Strong Margin Improvement in the Fresh and
Value-Added Products Segment Compared with the Prior-Year Period,
Highlights Strategic Focus
Debt Falls Below $300M, Signaling Strengthened
Financial Stability
Fresh Del Monte Produce Inc. (NYSE: FDP), ("Fresh Del Monte" or
the "Company") today reported financial results for the second
quarter ended June 28, 2024.
"We are pleased to see our growth strategy and company focus
yielding positive results, in the fresh and value-added products
segment, where we achieved strong margin improvement during the
second quarter of 2024. We see pineapple, fresh-cut fruit,
avocados, and value-added products as core strengths—with consumers
appreciating the innovation, convenience, and taste," said Fresh
Del Monte Chairman and CEO Mohammad Abu-Ghazaleh.
Financial highlights for the second quarter 2024:
Net sales for the second quarter of 2024 were $1,139.7 million
compared with $1,180.5 million in the prior-year period. The
decrease in net sales was primarily due to lower banana net sales,
driven by lower sales volume and lower per unit selling prices for
bananas. The decrease was partially offset by an increase in net
sales in the fresh and value-added products segment driven by
higher per unit selling prices.
Gross profit for the second quarter of 2024 was $113.2 million
compared with $116.8 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, which were partly driven by
the negative impact of increased weather-related events, mainly
high temperatures and low rainfall, in production areas in Central
America and the Philippines, as well as the negative impact of
fluctuations in exchange rates partially offset by lower ocean
freight costs and higher per unit selling prices in the fresh and
value-added products segment. Gross profit in the second quarter of
2024 included $1.2 million of other product-related charges,
primarily due to $0.5 million for shipment disruptions in the Red
Sea and $0.5 million in additional clean-up costs associated with
the flooding of a seasonal production facility in Greece during the
third quarter of 2023. There were no product-related charges during
the second quarter of 2023. Gross margin for the second quarter of
2024 was 9.9%, in line with the prior-year period. Excluding the
net impact from the other product-related charges, Adjusted gross
profit(1) for the second quarter of 2024 was $114.4 million
compared with $116.8 million in the prior-year period.
Operating income for the second quarter of 2024 was $68.2
million compared with $72.1 million in the prior-year period. The
decrease in operating income was primarily due to lower gross
profit and a higher gain on the sale of assets in the prior-year
period. The decrease was partially offset by asset impairment and
other charges in the prior-year period compared with a credit for
insurance proceeds in the current year. Adjusted operating
income(1) was $64.5 million compared with $67.9 million in the
prior-year period. Adjusted operating income for the second quarter
of 2024 excludes the $1.2 million of other product-related charges
mentioned above, a $3.4 million gain on asset sale of a European
warehouse and $2.0 million of insurance recoveries associated with
fire damage for a facility in South America during the fourth
quarter of 2023. In the prior-year period, Adjusted operating
income excluded the gain on sale of $8.8 million primarily related
to the sale of the Company's plastics business and other
underutilized assets in South and Central America, $4.6 million of
asset impairment and other charges related to impairments of grape
vines in South America due to low productivity, idle land in
Central America, and expenses incurred in connection with a
cybersecurity incident in the first quarter of 2023.
Other (income) expense, net for the second quarter of 2024 was a
gain of $2.3 million, compared with a loss of $6.4 million in the
prior-year period. The change was primarily due to an unrealized
gain recognized on an unconsolidated company within the food and
nutrition sector and foreign currency gains during the current
quarter as compared with foreign currency losses in the prior-year
period.
FDP net income(2) for the second quarter of 2024 was $53.6
million compared with $47.7 million in the prior-year period and
Adjusted FDP net income(1) was $50.9 million compared with $46.2
million in the prior-year period. Adjusted FDP net income for the
second quarter of 2024 excludes the above-mentioned adjustments and
the associated $1.0 million tax effect. In the prior-year period,
Adjusted FDP net income excludes the above-mentioned adjustments
and the associated $2.7 million tax effect.
Second Quarter 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) -
(Unaudited)
Quarter ended
June 28, 2024
June 30, 2023
Segment Data:
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
694.1
61
%
$
77.9
69
%
11.2
%
$
677.6
57
%
$
62.1
53
%
9.2
%
Banana
394.3
35
%
29.8
26
%
7.6
%
448.8
38
%
50.5
43
%
11.3
%
Other products and services
51.3
4
%
5.5
5
%
10.7
%
54.1
5
%
4.2
4
%
7.8
%
$
1,139.7
100
%
$
113.2
100
%
9.9
%
$
1,180.5
100
%
$
116.8
100
%
9.9
%
Six months ended
June 28, 2024
June 30, 2023
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
1,370.8
61
%
$
133.9
69
%
9.8
%
$
1,321.0
57
%
$
109.1
51
%
8.3
%
Banana
773.8
34
%
51.5
26
%
6.7
%
873.9
38
%
93.7
44
%
10.7
%
Other products and services
102.9
5
%
10.0
5
%
9.7
%
114.1
5
%
11.0
5
%
9.6
%
$
2,247.5
100
%
$
195.4
100
%
8.7
%
$
2,309.0
100
%
$
213.8
100
%
9.3
%
(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.
Second Quarter 2024 Business Segment Performance
Fresh and Value-Added
Products
Net sales for the second quarter of 2024 were $694.1
million compared with $677.6 million in the prior-year period. The
increase in net sales was primarily a result of higher per unit
selling prices of avocados and higher sales volume and higher per
unit selling prices of non-tropical fruit. The increase was
partially offset by lower net sales of vegetables and fresh-cut
fruit due to lower sales volume.
Gross profit for the second quarter of 2024 was $77.9
million compared with $62.1 million in the prior-year period. The
increase in gross profit was primarily driven by higher per unit
selling prices partially offset by higher per unit production and
procurement costs of avocados, as well as the negative impact of
fluctuations in exchange rates primarily a stronger Costa Rican
colon and Mexican peso. Gross profit for the second quarter of 2024
included the $1.2 million of other product-related charges
mentioned above. Gross margin increased to 11.2% compared with 9.2%
in the prior-year period.
Banana
Net sales for the second quarter of 2024 were $394.3
million compared with $448.8 million in the prior-year period. The
decrease in net sales was primarily a result of lower sales volume
in North America due to competitive market pressures and lower
sales volume and lower per unit selling prices in Asia along with
the negative impact of fluctuations in exchange rates, primarily
due to a weaker Japanese yen.
Gross profit for the second quarter of 2024 was $29.8
million compared with $50.5 million in the prior-year period. The
decrease in gross profit was principally driven by 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. The decrease was partially offset by lower per unit
distribution and ocean freight costs. Gross margin decreased to
7.6% compared with 11.3% in the prior-year period.
Other Products and
Services
Net sales for the second quarter of 2024 were $51.3
million compared with $54.1 million in the prior-year period. The
decrease in net sales was primarily due to the sale of the
Company’s plastic products business in the second quarter of
2023.
Gross profit for the second quarter of 2024 was $5.5
million compared with $4.2 million in the prior-year period. The
increase in gross profit was primarily due to higher per unit
selling prices in the Company's poultry and meats business. Gross
margin increased to 10.7% compared with 7.8% in the prior-year
period.
Cash Flows
Net cash provided by operating activities for the first six
months of 2024 was $143.7 million compared with $132.7 million in
the prior-year period. The increase in net cash provided by
operating activities was primarily attributable to working capital
fluctuations, mainly driven by higher levels of accounts payable
and accrued expenses, mainly due to the timing of period-end
payments to suppliers and lower levels of account receivables.
Long Term Debt
Long-term debt decreased to $285.0 million at the end of the
second quarter of 2024 from $400.5 million at the end of the second
quarter of 2023, a decrease of approximately 29%.
Quarterly Cash Dividend
On July 30, 2024, the Company's Board of Directors declared a
quarterly cash dividend of $0.25 per share, payable on September 6,
2024, to shareholders of record on August 15, 2024.
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated
Statements of Operations
(U.S. dollars in millions,
except share and per share data) - (Unaudited)
Quarter ended
Six months ended
Statement of Operations:
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Net sales
$
1,139.7
$
1,180.5
$
2,247.5
$
2,309.0
Cost of products sold
1,025.3
1,063.7
2,051.9
2,093.4
Other product-related charges
1.2
—
0.2
1.8
Gross profit
113.2
116.8
195.4
213.8
Selling, general and administrative
expenses
49.9
46.8
100.5
94.4
Gain on disposal of property, plant and
equipment, net and subsidiary
3.6
6.7
18.3
34.2
Asset impairment and other (credits)
charges, net
(1.3
)
4.6
1.0
7.1
Operating income
68.2
72.1
112.2
146.5
Interest expense, net
4.9
6.1
9.8
13.9
Other (income) expense, net
(2.3
)
6.4
5.4
15.7
Income before income taxes
65.6
59.6
97.0
116.9
Income tax provision
12.3
11.3
17.6
20.9
Net income
$
53.3
$
48.3
$
79.4
$
96.0
Less: Net (loss) income attributable to
redeemable and noncontrolling interests
(0.3
)
0.6
(0.3
)
9.3
Net income attributable to Fresh Del Monte
Produce Inc.
$
53.6
$
47.7
$
79.7
$
86.7
Earnings per share(1):
Basic
$
1.12
$
0.99
$
1.67
$
1.81
Diluted
$
1.12
$
0.99
$
1.66
$
1.80
Dividends declared per ordinary share
$
0.25
$
0.20
$
0.50
$
0.35
Weighted average number of ordinary
shares:
Basic
47,919,451
48,032,711
47,814,403
47,962,822
Diluted
47,975,217
48,213,033
47,939,568
48,183,287
(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
Condensed Consolidated Balance
Sheets
(U.S. dollars in millions) -
(Unaudited)
June 28, 2024
December 29,
2023
Assets
Current assets:
Cash and cash equivalents
$
37.8
$
33.8
Trade accounts receivable, net
408.1
387.0
Other accounts receivable, net
86.2
95.1
Inventories, net
537.4
599.9
Assets held for sale
10.9
4.5
Prepaid expenses and other current
assets
23.8
24.0
Total current assets
1,104.2
1,144.3
Investments in and advances to
unconsolidated companies
30.8
22.2
Property, plant and equipment, net
1,221.3
1,256.4
Operating lease right-of-use assets
196.1
213.8
Goodwill
401.7
401.9
Intangible assets, net
33.2
33.3
Deferred income taxes
53.9
51.5
Other noncurrent assets
67.9
60.7
Total assets
$
3,109.1
$
3,184.1
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and accrued expenses
$
467.2
$
479.0
Current maturities of debt and finance
leases
1.4
1.4
Current maturities of operating leases
41.4
48.6
Other current liabilities
22.0
11.6
Total current liabilities
532.0
540.6
Long-term debt and finance leases
290.4
406.1
Retirement benefits
81.5
82.3
Deferred income taxes
78.5
72.7
Operating leases, less current
maturities
130.7
142.1
Other noncurrent liabilities
25.8
27.6
Total liabilities
1,138.9
1,271.4
Commitments and contingencies
Redeemable noncontrolling interests
—
—
Shareholders' equity:
Preferred shares
—
—
Ordinary shares
0.5
0.5
Paid-in capital
600.9
597.7
Retained earnings
1,396.9
1,341.4
Accumulated other comprehensive loss
(44.2
)
(43.3
)
Total Fresh Del Monte Produce Inc.
shareholders' equity
1,954.1
1,896.3
Noncontrolling interests
16.1
16.4
Total shareholders' equity
1,970.2
1,912.7
Total liabilities, redeemable
noncontrolling interest and shareholders' equity
$
3,109.1
$
3,184.1
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(U.S. dollars in millions) -
(Unaudited)
Six months ended
June 28, 2024
June 30, 2023
Operating activities:
Net income
$
79.4
$
96.0
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
39.7
43.7
Amortization of debt issuance costs
0.3
0.2
Asset impairments
0.7
2.8
Share-based compensation expense
2.8
5.1
Change in uncertain tax positions
(1.5
)
0.4
Deferred income taxes
3.3
(6.1
)
Gain on disposal of property, plant and
equipment
(18.3
)
(34.2
)
Other, net
0.4
0.2
Changes in operating assets and
liabilities
Receivables
(21.9
)
(44.3
)
Inventories
60.4
81.8
Prepaid expenses and other current
assets
(0.3
)
0.4
Accounts payable and accrued expenses
3.7
(17.0
)
Other assets and liabilities
(5.0
)
3.7
Net cash provided by operating
activities
143.7
132.7
Investing activities:
Capital expenditures
(20.7
)
(18.9
)
Proceeds from sales of property, plant and
equipment
21.1
96.8
Insurance proceeds received for damage to
property, plant and equipment, net
5.7
—
Investments in and advances to
unconsolidated companies
(4.5
)
(3.7
)
Other investing activities
—
(0.5
)
Net cash provided by investing
activities
1.6
73.7
Financing activities:
Proceeds from debt
127.0
232.9
Payments on debt
(242.0
)
(372.2
)
Purchase of redeemable noncontrolling
interest
—
(5.2
)
Distributions to noncontrolling
interests
—
(17.8
)
Share-based awards settled in cash for
taxes
(0.9
)
(0.7
)
Dividends paid
(23.9
)
(16.8
)
Payment of deferred financing costs
(2.2
)
—
Other financing activities
(2.3
)
(0.4
)
Net cash used in financing
activities
(144.3
)
(180.2
)
Effect of exchange rate changes on
cash
3.0
0.4
Net increase in cash and cash
equivalents
4.0
26.6
Cash and cash equivalents, beginning
33.8
17.2
Cash and cash equivalents, ending
$
37.8
$
43.8
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 that are referred to in this press release as
“non-GAAP measures.” Management believes these non-GAAP measures
provide a more comparable analysis of the underlying operating
performance of the business.
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 (credits) 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
(U.S. dollars in millions,
except per-share amounts) - (Unaudited)
Quarter ended
June 28, 2024
June 30, 2023
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
As reported
$
113.2
$
68.2
$
53.6
$
1.12
$
116.8
$
72.1
$
47.7
$
0.99
Adjustments:
Other product-related charges (1)
1.2
1.2
1.2
0.03
—
—
—
—
Asset impairment and other (credits)
charges, net (2)
—
(1.3
)
(1.3
)
(0.03
)
—
4.6
4.6
0.09
Gain on disposal of property, plant and
equipment, net and subsidiary (3)
—
(3.6
)
(3.6
)
(0.08
)
—
(8.8
)
(8.8
)
(0.18
)
Other adjustments (4)
—
—
—
—
—
—
—
—
Tax effects of all adjustments (5)
—
—
1.0
0.02
—
—
2.7
0.06
As adjusted
$
114.4
$
64.5
$
50.9
$
1.06
$
116.8
$
67.9
$
46.2
$
0.96
Six months ended
June 28, 2024
June 30, 2023
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
As reported
$
195.4
$
112.2
$
79.7
$
1.66
$
213.8
$
146.5
$
86.7
$
1.80
Adjustments:
Other product-related charges (1)
0.2
0.2
0.2
—
1.8
1.8
1.8
0.04
Asset impairment and other (credits)
charges, net (2)
—
1.0
1.0
0.02
—
7.1
7.1
0.15
Gain on disposal of property, plant and
equipment, net and subsidiary (3)
—
(18.3
)
(18.3
)
(0.38
)
—
(36.3
)
(36.3
)
(0.76
)
Other adjustments (4)
—
—
—
—
—
—
7.6
0.16
Tax effects of all adjustments (5)
—
—
4.3
0.09
—
—
6.0
0.12
As adjusted
$
195.6
$
95.1
$
66.9
$
1.39
$
215.6
$
119.1
$
72.9
$
1.51
Fresh Del Monte Produce Inc.
and Subsidiaries
Segment Gross Profit Non-GAAP
Reconciliation
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
June 28, 2024
June 30, 2023
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)
$
77.9
$
29.8
$
5.5
$
113.2
$
62.1
$
50.5
$
4.2
$
116.8
Adjustments:
Other product-related charges (1)
1.2
—
—
1.2
—
—
—
—
Adjusted gross profit
$
79.1
$
29.8
$
5.5
$
114.4
$
62.1
$
50.5
$
4.2
$
116.8
Net Sales
$
694.1
$
394.3
$
51.3
$
1,139.7
$
677.6
$
448.8
$
54.1
$
1,180.5
Gross margin (a)
11.2
%
7.6
%
10.7
%
9.9
%
9.2
%
11.3
%
7.8
%
9.9
%
Adjusted gross margin (b)
11.4
%
7.6
%
10.7
%
10.0
%
9.2
%
11.3
%
7.8
%
9.9
%
Six months ended
June 28, 2024
June 30, 2023
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)
$
133.9
$
51.5
$
10.0
$
195.4
$
109.1
$
93.7
$
11.0
$
213.8
Adjustments:
Other product-related charges (1)
0.2
—
—
0.2
1.7
0.1
—
1.8
Adjusted Gross profit
$
134.1
$
51.5
$
10.0
$
195.6
$
110.8
$
93.8
$
11.0
$
215.6
Net Sales
$
1,370.8
$
773.8
$
102.9
$
2,247.5
$
1,321.0
$
873.9
$
114.1
$
2,309.0
Gross margin (a)
9.8
%
6.7
%
9.7
%
8.7
%
8.3
%
10.7
%
9.6
%
9.3
%
Adjusted Gross margin (b)
9.8
%
6.7
%
9.7
%
8.7
%
8.4
%
10.7
%
9.6
%
9.3
%
(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
Six months ended
June 28, 2024
June 30, 2023
June 28, 2024
June 30, 2023
Net income attributable to Fresh Del Monte
Produce Inc.
$
53.6
$
47.7
$
79.7
$
86.7
Interest expense, net
4.9
6.1
9.8
13.9
Income tax provision
12.3
11.3
17.6
20.9
Depreciation & amortization
19.7
21.6
39.7
43.7
Share-based compensation expense
2.2
2.9
2.8
5.1
EBITDA
$
92.7
$
89.6
$
149.6
$
170.3
Adjustments:
Other product-related charges (1)
1.2
—
0.2
1.8
Asset impairment and other (credits)
charges, net (2)
(1.3
)
4.6
1.0
7.1
Gain on disposal of property, plant and
equipment, net and subsidiary (3)
(3.6
)
(8.8
)
(18.3
)
(36.3
)
Other adjustments (4)
—
—
—
7.6
Adjusted EBITDA
$
89.0
$
85.4
$
132.5
$
150.5
Net sales
$
1,139.7
$
1,180.5
$
2,247.5
$
2,309.0
Net income margin (a)
4.7
%
4.0
%
3.5
%
3.8
%
(a) Calculated as Net income attributable
to Fresh Del Monte Produce Inc. as a percentage of net sales.
EBITDA margin (b)
8.1
%
7.6
%
6.7
%
7.4
%
(b) Calculated as EBITDA as a percentage
of net sales.
Adjusted EBITDA margin (c)
7.8
%
7.2
%
5.9
%
6.5
%
(c) Calculated as Adjusted EBITDA as a
percentage of net sales.
(1)
Other product-related charges for the
quarter ended June 28, 2024, primarily consisted of $0.5 million
related to shipment disruptions in the Red Sea and $0.5 million in
clean-up costs associated with the flooding of a seasonal
production facility in Greece during the third quarter of 2023. For
the six months ended June 28, 2024, other product-related charges
also consisted of $2.2 million of insurance recoveries associated
with Greece production facility flooding, partially offset by $1.2
million of severance charges from the outsourcing of certain
functions within our fresh and value-added operations. Other
product-related charges for the six months ended June 30, 2023,
consisted of inventory write-offs which were primarily related to
the sale of two distribution centers in the Middle East.
(2)
Asset impairment and other (credits)
charges, net for the quarter ended June 28, 2024, primarily
consisted of $2.0 million of insurance recoveries associated with
fire damage to a warehouse facility in South America during the
fourth quarter of 2023, partially offset by impairment charges of
banana-related fixed assets in the Philippines. For the six months
ended June 28, 2024, asset impairment and other (credits) charges,
net also included $1.8 million of legal settlement charges and $0.5
million of reserves related to a potential liability arising from
our third-party logistics operations (refer to the Form 10-Q for
the quarter and six months ended June 28, 2024, for further
information on this matter). Asset impairment and other (credits)
charges, net for the quarter ended June 30, 2023, primarily
consisted of impairment charges related to low productivity grape
vines in South America and idle land in Central America. For the
six months ended June 30, 2023, asset impairment and other
(credits) charges, net also included expenses incurred in
connection with a cybersecurity incident which occurred during
early 2023. The 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.
(3)
Gain on disposal of property, plant and
equipment, net and subsidiary for the quarter ended June 28, 2024,
primarily consisted of a $3.4 million gain from the sale of a
warehouse in Europe. For the six months ended June 28, 2024, gain
on disposal of property, plant and equipment, net and subsidiary
also included a $14.7 million gain from the sale of two idle
facilities in South America. Gain on disposal of property, plant
and equipment, net and subsidiary for the quarter ended June 30,
2023, primarily included a $3.8 million gain on the sale of the
Company's plastics business subsidiary in South America and gains
on the sales of land assets in South and Central America. For the
six months ended June 30, 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
the Middle East and a $7.0 million gain on the sale of an idle
facility in North America.
(4)
Other adjustments for the six months ended
June 30, 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 4:45 p.m. Eastern Time today to discuss the second
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 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, 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 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 operational excellence, cost discipline and
strategic capital allocation to improve profitability; its ability
to generate value for its shareholders, including through focusing
on its strengths in pineapple, fresh-cut cut fruit, avocados and
value-added products; our expectations regarding the demand and
volume growth projection of our pineapple varieties and avocado and
avocado-related products; our ability to reduce operational costs
and improve margins in our fresh and value-added segment; our
expectations regarding customer growth and the expansion and
diversification of our product offerings; our expected segment
results for the remainder of 2024; expected capital expenditures in
2024; expected progress on its strategic alternatives with respect
to Mann Packing, and any impact on our business and results of
operations; our ongoing commitment to maximize the full utilization
of our fruit residues, as well as the intended use and timing of
such biofertilizers and the impact on our sustainability efforts;
our expectations for the tax rate; our commitment to maintaining a
prudent capital structure and creating long-term value for
shareholders; our expectations regarding seasonality; and our
anticipated sales volume regarding our banana segment, and 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 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 Middle East on supply chain logistics
and other disruptions in the Company's supply chain, (vii) trends
and other factors affecting consumer preferences or consumer,
including customers’ reception of our new product offerings and
innovation, (viii) factors outside the Company’s control that
impact its and other growers’ crop quality and yields, such as crop
disease, severe weather conditions, disruptions or issues that
impact its production facilities or complex logistics network, and
the availability of sufficient labor during peak growing and
harvesting seasons, (ix) competitive pressures and the Company’s
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 our current or future tax audits and our ability to
successfully contest such tax claims and pursue necessary remedies,
(xi) the cost and other implications of changes in regulations
applicable to our business, including potential legislative or
regulatory initiatives in the United States or elsewhere directed
at mitigating the effects of climate change, (xii) damage to our
reputation or brand names or negative publicity about our products,
and (xiii) the Company’s ability to successfully manage the risks
associated with international operations. In addition, these
forward-looking statements and the information in this press
release 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 press release 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/20240801798340/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
Grafico Azioni Fresh Del Monte Produce (NYSE:FDP)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Fresh Del Monte Produce (NYSE:FDP)
Storico
Da Gen 2024 a Gen 2025
