Fresh Del Monte Produce Inc. Reports Third Quarter Earnings for Fiscal 2024
Fresh Del Monte Produce reported strong Q3 2024 financial results with net sales of $1,019.5 million, up from $1,003.1 million in the prior year. Gross margin increased to 9.2% from 7.4%, driven by higher sales volume and prices in fresh and value-added products. Net income rose significantly to $42.1 million compared to $8.4 million in Q3 2023. The company's fresh and value-added products segment saw improved performance with higher sales of avocados and pineapples, while the banana segment experienced decreased sales due to competitive pressures. Long-term debt decreased by 33% to $269.6 million, and the company declared a quarterly dividend of $0.25 per share.
Fresh Del Monte Produce ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con vendite nette di 1.019,5 milioni di dollari, in aumento rispetto ai 1.003,1 milioni di dollari dell'anno precedente. Il margine di profitto lordo è aumentato al 9,2% rispetto al 7,4%, grazie a un aumento del volume delle vendite e dei prezzi nei prodotti freschi e a valore aggiunto. Il reddito netto è aumentato significativamente a 42,1 milioni di dollari rispetto agli 8,4 milioni di dollari del terzo trimestre del 2023. Il segmento dei prodotti freschi e a valore aggiunto dell'azienda ha mostrato prestazioni migliorate, con vendite più elevate di avocado e ananas, mentre il segmento delle banane ha subito una diminuzione delle vendite a causa della pressione competitiva. Il debito a lungo termine è diminuito del 33% a 269,6 milioni di dollari e l'azienda ha dichiarato un dividendo trimestrale di 0,25 dollari per azione.
Fresh Del Monte Produce reportó sólidos resultados financieros en el tercer trimestre de 2024, con ventas netas de 1,019.5 millones de dólares, un aumento respecto a los 1,003.1 millones de dólares del año anterior. El margen bruto aumentó al 9.2% desde el 7.4%, impulsado por un mayor volumen de ventas y precios en productos frescos y de valor agregado. La utilidad neta aumentó significativamente a 42.1 millones de dólares en comparación con 8.4 millones de dólares en el tercer trimestre de 2023. El segmento de productos frescos y de valor agregado de la compañía vio un rendimiento mejorado con mayores ventas de aguacates y piñas, mientras que el segmento de plátanos experimentó una disminución en las ventas debido a presiones competitivas. La deuda a largo plazo disminuyó en un 33% a 269.6 millones de dólares y la compañía declaró un dividendo trimestral de 0.25 dólares por acción.
프레시 델몬트 프로듀스는 2024년 3분기 재무 결과에서 10억 1,950만 달러의 순매출을 기록하며, 작년의 10억 31만 달러에서 증가했다고 발표했습니다. 총 마진은 7.4%에서 9.2%로 증가했으며, 이는 신선한 제품과 부가가치 제품의 판매 증가 및 가격 상승에 기인합니다. 순이익은 2023년 3분기의 840만 달러와 비교하여 4,210만 달러로 크게 증가했습니다. 회사의 신선한 제품 및 부가가치 제품 부문은 아보카도와 파인애플의 판매 증가로 성과가 개선되었으며, 바나나 부문은 경쟁 압력으로 인해 판매가 감소했습니다. 장기부채는 33% 감소하여 2억 6,960만 달러에 이르렀으며, 회사는 주당 0.25달러의 분기 배당금을 선언했습니다.
Fresh Del Monte Produce a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des ventes nettes de 1,019.5 millions de dollars, en hausse par rapport à 1,003.1 millions de dollars l'année précédente. La marge brute a augmenté à 9,2% contre 7,4%, grâce à une augmentation du volume des ventes et des prix des produits frais et à valeur ajoutée. Le revenu net a considérablement augmenté à 42,1 millions de dollars par rapport à 8,4 millions de dollars au troisième trimestre 2023. Le segment des produits frais et à valeur ajoutée de l'entreprise a connu une amélioration de ses performances avec des ventes plus élevées d'avocats et d'ananas, tandis que le segment des bananes a connu une baisse des ventes en raison de la pression concurrentielle. La dette à long terme a diminué de 33% pour atteindre 269,6 millions de dollars, et l'entreprise a déclaré un dividende trimestriel de 0,25 dollar par action.
Fresh Del Monte Produce meldete starke Finanzresultate für das dritte Quartal 2024 mit einem Nettoumsatz von 1.019,5 Millionen Dollar, gegenüber 1.003,1 Millionen Dollar im Vorjahr. Die Bruttomarge stieg von 7,4% auf 9,2%, was auf ein höheres Verkaufsvolumen und steigende Preise bei frischen und wertschöpfenden Produkten zurückzuführen ist. Der Nettogewinn stieg deutlich auf 42,1 Millionen Dollar im Vergleich zu 8,4 Millionen Dollar im dritten Quartal 2023. Der Bereich der frischen und wertschöpfenden Produkte des Unternehmens zeigte eine verbesserte Leistung mit höheren Verkaufszahlen von Avocados und Ananas, während der Bananenbereich aufgrund des Wettbewerbsdrucks einen Rückgang bei den Verkäufen verzeichnete. Die langfristigen Schulden sanken um 33% auf 269,6 Millionen Dollar, und das Unternehmen überwand eine vierteljährliche Dividende von 0,25 Dollar pro Aktie.
- Net sales increased to $1,019.5 million from $1,003.1 million YoY
- Gross margin improved to 9.2% from 7.4% YoY
- Net income surged to $42.1 million from $8.4 million YoY
- Long-term debt reduced by 33% to $269.6 million
- Higher sales volume and prices in avocado and pineapple products
- Decreased banana segment sales due to competitive market pressures
- Lower banana gross margin at 6.2% compared to 8.3% YoY
- Higher per unit production costs impacting profitability
- Negative impact from stronger Costa Rican colon exchange rates
Insights
The Q3 2024 results show significant financial improvements with net sales increasing to
The balance sheet shows impressive deleveraging with long-term debt reduced by
The fresh and value-added segment shows robust growth with sales up to
The strategic decision on Mann Packing and focus on profitable product lines demonstrates disciplined portfolio management. Weather events like Hurricane Beryl caused some disruptions, but the impact was relatively contained at
Gross Margin Increased By 180 Basis Points Compared to the Prior-Year Period: Driven by Fresh and Value-Added Products Segment
Strategic Decision on Mann Packing Finalized to Enhance Profitability and Position for Growth
"We are pleased to report strong performance in the third quarter. Our strategic focus on high-margin, value-added products continues to deliver positive results, demonstrating the strength of our product innovations and our commitment to driving long-term profitability and value for our shareholders,” said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh. "As committed, we have announced our decision on Mann Packing following our strategic review—a defining step that we believe will boost profitability, reinforce resilience, and deliver sustained growth.”
Financial highlights for the third quarter 2024:
Net sales for the third quarter of 2024 were
Gross profit for the third quarter of 2024 was
Gross profit for the third quarter of 2024 included
Operating income for the third quarter of 2024 was
Operating income for the third quarter of 2024 included asset impairment and other charges, net, of
Other (income) expense, net, for the third quarter of 2024 was a gain of
FDP net income(2) for the third quarter of 2024 was
Third Quarter 2024 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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Quarter ended |
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September 27, 2024 |
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September 29, 2023 |
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Segment Data: |
Net Sales |
|
Gross Profit |
|
Gross Margin |
|
Net Sales |
|
Gross Profit |
|
Gross Margin |
||||||||||||||||||
Fresh and value-added products |
$ |
623.7 |
|
61 |
% |
|
$ |
63.3 |
|
67 |
% |
|
10.1 |
% |
|
$ |
574.0 |
|
57 |
% |
|
$ |
36.2 |
|
49 |
% |
|
6.3 |
% |
Banana |
|
345.3 |
|
34 |
% |
|
|
21.3 |
|
23 |
% |
|
6.2 |
% |
|
|
384.7 |
|
38 |
% |
|
|
31.9 |
|
43 |
% |
|
8.3 |
% |
Other products and services |
|
50.5 |
|
5 |
% |
|
|
9.2 |
|
10 |
% |
|
18.2 |
% |
|
|
44.4 |
|
5 |
% |
|
|
6.3 |
|
8 |
% |
|
14.2 |
% |
|
$ |
1,019.5 |
|
100 |
% |
|
$ |
93.8 |
|
100 |
% |
|
9.2 |
% |
|
$ |
1,003.1 |
|
100 |
% |
|
$ |
74.4 |
|
100 |
% |
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Nine months ended |
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September 27, 2024 |
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September 29, 2023 |
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Net Sales |
|
Gross Profit |
|
Gross Margin |
|
Net Sales |
|
Gross Profit |
|
Gross Margin |
||||||||||||||||||
Fresh and value-added products |
$ |
1,994.6 |
|
61 |
% |
|
$ |
197.2 |
|
68 |
% |
|
9.9 |
% |
|
$ |
1,895.0 |
|
57 |
% |
|
$ |
145.3 |
|
50 |
% |
|
7.7 |
% |
Banana |
|
1,119.1 |
|
34 |
% |
|
|
72.8 |
|
25 |
% |
|
6.5 |
% |
|
|
1,258.6 |
|
38 |
% |
|
|
125.7 |
|
44 |
% |
|
10.0 |
% |
Other products and services |
|
153.3 |
|
5 |
% |
|
|
19.2 |
|
7 |
% |
|
12.5 |
% |
|
|
158.5 |
|
5 |
% |
|
|
17.2 |
|
6 |
% |
|
10.9 |
% |
|
$ |
3,267.0 |
|
100 |
% |
|
$ |
289.2 |
|
100 |
% |
|
8.9 |
% |
|
$ |
3,312.1 |
|
100 |
% |
|
$ |
288.2 |
|
100 |
% |
|
8.7 |
% |
(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" as referenced throughout this release is defined as Net income attributable to Fresh Del Monte Produce Inc. |
Third Quarter 2024 Business Segment Performance
Fresh and Value-Added Products
Net sales for the third quarter of 2024 were
Gross profit for the third quarter of 2024 was
Gross Profit for the third quarter of 2024 included
Banana
Net sales for the third quarter of 2024 were
Gross profit for the third quarter of 2024 was
Gross profit for the third quarter of 2024 included
Other Products and Services
Net sales for the third quarter of 2024 were
Gross profit for the third quarter of 2024 was
Cash Flows
Net cash provided by operating activities for the first nine months of 2024 was
Long Term Debt
Long-term debt decreased to
Quarterly Cash Dividend
On October 29, 2024, the Company's Board of Directors declared a quarterly cash dividend of
Fresh Del Monte Produce Inc. and Subsidiaries |
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Condensed Consolidated Statements of Operations |
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Quarter ended |
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Nine months ended |
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Statement of Operations: |
September 27,
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|
September 29,
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September 27,
|
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September 29,
|
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Net sales |
$ |
1,019.5 |
|
|
$ |
1,003.1 |
|
$ |
3,267.0 |
|
|
$ |
3,312.1 |
Cost of products sold |
|
925.1 |
|
|
|
920.3 |
|
|
2,977.0 |
|
|
|
3,013.7 |
Other product-related charges |
|
0.6 |
|
|
|
8.4 |
|
|
0.8 |
|
|
|
10.2 |
Gross profit |
|
93.8 |
|
|
|
74.4 |
|
|
289.2 |
|
|
|
288.2 |
Selling, general and administrative expenses |
|
47.9 |
|
|
|
48.1 |
|
|
148.6 |
|
|
|
142.6 |
Gain on disposal of property, plant and equipment, net and subsidiary |
|
8.2 |
|
|
|
1.6 |
|
|
26.6 |
|
|
|
35.8 |
Asset impairment and other charges, net |
|
0.2 |
|
|
|
2.5 |
|
|
1.2 |
|
|
|
9.5 |
Operating income |
|
53.9 |
|
|
|
25.4 |
|
|
166.0 |
|
|
|
171.9 |
Interest expense, net |
|
4.2 |
|
|
|
5.4 |
|
|
14.0 |
|
|
|
19.4 |
Other (income) expense, net |
|
(0.1 |
) |
|
|
7.1 |
|
|
5.2 |
|
|
|
22.7 |
Income before income taxes |
|
49.8 |
|
|
|
12.9 |
|
|
146.8 |
|
|
|
129.8 |
Income tax provision |
|
7.9 |
|
|
|
4.1 |
|
|
25.6 |
|
|
|
24.9 |
Net income |
$ |
41.9 |
|
|
$ |
8.8 |
|
$ |
121.2 |
|
|
$ |
104.9 |
Less: Net (loss) income attributable to redeemable and noncontrolling interests |
|
(0.2 |
) |
|
|
0.4 |
|
|
(0.6 |
) |
|
|
9.8 |
Net income attributable to Fresh Del Monte Produce Inc. |
$ |
42.1 |
|
|
$ |
8.4 |
|
$ |
121.8 |
|
|
$ |
95.1 |
Earnings per share(1): |
|
|
|
|
|
|
|
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Basic |
$ |
0.88 |
|
|
$ |
0.17 |
|
$ |
2.55 |
|
|
$ |
1.98 |
Diluted |
$ |
0.88 |
|
|
$ |
0.17 |
|
$ |
2.54 |
|
|
$ |
1.97 |
Dividends declared per ordinary share |
$ |
0.25 |
|
|
$ |
0.20 |
|
$ |
0.75 |
|
|
$ |
0.55 |
Weighted average number of ordinary shares: |
|
|
|
|
|
|
|
||||||
Basic |
|
47,936,254 |
|
|
|
48,121,978 |
|
|
47,855,020 |
|
|
|
48,015,874 |
Diluted |
|
48,023,238 |
|
|
|
48,261,757 |
|
|
47,967,458 |
|
|
|
48,209,443 |
(1) Earnings per share ("EPS") is calculated based on Net income attributable to Fresh Del Monte Produce Inc. |
Fresh Del Monte Produce Inc. and Subsidiaries |
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Condensed Consolidated Balance Sheets |
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( |
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|
September 27,
|
|
December 29,
|
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Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
50.8 |
|
|
$ |
33.8 |
|
Trade accounts receivable, net |
|
390.3 |
|
|
|
387.0 |
|
Other accounts receivable, net |
|
82.0 |
|
|
|
95.1 |
|
Inventories, net |
|
588.7 |
|
|
|
599.9 |
|
Assets held for sale |
|
25.6 |
|
|
|
4.5 |
|
Prepaid expenses and other current assets |
|
28.9 |
|
|
|
24.0 |
|
Total current assets |
|
1,166.3 |
|
|
|
1,144.3 |
|
|
|
|
|
||||
Investments in and advances to unconsolidated companies |
|
36.2 |
|
|
|
22.2 |
|
Property, plant and equipment, net |
|
1,203.2 |
|
|
|
1,256.4 |
|
Operating lease right-of-use assets |
|
194.7 |
|
|
|
213.8 |
|
Goodwill |
|
402.2 |
|
|
|
401.9 |
|
Intangible assets, net |
|
33.2 |
|
|
|
33.3 |
|
Deferred income taxes |
|
52.6 |
|
|
|
51.5 |
|
Other noncurrent assets |
|
68.5 |
|
|
|
60.7 |
|
Total assets |
$ |
3,156.9 |
|
|
$ |
3,184.1 |
|
|
|
|
|
||||
Liabilities and shareholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
489.6 |
|
|
$ |
479.0 |
|
Current maturities of debt and finance leases |
|
1.5 |
|
|
|
1.4 |
|
Current maturities of operating leases |
|
38.8 |
|
|
|
48.6 |
|
Other current liabilities |
|
27.0 |
|
|
|
11.6 |
|
Total current liabilities |
|
556.9 |
|
|
|
540.6 |
|
|
|
|
|
||||
Long-term debt and finance leases |
|
274.8 |
|
|
|
406.1 |
|
Retirement benefits |
|
83.5 |
|
|
|
82.3 |
|
Deferred income taxes |
|
77.3 |
|
|
|
72.7 |
|
Operating leases, less current maturities |
|
130.5 |
|
|
|
142.1 |
|
Other noncurrent liabilities |
|
26.3 |
|
|
|
27.6 |
|
Total liabilities |
|
1,149.3 |
|
|
|
1,271.4 |
|
Commitments and contingencies |
|
|
|
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Redeemable noncontrolling interests |
|
— |
|
|
|
— |
|
Shareholders' equity: |
|
|
|
||||
Preferred shares |
|
— |
|
|
|
— |
|
Ordinary shares |
|
0.5 |
|
|
|
0.5 |
|
Paid-in capital |
|
602.9 |
|
|
|
597.7 |
|
Retained earnings |
|
1,427.0 |
|
|
|
1,341.4 |
|
Accumulated other comprehensive loss |
|
(39.2 |
) |
|
|
(43.3 |
) |
Total Fresh Del Monte Produce Inc. shareholders' equity |
|
1,991.2 |
|
|
|
1,896.3 |
|
Noncontrolling interests |
|
16.4 |
|
|
|
16.4 |
|
Total shareholders' equity |
|
2,007.6 |
|
|
|
1,912.7 |
|
Total liabilities, redeemable noncontrolling interest and shareholders' equity |
$ |
3,156.9 |
|
|
$ |
3,184.1 |
|
|
|
|
|
Fresh Del Monte Produce Inc. and Subsidiaries |
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Condensed Consolidated Statements of Cash Flows |
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( |
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Nine months ended |
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September 27,
|
|
September 29,
|
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Operating activities: |
|
|
|
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Net income |
$ |
121.2 |
|
|
$ |
104.9 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
59.2 |
|
|
|
64.9 |
|
Amortization of debt issuance costs |
|
0.4 |
|
|
|
0.4 |
|
Asset impairments |
|
0.7 |
|
|
|
8.1 |
|
Share-based compensation expense |
|
4.8 |
|
|
|
7.6 |
|
Change in uncertain tax positions |
|
(1.3 |
) |
|
|
0.5 |
|
Deferred income taxes |
|
3.4 |
|
|
|
(5.0 |
) |
Gain on disposal of property, plant and equipment and subsidiary |
|
(26.6 |
) |
|
|
(35.8 |
) |
Other, net |
|
(4.0 |
) |
|
|
(0.5 |
) |
Changes in operating assets and liabilities |
|
|
|
||||
Receivables |
|
(0.4 |
) |
|
|
(7.1 |
) |
Inventories |
|
12.7 |
|
|
|
74.7 |
|
Prepaid expenses and other current assets |
|
(6.6 |
) |
|
|
(3.4 |
) |
Accounts payable and accrued expenses |
|
26.2 |
|
|
|
(33.8 |
) |
Other assets and liabilities |
|
(2.5 |
) |
|
|
4.6 |
|
Net cash provided by operating activities |
|
187.2 |
|
|
|
180.1 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Capital expenditures |
|
(34.1 |
) |
|
|
(40.7 |
) |
Proceeds from sales of property, plant and equipment and subsidiary |
|
35.6 |
|
|
|
115.5 |
|
Insurance proceeds received for damage to property, plant and equipment, net |
|
5.7 |
|
|
|
— |
|
Investments in and advances to unconsolidated companies |
|
(6.2 |
) |
|
|
(4.4 |
) |
Other investing activities |
|
— |
|
|
|
(0.5 |
) |
Net cash provided by investing activities |
|
1.0 |
|
|
|
69.9 |
|
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Proceeds from debt |
|
315.4 |
|
|
|
383.2 |
|
Payments on debt |
|
(445.8 |
) |
|
|
(522.0 |
) |
Purchase of redeemable noncontrolling interest |
|
— |
|
|
|
(5.2 |
) |
Distributions to noncontrolling interests |
|
— |
|
|
|
(17.9 |
) |
Share-based awards settled in cash for taxes |
|
(0.9 |
) |
|
|
(0.8 |
) |
Dividends paid |
|
(35.9 |
) |
|
|
(26.4 |
) |
Payment of deferred financing costs |
|
(2.2 |
) |
|
|
— |
|
Other financing activities |
|
(2.7 |
) |
|
|
(2.1 |
) |
Net cash used in financing activities |
|
(172.1 |
) |
|
|
(191.2 |
) |
Effect of exchange rate changes on cash |
|
0.9 |
|
|
|
1.9 |
|
Net increase in cash and cash equivalents |
|
17.0 |
|
|
|
60.7 |
|
Cash and cash equivalents, beginning |
|
33.8 |
|
|
|
17.2 |
|
Cash and cash equivalents, ending |
$ |
50.8 |
|
|
$ |
77.9 |
|
Non-GAAP Measures
The Company's results are determined in accordance with
These non-GAAP measures include the following: Adjusted gross profit, Adjusted gross margin, Adjusted operating income, Adjusted FDP net income, Adjusted diluted EPS, EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin. Adjusted gross profit, Adjusted gross margin, Adjusted operating income, Adjusted FDP net income and Adjusted diluted EPS each reflect adjustments relating to asset impairment and other charges, net, gain on disposal of property, plant and equipment, net, and subsidiary and other product-related charges. EBITDA is defined as net income attributable to Fresh Del Monte Produce Inc. excluding interest expense, net, provision for income taxes, depreciation and amortization, and share-based compensation expense. Adjusted EBITDA represents EBITDA with additional adjustments for asset impairment and other (credits) charges, net, gain on disposal of property, plant and equipment, net and 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.
These non-GAAP measures 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 |
||||||||||||||||||||||||||||
|
September 27,
|
|
September 29,
|
||||||||||||||||||||||||||
|
Gross
|
|
Operating
|
|
Net income attributable to Fresh Del Monte Produce Inc. |
|
Diluted EPS |
|
Gross
|
|
Operating
|
|
Net income attributable to Fresh Del Monte Produce Inc. |
|
Diluted
|
||||||||||||||
As reported |
$ |
93.8 |
|
$ |
53.9 |
|
|
$ |
42.1 |
|
|
$ |
0.88 |
|
|
$ |
74.4 |
|
$ |
25.4 |
|
|
$ |
8.4 |
|
|
$ |
0.17 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other product-related charges (1) |
|
0.6 |
|
|
0.6 |
|
|
|
0.6 |
|
|
|
0.01 |
|
|
|
8.4 |
|
|
8.4 |
|
|
|
8.4 |
|
|
|
0.17 |
|
Asset impairment and other charges, net (2) |
|
— |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
2.5 |
|
|
|
2.5 |
|
|
|
0.05 |
|
Gain on disposal of property, plant and equipment, net and subsidiary (3) |
|
— |
|
|
(8.2 |
) |
|
|
(8.2 |
) |
|
|
(0.17 |
) |
|
|
— |
|
|
(2.0 |
) |
|
|
(2.0 |
) |
|
|
(0.04 |
) |
Other adjustments (4) |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Tax effects of all adjustments (5) |
|
— |
|
|
— |
|
|
|
2.3 |
|
|
|
0.05 |
|
|
|
— |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
As adjusted |
$ |
94.4 |
|
$ |
46.5 |
|
|
$ |
37.0 |
|
|
$ |
0.77 |
|
|
$ |
82.8 |
|
$ |
34.3 |
|
|
$ |
17.2 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Nine months ended |
||||||||||||||||||||||||||||
|
September 27,
|
|
September 29,
|
||||||||||||||||||||||||||
|
Gross
|
|
Operating
|
|
Net income attributable to Fresh Del Monte Produce Inc. |
|
Diluted EPS |
|
Gross
|
|
Operating
|
|
Net income attributable to Fresh Del Monte Produce Inc. |
|
Diluted EPS |
||||||||||||||
As reported |
$ |
289.2 |
|
$ |
166.0 |
|
|
$ |
121.8 |
|
|
$ |
2.54 |
|
|
$ |
288.2 |
|
$ |
171.9 |
|
|
$ |
95.1 |
|
|
$ |
1.97 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other product-related charges (1) |
|
0.8 |
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.02 |
|
|
|
10.2 |
|
|
10.2 |
|
|
|
10.2 |
|
|
|
0.21 |
|
Asset impairment and other charges, net (2) |
|
— |
|
|
1.2 |
|
|
|
1.2 |
|
|
|
0.02 |
|
|
|
— |
|
|
9.5 |
|
|
|
9.5 |
|
|
|
0.20 |
|
Gain on disposal of property, plant and equipment, net and subsidiary (3) |
|
— |
|
|
(26.6 |
) |
|
|
(26.6 |
) |
|
|
(0.56 |
) |
|
|
— |
|
|
(38.3 |
) |
|
|
(38.3 |
) |
|
|
(0.79 |
) |
Other adjustments (4) |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
7.6 |
|
|
|
0.16 |
|
Tax effects of all adjustments (5) |
|
— |
|
|
— |
|
|
|
6.6 |
|
|
|
0.14 |
|
|
|
— |
|
|
— |
|
|
|
5.9 |
|
|
|
0.12 |
|
As adjusted |
$ |
290.0 |
|
$ |
141.4 |
|
|
$ |
103.8 |
|
|
$ |
2.16 |
|
|
$ |
298.4 |
|
$ |
153.3 |
|
|
$ |
90.0 |
|
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fresh Del Monte Produce Inc. and Subsidiaries |
||||||||||||||||||||||||||||||
|
Segment Gross Profit Non-GAAP Reconciliation |
||||||||||||||||||||||||||||||
|
( |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Quarter ended |
||||||||||||||||||||||||||||||
|
September 27,
|
|
September 29,
|
||||||||||||||||||||||||||||
|
Fresh and value-added products |
|
Banana |
|
Other products and services |
|
Total |
|
Fresh and value-added products |
|
Banana |
|
Other products and services |
|
Total |
||||||||||||||||
Gross profit (as reported) |
$ |
63.3 |
|
|
$ |
21.3 |
|
|
$ |
9.2 |
|
|
$ |
93.8 |
|
|
$ |
36.2 |
|
|
$ |
31.9 |
|
|
$ |
6.3 |
|
|
$ |
74.4 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other product-related charges (1) |
|
0.2 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
8.4 |
|
|
|
— |
|
|
|
— |
|
|
|
8.4 |
|
Adjusted gross profit |
$ |
63.5 |
|
|
$ |
21.7 |
|
|
$ |
9.2 |
|
|
$ |
94.4 |
|
|
$ |
44.6 |
|
|
$ |
31.9 |
|
|
$ |
6.3 |
|
|
$ |
82.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Sales |
$ |
623.7 |
|
|
$ |
345.3 |
|
|
$ |
50.5 |
|
|
$ |
1,019.5 |
|
|
$ |
574.0 |
|
|
$ |
384.7 |
|
|
$ |
44.4 |
|
|
$ |
1,003.1 |
|
Gross margin (a) |
|
10.1 |
% |
|
|
6.2 |
% |
|
|
18.2 |
% |
|
|
9.2 |
% |
|
|
6.3 |
% |
|
|
8.3 |
% |
|
|
14.2 |
% |
|
|
7.4 |
% |
Adjusted gross margin (b) |
|
10.2 |
% |
|
|
6.3 |
% |
|
|
18.2 |
% |
|
|
9.3 |
% |
|
|
7.8 |
% |
|
|
8.3 |
% |
|
|
14.2 |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Nine months ended |
||||||||||||||||||||||||||||||
|
September 27,
|
|
September 29,
|
||||||||||||||||||||||||||||
|
Fresh and value-added products |
|
Banana |
|
Other products and services |
|
Total |
|
Fresh and value-added products |
|
Banana |
|
Other products and services |
|
Total |
||||||||||||||||
Gross profit (as reported) |
$ |
197.2 |
|
|
$ |
72.8 |
|
|
$ |
19.2 |
|
|
$ |
289.2 |
|
|
$ |
145.3 |
|
|
$ |
125.7 |
|
|
$ |
17.2 |
|
|
$ |
288.2 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other product-related (credits) charges (1) |
|
0.4 |
|
|
|
0.4 |
|
|
|
— |
|
|
|
0.8 |
|
|
|
10.1 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
10.2 |
|
Adjusted Gross profit |
$ |
197.6 |
|
|
$ |
73.2 |
|
|
$ |
19.2 |
|
|
$ |
290.0 |
|
|
$ |
155.4 |
|
|
$ |
125.8 |
|
|
$ |
17.2 |
|
|
$ |
298.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Sales |
$ |
1,994.6 |
|
|
$ |
1,119.1 |
|
|
$ |
153.3 |
|
|
$ |
3,267.0 |
|
|
$ |
1,895.0 |
|
|
$ |
1,258.6 |
|
|
$ |
158.5 |
|
|
$ |
3,312.1 |
|
Gross margin (a) |
|
9.9 |
% |
|
|
6.5 |
% |
|
|
12.5 |
% |
|
|
8.9 |
% |
|
|
7.7 |
% |
|
|
10.0 |
% |
|
|
10.9 |
% |
|
|
8.7 |
% |
Adjusted Gross margin (b) |
|
9.9 |
% |
|
|
6.5 |
% |
|
|
12.5 |
% |
|
|
8.9 |
% |
|
|
8.2 |
% |
|
|
10.0 |
% |
|
|
10.9 |
% |
|
|
9.0 |
% |
(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 |
|
Nine months ended |
||||||||||||
|
September 27,
|
|
September 29,
|
|
September 27,
|
|
September 29,
|
||||||||
Net income attributable to Fresh Del Monte Produce Inc. |
$ |
42.1 |
|
|
$ |
8.4 |
|
|
$ |
121.8 |
|
|
$ |
95.1 |
|
Interest expense, net |
|
4.2 |
|
|
|
5.4 |
|
|
|
14.0 |
|
|
|
19.4 |
|
Income tax provision |
|
7.9 |
|
|
|
4.1 |
|
|
|
25.6 |
|
|
|
24.9 |
|
Depreciation & amortization |
|
19.5 |
|
|
|
21.2 |
|
|
|
59.2 |
|
|
|
64.9 |
|
Share-based compensation expense |
|
2.0 |
|
|
|
2.4 |
|
|
|
4.8 |
|
|
|
7.6 |
|
EBITDA |
$ |
75.7 |
|
|
$ |
41.5 |
|
|
$ |
225.4 |
|
|
$ |
211.9 |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
||||||||
Other product-related charges (1) |
|
0.6 |
|
|
|
8.4 |
|
|
|
0.8 |
|
|
|
10.2 |
|
Asset impairment and other charges, net (2) |
|
0.2 |
|
|
|
2.5 |
|
|
|
1.2 |
|
|
|
9.5 |
|
Gain on disposal of property, plant and equipment, net and subsidiary (3) |
|
(8.2 |
) |
|
|
(2.0 |
) |
|
|
(26.6 |
) |
|
|
(38.3 |
) |
Other adjustments (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.6 |
|
Adjusted EBITDA |
$ |
68.3 |
|
|
$ |
50.4 |
|
|
$ |
200.8 |
|
|
$ |
200.9 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,019.5 |
|
|
$ |
1,003.1 |
|
|
$ |
3,267.0 |
|
|
$ |
3,312.1 |
|
Net income margin (a) |
|
4.1 |
% |
|
|
0.8 |
% |
|
|
3.7 |
% |
|
|
2.9 |
% |
(a) Calculated as Net income attributable to Fresh Del Monte Produce Inc. as a percentage of net sales. |
|
|
|
|
|
|
|
||||||||
EBITDA margin (b) |
|
7.4 |
% |
|
|
4.1 |
% |
|
|
6.9 |
% |
|
|
6.4 |
% |
(b) Calculated as EBITDA as a percentage of net sales. |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA margin (c) |
|
6.7 |
% |
|
|
5.0 |
% |
|
|
6.1 |
% |
|
|
6.1 |
% |
(c) Calculated as Adjusted EBITDA as a percentage of net sales. |
|
|
|
|
|
|
|
(1) |
Other product-related charges for the quarter ended September 27, 2024, primarily consisted of |
|
|
||
(2) |
Asset impairment and other charges, net for the quarter ended September 27, 2024, primarily consisted of |
|
|
||
(3) |
Gain on disposal of property, plant and equipment, net and subsidiary for the quarter ended September 27, 2024, primarily consisted of a |
|
|
||
(4) | Other adjustments for the nine months ended September 29, 2023, primarily related to the portions of the gain on disposal of property, plant and equipment, net and other product-related charges 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. |
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 third quarter 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
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 press release and the earnings call contain forward-looking statements regarding the Company’s plans and expectations for future performance, including: the Company’s focus on high-margin, value-added products; our ability to streamline operations and the impact that may have on our profitability and future growth; our ability to generate value for shareholders, including through focusing on its strengths in pineapple, fresh-cut fruit, avocados and value-added products; our expectations regarding our ability to implement strategic alternatives for streamlining our Mann Packing business, and any impact on our profitability and financial condition; our ongoing commitment to future growth, operational excellence and meeting evolving customer and consumer demands; our expectations regarding our pineapple varieties and related innovations, and our ability to expand production and meet the ongoing demand; our expectations regarding customer growth and the expansion and diversification of our product offerings; our expectations regarding our fresh-cut facilities; our expectations regarding our avocado and avocado-related products, as well as our ability to meet the growing demand from key customers and further drive innovation; our ability to strengthen our leadership, and the impact that may have on our business; our ongoing commitment to maximize the full utilization of our biomass, as well as the intended use and timing of such biofertilizers and the impact on our sustainability efforts; our anticipating completion of the sale of certain assets of Fresh Leaf Farms; the impact of recent and future weather-related events on our business, and our ability to recover insurance proceeds, if any, to cover any damage or expenses; our expectations for the tax rate; our commitment to maintaining a prudent capital structure and creating long-term value for shareholders; our expected capital expenditures in 2024; our expected segment results for the full year; our expected net sales and gross margin for the fresh and value-added segment; the impact of any strategic initiative to improve gross margin, including consolidating facilities, expanding fresh-cut facilities, managing product and procurement costs and expanding market presence and our anticipated sales volume regarding our banana segment, any supply and shipping challenges that we may encounter. 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, biofertilizers and other technology to effectively manage costs and pricing, (iii) the outcome and anticipated timing of strategic alternatives with respect to the Mann Packing operation, and any impact on our business and results of operations, (iv) the impact of foreign currency fluctuations, including the effectiveness of our hedging activities, (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 ongoing conflict in the
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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
Source: Fresh Del Monte Produce Inc.
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