
22.7
Income tax provision (benefit)
3.6
(6.8
)
29.1
18.1
Depreciation & amortization
19.3
19.9
78.5
84.8
Share-based compensation expense
2.0
2.3
6.9
9.9
EBITDA
$
48.4
$
(87.6
)
$
273.9
$
124.1
Adjustments:
Other product-related charges (credits)
(1)
0.2
(6.3
)
1.0
3.8
Asset impairment and other charges, net
(2)
2.9
133.8
4.2
143.4
(Gain) on disposal of property, plant and
equipment, net (3)
(16.3
)
(2.1
)
(42.9
)
(40.4
)
Other adjustments (4)
—
—
—
7.6
Adjusted EBITDA
$
35.2
$
37.8
$
236.2
$
238.5
Net sales
$
1,013.2
$
1,008.6
$
4,280.2
$
4,320.7
Net income margin(a)
2.0
%
(10.5
)%
3.3
%
(0.3
)%
(a) Calculated as Net income (loss)
attributable to Fresh Del Monte Produce Inc. as a percentage of net
sales.
EBITDA margin(b)
4.8
%
(8.7
)%
6.4
%
2.9
%
(b) Calculated as EBITDA as a percentage
of net sales.
Adjusted EBITDA margin(c)
3.5
%
3.7
%
5.5
%
5.5
%
(c) Calculated as Adjusted EBITDA as a
percentage of net sales.
(1)
Other product-related charges
(credits) for the quarter ended December 27, 2024, primarily
consisted of $0.2 million of inventory write-offs related to
flooding damage at melon farms in Costa Rica. Other product-related
charges (credits) for the year ended December 27, 2024, also
included $1.2 million of severance charges from the outsourcing of
certain functions within our fresh and value-added operations and
$1.0 million of additional logistic and inventory write-off
expenses incurred as a result of Hurricane Beryl during July 2024,
partially offset by $1.7 million of insurance recoveries, net of
expenses, associated with the flooding of a production facility in
Greece. Other product-related charges (credits) for the quarter
ended December 29, 2023, primarily consisted of $6.9 million of
insurance recoveries and recovery of inventory written-off due to
severe flooding caused by heavy rainstorms in Greece during the
third quarter of 2023, partially offset by inventory write-offs of
$0.6 million as a result of reroutes of shipments impacted by
conflict in the Red Sea. Other product-related charges (credits)
for the year ended December 29, 2023, also included inventory
write-off and clean-up costs of $8.4 million due to Greece flooding
and $1.8 million of inventory write-offs primarily related to the
sale of two distribution centers in Saudi Arabia.
(2)
Asset impairment and other
charges, net for the quarter ended December 27, 2024, primarily
consisted of $1.5 million of impairment charges related to damaged
and unused housing at farms in Costa Rica and a $1.4 million
impairment charge related to goodwill in our vegetable reporting
unit. Asset impairment and other charges, net for year ended
December 27, 2024 also included $1.8 million of legal settlement
charges, $0.5 million of reserves related to a potential liability
arising from our third-party logistics operations (refer to Form
10-K for the year ended December 27, 2024 for further information
on this matter), partially offset by $2.0 million of insurance
recoveries associated with fire damage to a warehouse facility in
South America during the fourth quarter of 2023. Asset impairment
and other charges, net for the quarter ended December 29, 2023,
primarily consisted of impairment charges of $109.6 million related
to customer list and trade name intangible assets and building,
land, and land improvements assets in North America, a $21.6
million impairment charge related to goodwill in our prepared foods
reporting unit and $2.6 million of impairment charges related to
low-yielding non-tropical fruit farms in Chile. Asset impairment
and other charges, net for the year ended December 29, 2023, also
consisted of $3.7 million of impairment charges related to
low-yielding banana farms in the Philippines, $1.8 million of
impairment charges due to low productivity grape vines in South
America, $1.3 million of expenses, net of insurance reimbursements,
incurred in connection with a cybersecurity incident which occurred
during early 2023 and $1.1 million of impairment charges related to
idle land in South America. The cybersecurity incident temporarily
impacted certain of the Company's operational and information
technology systems and resulted in incremental costs primarily
related to the engagement of specialized legal counsel and other
incident response advisors. The Company's critical operational data
and business systems were promptly recovered and accordingly, the
incident did not have a material impact on the Company's financial
results for the year ended December 29, 2023.
(3)
Gain on disposal of property,
plant and equipment, net and subsidiary for the quarter ended
December 27, 2024 primarily related to a $11.3 million gain on the
sale of a Canadian distribution center, $4.3 million related to the
sale of the operating assets of Fresh Leaf Farms, a North American
subsidiary of Mann Packing in our fresh and value-added operations,
and $0.5 million related to the sale of an administrative office in
Central America. Gain on disposal of property, plant and equipment,
net and subsidiary for the year ended December 27, 2024 also
included a $14.7 million gain from the sale of two idle facilities
in South America, a $7.7 million gain from the sale of a warehouse
in South America and a $3.4 million gain from the sale of a
warehouse in Europe. Gain on disposal of property, plant and
equipment, net and subsidiary for the quarter ended December 29,
2023, mainly related to the sale of a carrier vessel. For the year
ended December 29, 2023, gain on disposal of property, plant and
equipment, net and subsidiary also included a $20.5 million gain on
the sale of two distribution centers and related assets in Saudi
Arabia, a $7.0 million gain on the sale of an idle facility in
North America, a $3.8 million gain on the sale of the Company's
plastics business subsidiary in South America, a $2.4 million gain
on the sale of an additional carrier vessel and gains on the sales
of land assets in South and Central America.
(4)
Other adjustments for the year
ended December 29, 2023, primarily related to portions of the gain
on disposal of property, plant, and equipment, net and subsidiary
which were attributable to a minority interest partner, reflected
in net income (loss) attributable to redeemable and noncontrolling
interests.
(5)
Tax effects are calculated in
accordance with ASC 740, Income Taxes, using the same methodology
as the GAAP provision of income taxes. Income tax effects of
non-GAAP adjustments are calculated based on the applicable
statutory tax rate for each jurisdiction in which such adjustments
were incurred, except for those items which are non-taxable for
which the tax provision was calculated at 0%. Certain non-GAAP
adjustments were subject to valuation allowances and therefore were
calculated at 0%.
Conference Call and Webcast Data
Fresh Del Monte will host a conference call and simultaneous
webcast at 11:00 a.m. Eastern Time today to discuss the fourth
quarter and full fiscal year 2024 financial results and to review
the Company’s progress and outlook. The webcast can be accessed on
the Company’s Investor Relations home page at
https://investorrelations.freshdelmonte.com. The call will be
available for re-broadcast on the Company’s website approximately
two hours after the conclusion of the call for a period of one
year.
About Fresh Del Monte Produce Inc.
Fresh Del Monte Produce Inc. is one of the world’s leading
vertically integrated producers, marketers, and distributors of
high-quality fresh and fresh-cut fruit and vegetables, as well as a
leading producer and distributor of prepared food in Europe,
Africa, and the Middle East. Fresh Del Monte Produce Inc. markets
its products worldwide under the DEL MONTE® brand (under license
from Del Monte Foods Corporation II Inc.), a symbol of product
innovation, quality, freshness, and reliability for over 135 years.
The company also markets its products under the MANN® brand and
other related trademarks. Fresh Del Monte Produce Inc. is not
affiliated with certain other Del Monte companies around the world,
including Del Monte Foods, Inc., the U.S. subsidiary of Del Monte
Pacific Limited, Del Monte Canada, or Del Monte Asia Pte. Ltd.
Fresh Del Monte Produce Inc. is the first global marketer of fruits
and vegetables to commit to the “Science Based Targets” initiative.
In 2022, 2023, and 2024 Fresh Del Monte Produce was ranked as one
of "American's Most Trusted Companies" by Newsweek based on an
independent survey rating companies on three different touchpoints,
including customer trust, investor trust, and employee trust. The
company was also named a Humankind 100 Company for two consecutive
years by Humankind Investments, which recognizes companies that
substantially impact areas such as access to food and clean water,
healthcare, and digital services. Fresh Del Monte Produce Inc. is
traded on the NYSE under the symbol FDP.
Forward-looking Information
This press release and the related earnings call contain certain
forward-looking statements regarding the intent, beliefs or current
expectations of the Company. These statements include statements
that are preceded by, followed by or include the words “believes”,
“expects”, “anticipates”, “may” or similar expressions with respect
to various matters. Specifically, this presentation and the
earnings call contain forward-looking statements regarding the
Company’s: focus on high-margin products that align with market
demands and the Company’s business model; ability to solidify its
position as a global leader of pineapples, including with respect
to its pineapple varieties and related innovations; five-year
growth strategy, as well as the Company’s strategy to build its
fresh-cut program into a key profit center; ability to expand and
diversify global sourcing through various partnerships;
expectations regarding the banana segment, as well as the Company’s
ability to penetrate the market; expectations regarding its ability
as well as its timing to achieve compliance with FSMA 204; ongoing
commitment to maximize the full utilization of its biomass, as well
as the intended use and timing of such biofertilizers and the
impact on the Company’s sustainability efforts; the impact of any
potential international business on the business, as well as the
Company’s ability to mitigate potential disruptions; ability to
streamline operations and the impact that may have on its
profitability and future growth; ability to generate value for
shareholders; expectations regarding the Mann Packing business, and
any impact on its profitability and financial condition; ongoing
commitment to future growth, operational excellence and meeting
evolving customer and consumer demands; future weather-related
events on the Company’s business, and its ability to recover
insurance proceeds, if any, to cover any damage or expenses;
expectations for the tax rate; expected SG&A expenses, debt
management, capital expenditures and cash flow in 2025 and expected
segment results for the first six months of 2025. It is important
to note that these forward-looking statements are not guarantees of
future performance and involve risks and uncertainties. The
Company’s actual plans and performance may differ materially from
those in the forward-looking statements as a result of various
factors, including (i) ongoing elevated commodity and supply chain
costs, (ii) the cost and other implications of changes in
regulations applicable to the Company’s business, including
potential domestic and international legislative or regulatory
initiatives; (iii) ability to successfully execute on its strategic
growth plans, including the use of biofertilizers and other
technology, (iv) the impact of foreign currency fluctuations, (v)
the impact of asset impairment or other charges, including those
associated with exit activities, crop or facility damage or
otherwise, (vi) the impact of any disruptions in the Company's
supply chain, (vii) trends and other factors affecting consumer
preferences, including customers’ reception of new product
offerings and innovation, (viii) the impact of severe weather
conditions and natural disasters, such as flooding, hurricanes,
earthquakes, (ix) competitive pressures and ability to realize the
full benefits of the inflation driven price increases implemented,
(x) the impact of claims and adjustments proposed by the IRS or
other foreign taxing authorities in connection with any tax audits
and the Company’s ability to successfully contest such tax claims
and pursue necessary remedies, (xi) damage to the Company’s
reputation or brand names or negative publicity about the Company’s
products, (xii) the Company’s ability to successfully manage the
risks associated with international operations and (xiii) the
adequacy of insurance coverage. In addition, these forward-looking
statements and the information in this presentation and the
earnings call are qualified in their entirety by cautionary
statements and risk factor disclosures contained in the Company’s
Securities and Exchange Commission filings, including the Company’s
most recently filed Annual Report on Form 10-K. All forward-looking
statements in this presentation are based on information available
to us on the date hereof, and we assume no obligation to update
such statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224960898/en/
Investors: Christine
Cannella Vice President, Investor Relations
305-520-8433 Investors@freshdelmonte.com
Media: Claudia Pou
Vice President, Global Head of Corporate Communications
Communications@freshdelmonte.com
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