Fresh Del Monte Produce Inc. reported improved profitability for the first quarter of 2025, driven by growth in its fresh and value-added products segment, despite a slight decline in overall net sales.
Net sales for the quarter were $1.10 billion, down from $1.11 billion in the same period last year. The decline was mainly due to lower sales volume and unfavorable exchange rates in the banana segment. However, this was partially offset by higher per-unit prices in fresh and value-added products, particularly avocados and fresh-cut fruits in North America.
Gross profit rose by 12% year-over-year to $92.2 million, and gross margin improved to 8.4% from 7.4%. Operating income came in at $44.9 million, up slightly from $44.1 million. Adjusted operating income rose significantly to $44.1 million from $30.6 million last year, excluding one-time gains and charges.
Net income attributable to the company was $31.1 million, compared to $26.1 million in Q1 2024. Adjusted net income increased to $30.3 million from $15.8 million.
The fresh and value-added products segment generated $683.2 million in net sales, up slightly from the prior year, while gross profit rose to $69.3 million from $55.9 million. Gross margin in this segment improved to 10.1%, supported by higher selling prices in pineapples and melons.
Conversely, the banana segment reported a decline in net sales to $363.8 million from $379.5 million, impacted by weaker demand in Asia and weather-related disruptions in North America. Gross profit for the segment dropped to $16.8 million, with a lower margin of 4.6%.
The company also saw a modest increase in gross profit in its other products and services segment, driven by higher prices in poultry and meat.
Fresh Del Monte generated $46.1 million in cash from operating activities, up from $18.7 million in the prior-year quarter, largely due to favorable working capital changes. Long-term debt decreased to $233 million, down 5% from year-end 2024.
During the quarter, the company repurchased $7.6 million in shares and announced a quarterly cash dividend of $0.30 per share, payable on June 6, 2025.
The company emphasized its focus on operational efficiencies and product mix optimization to maintain growth momentum for the remainder of the year.
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For more information:
Claudia Pou
Fresh Del Monte Produce
Email: [email protected]
www.freshdelmonte.com
