Fresh Del Monte Produce Inc. has reported financial results for the second quarter ended June 30, 2023.
“We are pleased with our performance for the second quarter as net income more than doubled and gross profit and gross margin increased substantially when compared with the prior-year period – all while continuing to reduce our debt,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. “Our strategic efforts led by asset optimization, strategic partnerships, and product innovation continue to guide our decision-making process, which is beginning to reflect in our financial results.”
Financial highlights for the second quarter 2023:
Net sales for the second quarter of 2023 were $1,180.5 million compared with $1,211.9 million in the prior-year period. The net sales variance was primarily driven by the fresh and value-added products segment, specifically lower per unit pricing of avocados due to market conditions, and lower sales volume of non-tropical fruit. Net sales were partially offset by higher net sales in our banana segment, driven by both per unit pricing and volume.
Gross profit for the second quarter of 2023 was $116.8 million compared with $80.7 million in the prior-year period, an increase of 45%. Gross profit benefited from lower product and distribution costs in the fresh and value-added products segment combined with higher banana profitability.
Operating income for the second quarter of 2023 was $72.1 million compared with $34.3 million in the prior-year period and Adjusted operating income(2) was $67.9 million compared with $33.4 million in the prior-year period. The increase in operating income was due to higher gross profit and the gain on sale of our plastics business and other underutilized assets in South and Central America. Adjusted operating income excludes these asset sale gains, as well as $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 incremental expenses associated with the cybersecurity incident in early 2023. In the prior-year period, Adjusted operating income excludes asset impairment and other charges of $0.7 million and a $1.6 million gain on sale of assets.
Other expense, net for the second quarter of 2023 was $6.4 million compared with $2.6 million in the prior-year period. The increase principally resulted from higher foreign currency related losses, primarily related to unrealized losses on balance sheet remeasurement.
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For more information:
Monica Vicente
Fresh Del Monte Produce Inc.
Tel.: +1 305-520-8433