Fresh Del Monte Produce Inc. Announces Fiscal 2024 Second Quarter Financial Results
Fresh Del Monte Produce Inc. today released its financial results for the second quarter ending June 28, 2024.
“We are encouraged by the positive outcomes of our growth strategy and company focus, particularly in the fresh and value-added products segment, where we saw significant margin improvement this quarter,” said Mohammad Abu-Ghazaleh, Chairman and CEO of Fresh Del Monte. “Pineapple, fresh-cut fruit, avocados, and value-added products remain core strengths, with consumers valuing our innovation, convenience, and taste.”
Financial Highlights for Q2 2024:
- Net Sales: Totaled $1,139.7 million, a decrease from $1,180.5 million in the same period last year. This decline was mainly due to reduced banana sales, driven by lower volumes and selling prices. This was partially countered by increased sales in the fresh and value-added products segment, thanks to higher selling prices.
- Gross Profit: Reported at $113.2 million, down from $116.8 million a year ago. The drop was attributed to lower net sales, increased production and procurement costs—impacted by weather-related events in Central America and the Philippines, and exchange rate fluctuations. This was somewhat offset by reduced ocean freight costs and higher selling prices in the fresh and value-added products segment. The gross margin stood at 9.9%, consistent with the prior year. Excluding product-related charges, Adjusted Gross Profit was $114.4 million, compared to $116.8 million previously.
- Operating Income: Was $68.2 million, compared to $72.1 million in the prior-year period. This decline was largely due to lower gross profit and a higher gain on asset sales last year. However, it was partially offset by asset impairment and other charges last year versus a credit for insurance proceeds this year. Adjusted Operating Income was $64.5 million, compared to $67.9 million previously. Adjusted Operating Income excludes $1.2 million in product-related charges, a $3.4 million gain from the sale of a European warehouse, and $2.0 million in insurance recoveries from a South American facility fire. Last year’s Adjusted Operating Income excluded an $8.8 million gain from the sale of plastics and other assets, and $4.6 million in asset impairments and other charges.
- Other Income (Expense), Net: Reported a gain of $2.3 million, in contrast to a loss of $6.4 million last year. This improvement was primarily due to an unrealized gain on an unconsolidated company in the food and nutrition sector and foreign currency gains this quarter, compared to losses last year.
- Net Income: For the second quarter was $53.6 million, up from $47.7 million a year ago. Adjusted Net Income was $50.9 million, compared to $46.2 million previously. Adjusted Net Income excludes the mentioned adjustments and a $1.0 million tax effect this year, compared to a $2.7 million tax effect in the prior-year period.
