Fresh Del Monte Produce Inc. Reports First Quarter Earnings for Fiscal 2025

Gross Profit Increased 12% Year-Over-Year, Reflecting Strong Execution in the Fresh and Value-Added Products Segment

Gross Margin Expanded to 8.4%, Compared with 7.4% in the Prior-Year Period

Committed to Long-Term Growth Through Innovation and Sustainability

Fresh Del Monte Produce Inc. (NYSE:FDP), ("Fresh Del Monte" or the "Company") today reported financial results for the first quarter ended March 28, 2025.

"We kicked off 2025 with continued momentum, building on the progress we made last year. In the first quarter, demand once again exceeded supply in our fresh and value-added products segment, highlighting the strength of our position in this key segment," said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh. "Our year-over-year improvement in gross profit—up 12%—and continued expansion in gross margin, up to 8.4% versus 7.4%—reflects the success of our fresh and value-added products strategy, supported by disciplined execution, optimized product mix, and ongoing operational efficiencies. As we look ahead, we remain committed to creating long-term value through innovation, sustainability, and operational excellence across our global business."

Financial highlights for the first quarter 2025:

Net sales for the first quarter of 2025 were $1,098.4 million compared with $1,107.9 million in the prior-year period. The decrease in net sales was primarily driven by lower net sales in the Company's banana segment primarily as a result of lower sales volume and the negative impact of fluctuations in exchange rates, partially offset by higher net sales in the Company's fresh and value-added products segment, driven by higher per unit selling prices.

Gross profit for the first quarter of 2025 was $92.2 million compared with $82.3 million in the prior-year period. The increase in gross profit for the quarter was primarily driven by higher net sales in the Company's fresh and value-added products segment, partially offset by higher per unit production, procurement, and distribution costs. Gross margin for the first quarter of 2025 increased to 8.4% compared with 7.4% in the prior-year period.

Adjusted gross profit⁽¹⁾ for the first quarter of 2025 was $92.2 million compared with $81.3 million in the prior-year period. Adjusted gross profit for the first quarter of 2024 included $1.0 million of other product-related (credits) charges, comprised primarily of an insurance recovery. No other product-related (credits) charges were recorded during the first quarter of 2025.

Operating income for the first quarter of 2025 was $44.9 million compared with $44.1 million in the prior-year period. The increase in operating income was primarily driven by higher gross profit, partially offset by a lower gain on disposal of property, plant and equipment, net.

Adjusted operating income⁽¹⁾ for the first quarter of 2025 was $44.1 million compared with $30.6 million in the prior-year period. Adjusted operating income for the first quarter of 2025 excludes a $0.8 million gain from the sale of idle land in Guatemala. In the prior-year period, Adjusted operating income excludes the above mentioned other product-related (credits) charges, $2.3 million in asset impairment and other charges, net, and a $14.8 million gain on disposal of property, plant and equipment.

Other expense, net, for the first quarter of 2025 was $2.8 million compared with $7.7 million in the prior-year period. The decrease was primarily due to lower foreign currency losses as compared to the prior-year period.

FDP net income⁽²⁾ for the first quarter of 2025 was $31.1 million compared with $26.1 million in the prior-year period and Adjusted FDP net income⁽¹⁾ was $30.3 million compared with $15.8 million in the prior-year period. Adjusted FDP net income for both periods excludes the above-mentioned adjustments and their tax effects.

First Quarter 2025 Business Segment Performance

Fresh and Value-Added Products

Net sales for the first quarter of 2025 were $683.2 million compared with $676.8 million in the prior-year period. The increase in net sales was primarily a result of higher per unit selling prices in the Company's avocado product line and higher sales volume and per unit selling prices in it's fresh-cut fruit product line in North America due to strong market demand. The increase was partially offset by lower net sales in the Company's fresh-cut vegetable and vegetable product lines due to strategic operational reductions in the fourth quarter of 2024, which included the sale of certain assets of Fresh Leaf Farms.

Gross profit for the first quarter of 2025 was $69.3 million compared with $55.9 million in the prior-year period. The increase in gross profit was primarily driven by higher per unit selling prices in the Company's pineapple and melon product lines, partially offset by higher per unit production, procurement, and distribution costs. Gross margin increased to 10.1% compared with 8.3% in the prior-year period.

Banana

Net sales for the first quarter of 2025 were $363.8 million compared with $379.5 million in the prior-year period. The decrease in net sales was primarily a result of lower sales volume and per unit selling prices in Asia due to a combination of lower market demand and excess industry supply, along with lower sales volume in North America due to lower industry supply and weather-related logistic disruptions. Additionally, net sales were negatively impacted by fluctuations in exchange rates due to a weaker Euro and Korean won. The decrease was partially offset by higher per unit selling prices in North America.

Gross profit for the first quarter of 2025 was $16.8 million compared with $21.8 million in the prior-year period. The decrease in gross profit was primarily driven by lower net sales and higher per unit production and procurement costs. Gross margin decreased to 4.6% compared with 5.7% in the prior-year period.

Other Products and Services

Net sales for the first quarter of 2025 were $51.4 million, in line with the prior-year period.

Gross profit for the first quarter of 2025 was $6.1 million compared with $4.6 million in the prior-year period. The increase in gross profit was primarily a result of higher per unit selling prices in the Company's poultry and meats business. Gross margin increased to 11.9% compared with 8.9% in the prior-year period.

Cash Flows

Net cash provided by operating activities for the first quarter of 2025 was $46.1 million compared with $18.7 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, lower levels of accounts receivable, and higher net income. The increase was partially offset by higher levels of inventory when compared to the prior-year period.

Long Term Debt

Long-term debt decreased to $233.0 million at the end of the first quarter of 2025, an $11 million or 5% reduction from $244.0 million at fiscal year-end 2024.

Quarterly Cash Dividend

On April 29, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on June 6, 2025, to shareholders of record on May 14, 2025.

Share Repurchase Program

During the first quarter of 2025, the Company repurchased $7.6 million or 253,850 shares of its common stock at an average price of $29.97 per share, as part of the $150.0 million share repurchase program. As of March 28, 2025, $142.4 million remained available under the current authorization.

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 other product-related (credits) 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 charges, net, gain on disposal of property, plant and equipment, net, and other product-related (credits) 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.

Conference Call and Webcast Data

Fresh Del Monte will host a conference call and simultaneous webcast at 11:00 a.m. Eastern Time today to discuss the first quarter 2025 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 Corporation II 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 high-margin, value-added products; our ability to streamline operations and the impact that may have on our profitability and future growth; our ability to generate value for shareholders, including through focusing on its strengths in pineapple, fresh-cut fruit, avocados and value-added products; our ongoing commitment to future growth, operational excellence and meeting evolving customer and consumer demands; our expectations regarding our pineapple varieties and related innovations, and our ability to expand production and meet the ongoing demand; our expectations regarding customer growth and the expansion and diversification of our product offerings; our expectations regarding our fresh-cut facilities; our expectations regarding our avocado and avocado-related products, as well as our ability to meet the growing demand from key customers and further drive innovation; our ability to strengthen our leadership, and the impact that may have on our business; the impact of recent and future weather-related events on our business, and our ability to recover insurance proceeds, if any, to cover any damage or expenses; our expectations for the tax rate; our commitment to maintaining a prudent capital structure and creating long-term value for shareholders; our expected capital expenditures in 2025; our expected segment results for the full year; our expected net sales and gross margin for the fresh and value-added segment; the impact of any strategic initiative to improve gross margin, including consolidating facilities, expanding fresh-cut facilities, managing product and procurement costs and expanding market presence and our anticipated sales volume regarding our banana segment, 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 and anticipated timing 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 severe weather conditions, crop disease, 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, (xiii) the Company's ability to successfully manage the risks associated with international operations, (xiv) the impact of severe weather conditions and natural disasters, such as flooding, hurricanes, earthquakes, and (xv) the adequacy of insurance coverage. 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.

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