Fresh Del Monte Produce Inc. Reports Third Quarter Earnings for Fiscal 2024

Oct 31, 2024

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

Fresh Del Monte Produce Inc. (NYSE: FDP), ("Fresh Del Monte" or the "Company") today reported financial results for the third quarter ended September 27, 2024.

"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 $1,019.5 million compared with $1,003.1 million in the prior-year period. The increase in net sales was primarily driven by higher net sales in the Company's fresh and value-added product segment due to higher sales volume, as well as increased per unit selling prices principally of avocado and pineapple, as a result of strong market demand. The increase was partially offset by a decrease in net sales in the Company's banana segment, primarily driven by competitive market pressures.

Gross profit for the third quarter of 2024 was $93.8 million compared with $74.4 million in the prior-year period. The increase in gross profit was primarily driven by higher sales volume and higher per unit selling prices in the Company's fresh and value-added product segment, partially offset by higher per unit production and procurement costs, lower sales volume in the Company's banana segment, and the negative impact of fluctuations in exchange rates, primarily related to a stronger Costa Rican colon. Gross margin for the third quarter of 2024 increased to 9.2% compared with 7.4% in the prior-year period.

Gross profit for the third quarter of 2024 included $0.6 million of other product-related charges, net, primarily as a result of $1.0 million of additional logistic and inventory write-offs incurred as a result of Hurricane Beryl during July 2024, partially offset by $0.6 million of insurance recoveries related to shipment disruptions in the Red Sea during the second quarter of 2024. Gross profit for the third quarter of 2023 included $8.4 million of other product-related charges, net, comprised primarily of an inventory write-off and clean-up costs related to the flooding of a seasonal production facility in Greece due to heavy rainstorms. Excluding the net impact from the other product-related charges, Adjusted gross profit (1) for the third quarter of 2024 was $94.4 million compared with $82.8 million in the prior-year period.

Operating income for the third quarter of 2024 was $53.9 million compared with $25.4 million in the prior-year period. The increase in operating income was primarily driven by higher gross profit combined with the higher gain on the sale of property, plant and equipment.

Operating income for the third quarter of 2024 included asset impairment and other charges, net, of $0.2 million due to heavy wind and rainstorms in Chile, $7.7 million gain from the sale of a warehouse in Chile and $0.3 million gain from the sale of an idle packing facility in Costa Rica. In the prior-year period, operating income included the $8.4 million of inventory write-off primarily due to severe flooding in Greece, a $2.5 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. Additionally, there was a $2.0 million gain from the sale of underutilized assets in South and Central America. Excluding the net impact from the other product-related charges, Adjusted operating income (1) was $46.5 million compared with $34.3 million in the prior-year period.

Other (income) expense, net, for the third quarter of 2024 was a gain of $0.1 million compared with a loss of $7.1 million in the prior-year period. The change was primarily due to the equity earnings of unconsolidated companies within the food and nutrition sector and lower foreign currency losses as compared with the prior-year period.

FDP net income (2) for the third quarter of 2024 was $42.1 million compared with $8.4 million in the prior-year period and Adjusted FDP net income (1) was $37.0 million compared with $17.2 million in the prior-year period. Adjusted FDP net income for the third quarter of 2024, excludes the above-mentioned adjustments and the associated $2.3 million tax effect. In the prior-year period, Adjusted FDP net income excludes the above-mentioned adjustments and the associated $0.1 million tax effect.

Third 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

 

September 27, 2024

 

September 29, 2023

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

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

September 27, 2024

 

September 29, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $623.7 million compared with $574.0 million in the prior-year period. The increase in net sales was primarily a result of higher sales volume, as well as higher per unit selling prices in the Company's avocado, pineapple, prepared food, and fresh-cut fruit product lines due to strong market demand. These increases were partially offset by lower net sales of vegetables due to lower sales volume as a result of strategic volume rationalization.

Gross profit for the third quarter of 2024 was $63.3 million compared with $36.2 million in the prior-year period. The increase in gross profit was primarily driven by higher net sales and lower per unit production costs of pineapple and fresh-cut fruit, partially offset by the negative impact of fluctuations in exchange rates, primarily a stronger Costa Rican colon. Gross margin increased to 10.1% compared with 6.3% in the prior-year period.

Gross Profit for the third quarter of 2024 included $0.2 million of other product-related charges, net, primarily as a result of $0.6 million of additional logistic and inventory write-offs incurred as a result of Hurricane Beryl during July 2024, partially offset by $0.6 million of insurance recoveries related to shipment disruptions in the Red Sea during the second quarter of 2024. Gross profit for the third quarter of 2023 included $8.4 million of other product-related charges due to severe flooding caused by heavy rainstorms in Greece that impacted a seasonal production facility.

Banana

Net sales for the third quarter of 2024 were $345.3 million compared with $384.7 million in the prior-year period. The decrease in net sales was primarily due to lower sales volume in the Company's North America region, due to competitive market pressures, and lower sales volume in the Company's Asia region, caused by decreased supply from the Philippines as a result of weather-related events. The decrease was partially offset by higher per unit selling prices in Asia, resulting from lower industry supply.

Gross profit for the third quarter of 2024 was $21.3 million compared with $31.9 million in the prior-year period. The decrease in gross profit was principally driven by lower net sales, higher per unit production costs, and the negative impact of fluctuations in exchange rates due to a stronger Costa Rican colon, partially offset by lower per unit ocean freight costs. Gross margin decreased to 6.2% compared with 8.3% in the prior-year period.

Gross profit for the third quarter of 2024 included $0.4 million of other product-related charges, primarily as a result of additional logistic and inventory write-offs incurred as a result of Hurricane Beryl during July 2024.

Other Products and Services

Net sales for the third quarter of 2024 were $50.5 million compared with $44.4 million in the prior-year period. The increase in net sales was primarily driven by higher per unit selling prices in the Company's poultry and meats business, as well as higher net sales in the Company's third-party ocean freight services business due to higher rates.

Gross profit for the third quarter of 2024 was $9.2 million compared with $6.3 million in the prior-year period. The increase in gross profit was primarily a result of higher per unit selling prices and lower per unit production costs in the Company's poultry and meats business. Gross margin increased to 18.2% compared with 14.2% in the prior-year period.

Cash Flows

Net cash provided by operating activities for the first nine months of 2024 was $187.2 million compared with $180.1 million in the prior-year period. The increase in net cash provided by operating activities was primarily driven by higher net income during the first nine months of 2024, as well as proceeds received from the termination of the Company's interest rate swap. The increase was partially offset by the impact of working capital fluctuations, primarily related to inventory.

Long Term Debt

Long-term debt decreased to $269.6 million at the end of the third quarter of 2024 from $401.0 million at the end of the third quarter of 2023, a decrease of approximately 33%.

Quarterly Cash Dividend

On October 29, 2024, the Company's Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on December 6, 2024, to shareholders of record on November 14, 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

 

Nine months ended

 

 

 

 

 

 

 

 

Statement of Operations:

September 27,
2024

 

September 29,
2023

 

September 27,
2024

 

September 29,
2023

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) :

 

 

 

 

 

 

 

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

Condensed Consolidated Balance Sheets

(U.S. dollars in millions) - (Unaudited)

 

 

 

 

 

September 27,
2024

 

December 29,
2023

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

 

 

 

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

Condensed Consolidated Statements of Cash Flows

(U.S. dollars in millions) - (Unaudited)

 

Nine months ended

 

September 27,
2024

 

September 29,
2023

Operating activities:

 

 

 

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 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 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:

  1. Are used by investors to measure a company's comparable operating performance;
  2. Are financial measurements that are used by lenders and other parties to evaluate creditworthiness; and
  3. 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

 

September 27,
2024

 

September 29,
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

$

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,
2024

 

September 29,
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

$

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

 

(U.S. dollars in millions) - (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

 

September 27,
2024

 

September 29,
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)

$

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,
2024

 

September 29,
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)

$

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

 

(U.S. dollars in millions) - (Unaudited)

 

 

 

 

 

 

 

 

 

Quarter ended

 

Nine months ended

 

September 27,
2024

 

September 29,
2023

 

September 27,
2024

 

September 29,
2023

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