Fresh Del Monte Produce Inc. reported net sales of US$1.18 billion for the second quarter ended June 27, 2025, up from US$1.14 billion in the same period of 2024. The increase was attributed to higher per-unit selling prices in the fresh and value-added products and banana segments, favorable foreign exchange impacts in the euro, Japanese yen, and British pound, and tariff-related price adjustments in North America.
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Gross profit rose to US$120.1 million from US$113.2 million, with a gross margin of 10.2% compared to 9.9% a year earlier. The increase was led by fresh and value-added products, partially offset by higher production, procurement, and distribution costs, including tariff-related charges in North America. Adjusted operating income was US$68.8 million versus US$64.5 million, excluding an impairment charge related to a leased farm in Chile.
Net income was US$56.8 million compared with US$53.6 million, while adjusted net income rose to US$59.1 million from US$50.9 million.
Segment performance
Fresh and value-added products posted net sales of US$722.6 million, up from US$694.1 million, driven by higher per-unit pineapple prices, increased fresh-cut fruit sales volume and prices, foreign exchange gains, and tariff-related adjustments. This was partly offset by lower sales in fresh-cut vegetables following the sale of certain Fresh Leaf Farms assets in late 2024. Gross profit increased to US$84.9 million from US$77.9 million, with margins improving to 11.7%.
Banana net sales were US$410 million, up from US$394.3 million, due to higher prices across all regions, favorable euro exchange rates, and tariff-related adjustments in North America. Sales volume increased in the Middle East after the prior year's Red Sea disruption but declined in Asia and North America. Gross profit was US$30 million, slightly above the prior year, while gross margin declined to 7.3% from 7.6% due to higher production and distribution costs from adverse weather and tariffs.
Other products and services recorded net sales of US$49.9 million compared to US$51.3 million, with gross profit falling to US$5.2 million from US$5.5 million, mainly from lower poultry and meats sales and margins.
Cash flow, debt, and dividends
Net cash from operating activities for the first half of 2025 was US$159.2 million, up from US$143.7 million, driven by higher net income and accounts payable timing, partly offset by higher inventories. Long-term debt fell to US$201 million from US$285 million a year earlier, a 29% reduction.
A quarterly dividend of US$0.30 per share was declared on July 29, payable September 5 to shareholders of record on August 13. No shares were repurchased during the quarter, leaving US$142.4 million available under the US$150 million repurchase program.
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For more information:
Claudia Pou
Fresh Del Monte Produce
Tel: +1 305 520 8433
Email: [email protected]
www.investorrelations.freshdelmonte.com
