Fresh Del Monte Produce Inc. Reports Fourth Quarter and Full Fiscal Year 2023 Financial Results
- Gross profit margin for fiscal year 2023 increased to 8.1% from 7.7% in the prior year.
- Company exploring strategic alternatives for Mann Packing operation.
- Long-term debt reduced by $140 million or 26% to $400 million at the end of fiscal year 2023.
- Company increased quarterly dividend by 25% for the second consecutive year.
- None.
Insights
The reported increase in Gross Profit Margin for Fresh Del Monte's fiscal year 2023 to 8.1% from 7.7% in the prior year is a positive indicator of the company's ability to manage costs effectively and improve profitability. The 250 basis points improvement in the Banana Segment Gross Margin suggests a strategic focus on high-margin products. However, the strategic alternatives for Mann Packing operation indicate potential restructuring, which could lead to short-term costs but may improve long-term efficiency.
Reduction of long-term debt by $140 million (26%) is a significant deleveraging, improving the company's financial health and potentially leading to lower interest expenses. The increase in the quarterly dividend by 25% for the second consecutive year reflects confidence in the company's cash flow and a commitment to shareholder returns, which could attract income-focused investors.
The decline in net sales for the fourth quarter and full fiscal year 2023, primarily in the banana and other products and services segments, could be a concern for market analysts. It suggests a potential softening in demand or pricing pressures in these areas. However, the offset by higher net sales in the fresh and value-added product segment driven by higher per unit selling prices indicates a shift in consumer preferences towards premium products.
The operating loss for the fourth quarter, primarily due to a non-cash impairment charge, is noteworthy. While non-cash charges do not affect cash flows, they can impact investor perception of the company's current value and future earnings potential. It's important for investors to consider the underlying reasons for the impairment and the potential for recovery or strategic repositioning.
The report highlights the impact of exchange rate fluctuations, particularly against the Costa Rican colon, which has driven up per unit production costs. This underscores the importance of currency risk management in global agribusiness. The company's use of foreign currency hedges to partially mitigate this risk is a prudent strategy that may stabilize margins in the face of currency volatility.
Additionally, the reduction in inventories as part of working capital management could be a response to the current economic climate, aiming to improve liquidity and reduce holding costs. This strategy may be particularly effective in the agribusiness sector, where product shelf life is a critical factor.
Gross Profit Margin for Fiscal Year 2023 Increased to
Banana Segment Gross Margin for Fiscal Year 2023 Up 250 Basis Points Compared with Prior-Year
Company Exploring Strategic Alternatives for Mann Packing Operation
Long-Term Debt Reduced by
Company Increased Quarterly Dividend by
"We are pleased with many aspects of our full year 2023 results including our strong gross margins and cash flow which enabled us to have strong full year adjusted earnings per share growth, reduce our long-term debt by
Mr. Abu-Ghazaleh added, "During the fall of this year, we conducted a strategic review and assessed our operational priorities of our
Financial highlights for the fourth quarter 2023:
Net sales for the fourth quarter of 2023 was
Gross profit for the fourth quarter of 2023 was
Adjusted gross profit(1) for the fourth quarter 2023 was
Operating loss for the fourth quarter of 2023 was
Adjusted operating income(1) for the fourth quarter of 2023 was
FDP net loss(2) for the fourth quarter of 2023 was
(1) |
Non-GAAP financial measure. Reconciliations and other information required by Regulation G can be found below under "Non-GAAP Measures." |
|
(2) |
"FDP net income/loss" as referenced throughout this release is defined as Net income/loss attributable to Fresh Del Monte Produce Inc. |
Financial highlights for the full fiscal year 2023:
For full fiscal year 2023, net sales was
For full fiscal year 2023, gross profit was
Adjusted gross profit for full fiscal year 2023 was
For the full fiscal year 2023, operating income was
For the full fiscal year 2023, Adjusted operating income was
For the full fiscal year 2023, FDP net loss was
Fourth Quarter and Full Fiscal Year 2023 Business Segment Performance and Selected Financial Data (As reported in business segment data) |
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Fresh Del Monte Produce Inc. and Subsidiaries |
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Business Segment Data |
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( |
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Quarters ended |
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December 29, 2023 |
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December 30, 2022 |
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Segment Data: |
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|
|
|
|
|
|
|
|
|
|
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|
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|
Net Sales |
|
Gross Profit |
|
Gross
|
|
Net Sales |
|
Gross Profit |
|
Gross
|
||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fresh and value-added products |
$ |
582.8 |
|
58 |
% |
|
$ |
22.0 |
|
35 |
% |
|
3.8 |
% |
|
$ |
576.9 |
|
55 |
% |
|
$ |
34.1 |
|
42 |
% |
|
5.9 |
% |
Banana |
|
379.6 |
|
38 |
% |
|
|
37.6 |
|
60 |
% |
|
9.9 |
% |
|
|
403.8 |
|
39 |
% |
|
|
38.1 |
|
47 |
% |
|
9.4 |
% |
Other products and services |
|
46.2 |
|
4 |
% |
|
|
2.9 |
|
5 |
% |
|
6.3 |
% |
|
|
59.3 |
|
6 |
% |
|
|
9.5 |
|
11 |
% |
|
16.0 |
% |
|
$ |
1,008.6 |
|
100 |
% |
|
$ |
62.5 |
|
100 |
% |
|
6.2 |
% |
|
$ |
1,040.0 |
|
100 |
% |
|
$ |
81.7 |
|
100 |
% |
|
7.9 |
% |
|
Years ended |
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|
December 29, 2023 |
|
December 30, 2022 |
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Segment Data: |
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|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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Net Sales |
|
Gross Profit |
|
Gross
|
|
Net Sales |
|
Gross Profit |
|
Gross
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fresh and value-added products |
$ |
2,477.8 |
|
57 |
% |
|
$ |
167.3 |
|
48 |
% |
|
6.8 |
% |
|
$ |
2,581.8 |
|
58 |
% |
|
$ |
183.0 |
|
54 |
% |
|
7.1 |
% |
Banana |
|
1,638.2 |
|
38 |
% |
|
|
163.3 |
|
47 |
% |
|
10.0 |
% |
|
|
1,619.8 |
|
37 |
% |
|
|
120.7 |
|
35 |
% |
|
7.5 |
% |
Other products and services |
|
204.7 |
|
5 |
% |
|
|
20.1 |
|
5 |
% |
|
9.8 |
% |
|
|
240.7 |
|
5 |
% |
|
|
36.5 |
|
11 |
% |
|
15.2 |
% |
|
$ |
4,320.7 |
|
100 |
% |
|
$ |
350.7 |
|
100 |
% |
|
8.1 |
% |
|
$ |
4,442.3 |
|
100 |
% |
|
$ |
340.2 |
|
100 |
% |
|
7.7 |
% |
Fourth Quarter 2023 Business Segment Performance
Fresh and Value-Added Products
Net sales for the fourth quarter of 2023 increased by
Gross profit for the fourth quarter of 2023 was
Banana
Net sales for the fourth quarter of 2023 was
Gross profit for the fourth quarter of 2023 slightly decreased to
Other products and services
Net sales for the fourth quarter of 2023 was
Gross profit for the fourth quarter of 2023 was
Full Fiscal Year 2023 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 2023 were
Gross profit for full fiscal year 2023 was
Banana
Net sales for full fiscal year 2023 were
Gross profit for full fiscal year 2023 increased
Other products and services
Net sales for full fiscal year 2023 were
Gross profit for full fiscal year 2023 was
Cash Flows
Net cash provided by operating activities for full fiscal year 2023 was
Long Term Debt
Long term debt as of the end of 2023 decreased to
Quarterly Cash Dividend
The Company's Board of Directors declared on February 23, 2024, an increase to the quarterly cash dividend to
Fresh Del Monte Produce Inc. and Subsidiaries |
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Consolidated Statements of Operations |
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( |
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Quarter ended |
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Year ended |
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Statement of Operations: |
December 29,
|
|
December 30,
|
|
December 29,
|
|
December 30,
|
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Net sales |
$ |
1,008.6 |
|
|
$ |
1,040.0 |
|
|
$ |
4,320.7 |
|
|
$ |
4,442.3 |
|
Cost of products sold |
|
952.4 |
|
|
|
958.3 |
|
|
|
3,966.2 |
|
|
|
4,102.1 |
|
Other product-related (credits) charges |
|
(6.3 |
) |
|
|
— |
|
|
|
3.8 |
|
|
|
— |
|
Gross profit |
|
62.5 |
|
|
|
81.7 |
|
|
|
350.7 |
|
|
|
340.2 |
|
Selling, general and administrative expenses |
|
44.2 |
|
|
|
47.5 |
|
|
|
186.7 |
|
|
|
186.8 |
|
Gain (loss) on disposal of property, plant and equipment, net |
|
2.1 |
|
|
|
0.3 |
|
|
|
37.9 |
|
|
|
(1.9 |
) |
Asset impairment and other charges (credits), net |
|
133.8 |
|
|
|
3.3 |
|
|
|
143.4 |
|
|
|
(4.8 |
) |
Operating income (loss) |
|
(113.4 |
) |
|
|
31.2 |
|
|
|
58.5 |
|
|
|
156.3 |
|
Interest expense |
|
3.7 |
|
|
|
7.2 |
|
|
|
24.1 |
|
|
|
24.4 |
|
Interest income |
|
0.3 |
|
|
|
0.6 |
|
|
|
1.4 |
|
|
|
0.7 |
|
Other (income) expense, net |
|
(3.5 |
) |
|
|
(0.9 |
) |
|
|
19.3 |
|
|
|
14.8 |
|
Income (loss) before income taxes |
|
(113.3 |
) |
|
|
25.5 |
|
|
|
16.5 |
|
|
|
117.8 |
|
Income tax (benefit) provision |
|
(6.8 |
) |
|
|
6.1 |
|
|
|
18.1 |
|
|
|
20.1 |
|
Net (loss) income |
$ |
(106.5 |
) |
|
$ |
19.4 |
|
|
$ |
(1.6 |
) |
|
$ |
97.7 |
|
Less: Net (loss) income attributable to redeemable and noncontrolling interests |
|
(0.1 |
) |
|
|
1.1 |
|
|
|
9.8 |
|
|
|
(0.9 |
) |
Net (loss) income attributable to Fresh Del Monte Produce Inc. |
$ |
(106.4 |
) |
|
$ |
18.3 |
|
|
$ |
(11.4 |
) |
|
$ |
98.6 |
|
Earnings per share(1): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(2.22 |
) |
|
$ |
0.38 |
|
|
$ |
(0.24 |
) |
|
$ |
2.06 |
|
Diluted |
$ |
(2.22 |
) |
|
$ |
0.38 |
|
|
$ |
(0.24 |
) |
|
$ |
2.06 |
|
Dividends declared per ordinary share |
$ |
0.20 |
|
|
$ |
0.15 |
|
|
$ |
0.75 |
|
|
$ |
0.60 |
|
Weighted average number of ordinary shares: |
|
|
|
|
|
|
|
||||||||
Basic |
|
47,868,948 |
|
|
|
47,837,743 |
|
|
|
47,979,143 |
|
|
|
47,790,920 |
|
Diluted |
|
47,868,948 |
|
|
|
48,046,374 |
|
|
|
47,979,143 |
|
|
|
47,943,464 |
|
(1) Earnings per share ("EPS") is calculated based on Net (loss) income attributable to Fresh Del Monte Produce Inc. |
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Fresh Del Monte Produce Inc. and Subsidiaries |
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Consolidated Balance Sheets |
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( |
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|
||||
|
December 29,
|
|
December 30,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
33.8 |
|
|
$ |
17.2 |
|
Trade accounts receivable, net |
|
387.0 |
|
|
|
373.5 |
|
Other accounts receivable, net |
|
95.1 |
|
|
|
91.0 |
|
Inventories, net |
|
599.9 |
|
|
|
669.0 |
|
Assets held for sale |
|
4.5 |
|
|
|
67.3 |
|
Prepaid expenses and other current assets |
|
24.0 |
|
|
|
23.4 |
|
Total current assets |
|
1,144.3 |
|
|
|
1,241.4 |
|
|
|
|
|
||||
Investment in and advances to unconsolidated companies |
|
22.2 |
|
|
|
18.0 |
|
Property, plant and equipment, net |
|
1,256.4 |
|
|
|
1,309.5 |
|
Operating lease right-of-use assets |
|
213.8 |
|
|
|
213.8 |
|
Goodwill |
|
401.9 |
|
|
|
422.9 |
|
Intangible assets, net |
|
33.3 |
|
|
|
135.0 |
|
Deferred income taxes |
|
51.5 |
|
|
|
47.4 |
|
Other noncurrent assets |
|
60.7 |
|
|
|
70.9 |
|
Total assets |
$ |
3,184.1 |
|
|
$ |
3,458.9 |
|
|
|
|
|
||||
Liabilities and shareholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
479.0 |
|
|
$ |
549.9 |
|
Current maturities of debt and finance leases |
|
1.4 |
|
|
|
1.3 |
|
Current maturities of operating leases |
|
48.6 |
|
|
|
41.6 |
|
Income taxes and other taxes payable |
|
11.6 |
|
|
|
14.2 |
|
Total current liabilities |
|
540.6 |
|
|
|
607.0 |
|
|
|
|
|
||||
Long-term debt and finance leases |
|
406.1 |
|
|
|
547.1 |
|
Operating leases, less current maturities |
|
142.1 |
|
|
|
147.3 |
|
Retirement benefits |
|
82.3 |
|
|
|
82.4 |
|
Other noncurrent liabilities |
|
27.6 |
|
|
|
28.5 |
|
Deferred income taxes |
|
72.7 |
|
|
|
71.6 |
|
Total liabilities |
|
1,271.4 |
|
|
|
1,483.9 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable noncontrolling interest |
|
— |
|
|
|
49.4 |
|
Shareholders' equity: |
|
|
|
||||
Preferred shares |
|
— |
|
|
|
— |
|
Ordinary shares |
|
0.5 |
|
|
|
0.5 |
|
Paid-in capital |
|
597.7 |
|
|
|
548.1 |
|
Retained earnings |
|
1,341.4 |
|
|
|
1,397.6 |
|
Accumulated other comprehensive loss |
|
(43.3 |
) |
|
|
(41.5 |
) |
Total Fresh Del Monte Produce Inc. shareholders' equity |
|
1,896.3 |
|
|
|
1,904.7 |
|
Noncontrolling interests |
|
16.4 |
|
|
|
20.9 |
|
Total shareholders' equity |
|
1,912.7 |
|
|
|
1,925.6 |
|
Total liabilities, redeemable noncontrolling interest and shareholders' equity |
$ |
3,184.1 |
|
|
$ |
3,458.9 |
|
|
|
|
|
||||
Fresh Del Monte Produce Inc. and Subsidiaries |
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Consolidated Statements of Cash Flows |
|||||||
( |
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|
Year ended |
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|
December 29,
|
|
December 30,
|
||||
Operating activities: |
|
|
|
||||
Net (loss) income |
$ |
(1.6 |
) |
|
$ |
97.7 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
84.8 |
|
|
|
92.5 |
|
Amortization of debt issuance costs |
|
0.5 |
|
|
|
0.6 |
|
Share-based compensation expense |
|
9.9 |
|
|
|
6.9 |
|
Asset impairments |
|
141.3 |
|
|
|
3.5 |
|
Change in uncertain tax positions |
|
1.5 |
|
|
|
1.7 |
|
(Gain) loss on disposal of property, plant and equipment, net |
|
(37.9 |
) |
|
|
1.9 |
|
Deferred income taxes |
|
(3.8 |
) |
|
|
2.5 |
|
Adjustment of Kunia Well Site liability |
|
— |
|
|
|
(9.9 |
) |
Gain on release of cumulative translation adjustment |
|
(2.4 |
) |
|
|
— |
|
Other, net |
|
(1.3 |
) |
|
|
1.6 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
|
(19.3 |
) |
|
|
(37.4 |
) |
Inventories |
|
64.7 |
|
|
|
(72.1 |
) |
Prepaid expenses and other current assets |
|
1.7 |
|
|
|
(0.2 |
) |
Accounts payable and accrued expenses |
|
(64.1 |
) |
|
|
(17.8 |
) |
Other noncurrent assets and liabilities |
|
3.9 |
|
|
|
(9.7 |
) |
Net cash provided by operating activities |
|
177.9 |
|
|
|
61.8 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Capital expenditures |
|
(57.7 |
) |
|
|
(48.1 |
) |
Investments in unconsolidated companies |
|
(5.3 |
) |
|
|
(9.7 |
) |
Proceeds from sales of property, plant and equipment and subsidiary |
|
119.9 |
|
|
|
8.7 |
|
Cash paid from derivatives not designated as hedges |
|
— |
|
|
|
(0.2 |
) |
Other investing activities |
|
(0.5 |
) |
|
|
0.2 |
|
Net cash provided by (used in) investing activities |
|
56.4 |
|
|
|
(49.1 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Proceeds from debt |
|
590.5 |
|
|
|
1,066.3 |
|
Payments on debt |
|
(730.3 |
) |
|
|
(1,045.6 |
) |
Distributions to noncontrolling interests |
|
(17.9 |
) |
|
|
(0.9 |
) |
Purchase of redeemable noncontrolling interest |
|
(5.2 |
) |
|
|
— |
|
Share-based awards settled in cash for taxes |
|
(0.8 |
) |
|
|
(1.6 |
) |
Dividends paid |
|
(35.9 |
) |
|
|
(28.7 |
) |
Repurchase and retirement of ordinary shares |
|
(11.8 |
) |
|
|
— |
|
Other financing activities |
|
(2.1 |
) |
|
|
(1.5 |
) |
Net cash used in financing activities |
|
(213.5 |
) |
|
|
(12.0 |
) |
Effect of exchange rate changes on cash |
|
(4.2 |
) |
|
|
0.4 |
|
Net increase in cash and cash equivalents |
|
16.6 |
|
|
|
1.1 |
|
Cash and cash equivalents, beginning |
|
17.2 |
|
|
|
16.1 |
|
Cash and cash equivalents, ending |
$ |
33.8 |
|
|
$ |
17.2 |
|
Non-GAAP Measures
The Company's results are determined in accordance with
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 |
|||||||||||||||||||||||||||||
|
( |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Quarter ended |
|||||||||||||||||||||||||||||
|
December 29, 2023 |
|
December 30, 2022 |
|||||||||||||||||||||||||||
|
Gross
|
|
Operating
|
|
Net (loss)
|
|
Diluted
|
|
Gross
|
|
Operating
|
|
Net (loss)
|
|
Diluted
|
|||||||||||||||
As reported |
$ |
62.5 |
|
|
$ |
(113.4 |
) |
|
$ |
(106.4 |
) |
|
$ |
(2.22 |
) |
|
$ |
81.7 |
|
$ |
31.2 |
|
|
$ |
18.3 |
|
|
$ |
0.38 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other product-related (credits) charges (1) |
|
(6.3 |
) |
|
|
(6.3 |
) |
|
|
(6.3 |
) |
|
|
(0.13 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Asset impairment and other charges (credits), net (2) |
|
— |
|
|
|
133.8 |
|
|
|
133.8 |
|
|
|
2.79 |
|
|
|
— |
|
|
3.3 |
|
|
|
3.3 |
|
|
|
0.07 |
|
(Gain) on disposal of property, plant and equipment, net (3) |
|
— |
|
|
|
(2.1 |
) |
|
|
(2.1 |
) |
|
|
(0.04 |
) |
|
|
— |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
— |
|
Other adjustments (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Tax effects of all adjustments and other tax-related items (5) |
|
— |
|
|
|
— |
|
|
|
(7.2 |
) |
|
|
(0.15 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
As adjusted |
$ |
56.2 |
|
|
$ |
12.0 |
|
|
$ |
11.8 |
|
|
$ |
0.25 |
|
|
$ |
81.7 |
|
$ |
34.2 |
|
|
$ |
21.5 |
|
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Year ended |
|||||||||||||||||||||||||||||
|
December 29, 2023 |
|
December 30, 2022 |
|||||||||||||||||||||||||||
|
Gross
|
|
Operating
|
|
Net (loss)
|
|
Diluted
|
|
Gross
|
|
Operating
|
|
Net (loss)
|
|
Diluted
|
|||||||||||||||
As reported |
$ |
350.7 |
|
|
$ |
58.5 |
|
|
$ |
(11.4 |
) |
|
$ |
(0.24 |
) |
|
$ |
340.2 |
|
$ |
156.3 |
|
|
$ |
98.6 |
|
|
$ |
2.06 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other product-related (credits) charges (1) |
|
3.8 |
|
|
|
3.8 |
|
|
|
3.8 |
|
|
|
0.08 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Asset impairment and other charges (credits), net (2) |
|
— |
|
|
|
143.4 |
|
|
|
143.4 |
|
|
|
2.99 |
|
|
|
— |
|
|
(4.8 |
) |
|
|
(4.8 |
) |
|
|
(0.10 |
) |
(Gain) on disposal of property, plant and equipment, net (3) |
|
— |
|
|
|
(40.4 |
) |
|
|
(40.4 |
) |
|
|
(0.84 |
) |
|
|
— |
|
|
(2.3 |
) |
|
|
(2.3 |
) |
|
|
(0.05 |
) |
Other adjustments (4) |
|
— |
|
|
|
— |
|
|
|
7.6 |
|
|
|
0.16 |
|
|
|
— |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
Tax effects of all adjustments and other tax-related items (5) |
|
— |
|
|
|
— |
|
|
|
(1.3 |
) |
|
|
(0.03 |
) |
|
|
— |
|
|
— |
|
|
|
2.6 |
|
|
|
0.06 |
|
As adjusted |
$ |
354.5 |
|
|
$ |
165.3 |
|
|
$ |
101.7 |
|
|
$ |
2.12 |
|
|
$ |
340.2 |
|
$ |
149.2 |
|
|
$ |
94.3 |
|
|
$ |
1.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Fresh Del Monte Produce Inc. and Subsidiaries |
||||||||||||||||||||||
|
Segment Gross Profit Non-GAAP Reconciliation |
||||||||||||||||||||||
|
( |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Quarter ended |
||||||||||||||||||||||
|
December 29, 2023 |
|
December 30, 2022 |
||||||||||||||||||||
|
Fresh and
|
|
Banana |
|
Other
|
|
Fresh and
|
|
Banana |
|
Other
|
||||||||||||
Gross profit (as reported) |
$ |
22.0 |
|
|
$ |
37.6 |
|
|
$ |
2.9 |
|
|
$ |
34.1 |
|
|
$ |
38.1 |
|
|
$ |
9.5 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other product-related (credits) charges (1) |
|
(6.3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted gross profit |
$ |
15.7 |
|
|
$ |
37.6 |
|
|
$ |
2.9 |
|
|
$ |
34.1 |
|
|
$ |
38.1 |
|
|
$ |
9.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Sales |
$ |
582.8 |
|
|
$ |
379.6 |
|
|
$ |
46.2 |
|
|
$ |
576.9 |
|
|
$ |
403.8 |
|
|
$ |
59.3 |
|
Gross margin(a) |
|
3.8 |
% |
|
|
9.9 |
% |
|
|
6.3 |
% |
|
|
5.9 |
% |
|
|
9.4 |
% |
|
|
16.0 |
% |
Adjusted gross margin(b) |
|
2.7 |
% |
|
|
9.9 |
% |
|
|
6.3 |
% |
|
|
5.9 |
% |
|
|
9.4 |
% |
|
|
16.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Year ended |
||||||||||||||||||||||
|
December 29, 2023 |
|
December 30, 2022 |
||||||||||||||||||||
|
Fresh and
|
|
Banana |
|
Other
|
|
Fresh and
|
|
Banana |
|
Other
services |
||||||||||||
Gross profit (as reported) |
$ |
167.3 |
|
|
$ |
163.3 |
|
|
$ |
20.1 |
|
|
$ |
183.0 |
|
|
$ |
120.7 |
|
|
$ |
36.5 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other product-related charges (1) |
|
3.7 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted gross profit |
$ |
171.0 |
|
|
$ |
163.4 |
|
|
$ |
20.1 |
|
|
$ |
183.0 |
|
|
$ |
120.7 |
|
|
$ |
36.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Sales |
$ |
2,477.8 |
|
|
$ |
1,638.2 |
|
|
$ |
204.7 |
|
|
$ |
2,581.8 |
|
|
$ |
1,619.8 |
|
|
$ |
240.7 |
|
Gross margin(a) |
|
6.8 |
% |
|
|
10.0 |
% |
|
|
9.8 |
% |
|
|
7.1 |
% |
|
|
7.5 |
% |
|
|
15.2 |
% |
Adjusted gross margin(b) |
|
6.9 |
% |
|
|
10.0 |
% |
|
|
9.8 |
% |
|
|
7.1 |
% |
|
|
7.5 |
% |
|
|
15.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(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 |
||||||||||||||
|
( |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Quarter ended |
|
Year ended |
||||||||||||
|
December 29,
|
|
December 30,
|
|
December 29,
|
|
December 30,
|
||||||||
Net (loss) income attributable to Fresh Del Monte Produce Inc. |
$ |
(106.4 |
) |
|
$ |
18.3 |
|
|
$ |
(11.4 |
) |
|
$ |
98.6 |
|
Interest expense, net |
|
3.4 |
|
|
|
6.6 |
|
|
|
22.7 |
|
|
|
23.7 |
|
Income tax (benefit) provision |
|
(6.8 |
) |
|
|
6.1 |
|
|
|
18.1 |
|
|
|
20.1 |
|
Depreciation & amortization |
|
19.9 |
|
|
|
22.3 |
|
|
|
84.8 |
|
|
|
92.5 |
|
Share-based compensation expense |
|
2.3 |
|
|
|
2.0 |
|
|
|
9.9 |
|
|
|
6.9 |
|
EBITDA |
$ |
(87.6 |
) |
|
$ |
55.3 |
|
|
$ |
124.1 |
|
|
$ |
241.8 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Other product-related (credits) charges (1) |
|
(6.3 |
) |
|
|
— |
|
|
|
3.8 |
|
|
|
— |
|
Asset impairment and other charges (credits), net (2) |
|
133.8 |
|
|
|
3.3 |
|
|
|
143.4 |
|
|
|
(4.8 |
) |
(Gain) on disposal of property, plant and equipment, net (3) |
|
(2.1 |
) |
|
|
(0.3 |
) |
|
|
(40.4 |
) |
|
|
(2.3 |
) |
Other adjustments (4) |
|
— |
|
|
|
0.2 |
|
|
|
7.6 |
|
|
|
0.2 |
|
Adjusted EBITDA |
$ |
37.8 |
|
|
$ |
58.5 |
|
|
$ |
238.5 |
|
|
$ |
234.9 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,008.6 |
|
|
$ |
1,040.0 |
|
|
$ |
4,320.7 |
|
|
$ |
4,442.3 |
|
|
|
|
|
|
|
|
|
||||||||
Net income margin(a) |
|
(10.5 |
) % |
|
|
1.8 |
% |
|
|
(0.3 |
) % |
|
|
2.2 |
% |
(a) Calculated as Net (loss) income attributable to Fresh Del Monte Produce Inc. as a percentage of net sales. |
|
|
|
|
|
|
|
||||||||
EBITDA margin(b) |
|
(8.7 |
) % |
|
|
5.3 |
% |
|
|
2.9 |
% |
|
|
5.4 |
% |
(b) Calculated as EBITDA as a percentage of net sales. |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA margin(c) |
|
3.7 |
% |
|
|
5.6 |
% |
|
|
5.5 |
% |
|
|
5.3 |
% |
(c) Calculated as Adjusted EBITDA as a percentage of net sales. |
|
|
|
|
|
|
|
||||||||
| (1) |
Other product-related (credits) charges for the quarter ended December 29, 2023, primarily consisted of |
|
|
||
| (2) |
Asset impairment and other charges (credits), net for the quarter ended December 29, 2023, primarily consisted of impairment charges of |
|
|
||
| (3) |
Gain on disposal of property, plant and equipment, net 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 also included a |
|
|
||
| (4) | Other adjustments for the quarters and years ended December 29, 2023 and December 30, 2022, primarily related to portions of the gain on disposal of property, plant, and equipment, net which were attributable to a minority interest partner, reflected in net (loss) income 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 |
Conference Call and Webcast Data
Fresh Del Monte will host a conference call and simultaneous webcast at 10:00 a.m. Eastern Time today to discuss the fourth quarter and full fiscal year 2023 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
Forward-looking Information
This press release and the related earnings call contain certain forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect 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,” “will,” “outlook,” “plan” or similar expressions with respect to various matters. Specifically, this press release and the earnings call contain forward-looking statements regarding the Company’s plans and expectations for future performance, including the Company’s (a) intent to focus on continuous innovation, commercializing its assets through strategic partnerships, investing in organic growth, increasing the mix of high margin products and working toward a circular economy; (b) ability to return value to its shareholders; (c) ability to control costs in 2024; (d) plans to expand its pineapple program and expected benefits of expansion; (e) expected growth opportunities, including biofertilizers; (f) expectations for 2024 regarding capital expenditures, product margins, volumes and sales prices in its banana segment, and ocean freight costs; and (g) free cash flow projections. 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, including costs of raw materials, packaging materials, labor, energy, fuel and transportation, (ii) the Company’s ability to successfully execute on its strategic growth plans, including the use of AI and other technology to effectively manage costs and pricing, (iii) the impact of foreign currency fluctuations, including the effectiveness of our hedging activities, (iv) the impact of asset impairment or other charges, including those associated with exit activities, crop or facility damage or otherwise, (v) the impact of ongoing conflict in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226820690/en/
Monica Vicente
Senior Vice President, Chief Financial Officer
305-520-8433
Source: Fresh Del Monte Produce Inc.
FAQ
What is the gross profit margin increase for Fresh Del Monte Produce Inc. in fiscal year 2023?
What strategic alternatives is Fresh Del Monte Produce Inc. exploring?
How much was the reduction in long-term debt for Fresh Del Monte Produce Inc. in fiscal year 2023?
By what percentage did Fresh Del Monte Produce Inc. increase its quarterly dividend in fiscal year 2023?
