Fresh Del Monte Produce Inc. (NYSE: FDP), a global leader in fresh produce, announced its financial results for the first quarter ended March 28, 2025, showcasing a strong start to the year. The company experienced continued momentum across key product segments, particularly in fresh and value-added categories, highlighting strategic progress and operational resilience.
“We kicked off 2025 with continued momentum, building on the progress we made last year,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “In the first quarter, demand once again exceeded supply in our fresh and value-added products segment, highlighting the strength of our position in this key category. Our year-over-year improvement in gross profit—up 12%—and the increase in gross margin to 8.4% from 7.4% last year underscores the effectiveness of our strategic focus on value-added innovation and operational efficiency.”
Abu-Ghazaleh further emphasized the company’s forward-looking priorities, stating: “As we look ahead, we remain committed to generating long-term shareholder value through continuous innovation, sustainability initiatives, and excellence in execution across our global operations.”
First Quarter 2025 Financial Overview
Net Sales:
Fresh Del Monte reported net sales of $1.10 billion for the first quarter of 2025, a slight decline from $1.11 billion during the same period in 2024. The decrease was mainly attributable to lower sales in the banana segment, driven by reduced volume and adverse foreign exchange impacts. However, this decline was partially offset by increased sales in the fresh and value-added products segment, which benefited from higher average selling prices.
Gross Profit and Margin:
Gross profit for the quarter reached $92.2 million, marking a notable increase from $82.3 million in Q1 2024. This growth was primarily due to strong performance in the fresh and value-added products segment. While higher costs for production, procurement, and distribution partially offset gains, the company’s overall gross margin still improved to 8.4%, up from 7.4% a year ago.
Adjusted Gross Profit:
On an adjusted basis, gross profit remained at $92.2 million, compared to an adjusted $81.3 million in the prior-year period. The 2024 figure included a $1.0 million credit related to an insurance recovery, whereas no similar credits were recorded in Q1 2025.
Operating Performance
Operating Income:
The company’s operating income came in at $44.9 million for the quarter, slightly above the $44.1 million reported in the first quarter of 2024. This increase reflects higher gross profits, although it was partially offset by a reduced gain on the disposal of property, plant, and equipment.
Adjusted Operating Income:
Adjusted operating income rose to $44.1 million from $30.6 million in the prior year. This metric excludes a $0.8 million gain from the sale of idle land in Guatemala. The Q1 2024 adjusted result excluded the aforementioned product-related credits, $2.3 million in asset impairment charges, and a $14.8 million gain from asset sales.
Other Expenses:
Other expenses, net, dropped significantly to $2.8 million from $7.7 million in the same quarter last year. This improvement was primarily due to a reduction in foreign currency losses, reflecting more favorable exchange conditions.
Net Income:
Fresh Del Monte reported net income attributable to the company of $31.1 million, up from $26.1 million in Q1 2024. On an adjusted basis, net income surged to $30.3 million, compared to $15.8 million a year earlier. The adjustments primarily relate to non-recurring gains and charges.
Segment Performance
Fresh and Value-Added Products
Net sales for this segment climbed to $683.2 million, up from $676.8 million in the prior-year quarter. The growth was fueled by increased unit pricing in avocados and higher volume and pricing for fresh-cut fruit in North America, which continues to see strong consumer demand. However, this growth was tempered by reduced sales of fresh-cut vegetables and other vegetable products, following strategic operational cutbacks in Q4 2024, including the sale of certain Fresh Leaf Farms assets.
Gross profit in this segment increased significantly to $69.3 million from $55.9 million, thanks to improved pricing for pineapples and melons. Despite rising production and distribution costs, gross margin rose to 10.1%, compared to 8.3% a year earlier.
Banana Segment
The banana segment reported net sales of $363.8 million, down from $379.5 million in Q1 2024. This decline was driven by reduced sales volumes in Asia, where weaker demand and excess industry supply affected pricing, and in North America, where weather-related logistics issues disrupted supply. Foreign exchange impacts, particularly the depreciation of the Euro and Korean won, also weighed on results. However, higher prices in North America provided some offset.
Gross profit for the segment fell to $16.8 million from $21.8 million, while gross margin declined to 4.6% from 5.7%, reflecting both the sales drop and higher procurement costs.
Other Products and Services
This category remained stable, with net sales holding steady at $51.4 million. Gross profit increased to $6.1 million from $4.6 million, primarily due to better pricing in the poultry and meats business. Gross margin in this segment improved to 11.9%, up from 8.9%.
Cash Flow and Balance Sheet
Fresh Del Monte’s operations generated $46.1 million in cash during Q1 2025, more than double the $18.7 million recorded in the first quarter of the prior year. This improvement was mainly the result of favorable working capital movements, including higher payables, reduced receivables, and increased net income. These gains were somewhat offset by elevated inventory levels.
Long-term debt was reduced to $233.0 million as of March 28, 2025, down from $244.0 million at the end of fiscal 2024, reflecting the company’s focus on strengthening its balance sheet.
Capital Allocation
Dividend Declaration:
The Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on June 6, 2025, to shareholders of record as of May 14, 2025. This continued dividend reflects Fresh Del Monte’s commitment to returning value to shareholders.
Share Repurchase Program:
During the quarter, the company repurchased approximately 253,850 shares of its common stock at an average price of $29.97, totaling $7.6 million. This activity was part of the ongoing $150 million share repurchase program, with $142.4 million remaining authorized as of quarter-end.
