Fresh Del Monte faces mixed results in Q2 report amid sustainability success
USA – Fresh Del Monte Produce Inc. has reported a decline in net sales for the second quarter of 2024, attributed mainly to lower sales volume and per-unit prices for bananas.
According to the financial report, the company’s net sales fell to USD1,139.7 million from USD 1,180.5 million in the same period last year.
Gross profit also decreased slightly, down just over USD 3 million. This drop resulted from reduced net sales, increased production, and higher procurement costs driven by adverse weather conditions in Central America and the Philippines.
The company’s adjusted gross profit was USD 114.4 million, compared to USD 116.8 million in the previous year.
Despite these challenges, Fresh Del Monte saw an increase in gross profit from its fresh and value-added products. The gross profit for these items rose to USD 77.9 million, up from USD 62.1 million last year. The company’s gross margin improved to 11.2%, up from 9.2% in the prior-year period.
Banana sales experienced a significant decline, with net sales falling to USD 394.3 million from USD 448.8 million.
This decrease was attributed to competitive pressures in North America, reduced sales volume in Asia, and fluctuations in exchange rates, particularly a weaker Japanese yen.
The gross profit for bananas dropped to USD 29.8 million from USD 50.5 million, with the gross margin falling to 7.6% from 11.3%.
2024 SEAL Business Sustainability Award
In a notable achievement, Fresh Del Monte received the 2024 SEAL Business Sustainability Award for its JUNTOS Project, recognized in the Environmental Initiative category.
The JUNTOS Project, which started in 2021 in collaboration with the German Development Cooperation (GIZ), focuses on landscape restoration and sustainable development in Costa Rica and Guatemala.
The project has successfully reforested 348 hectares of land, proposed over 400 hectares for wildlife refuges, and set aside more than 10,000 hectares for biodiversity conservation. It also aims to educate local communities on sustainable practices and conservation.
“We are honored to be recognized by the SEAL Awards and are committed to being a sustainable business leader,” said Hans Sauter, Fresh Del Monte’s Chief Sustainability Officer.
“Through the JUNTOS Project, we have completed significant reforestation and conservation efforts that will benefit local communities for years to come.”
Matt Harney, Chairperson and Founder of the SEAL Awards, praised the integration of technology, design, and innovation in driving sustainable impact.
Fresh Del Monte’s focus on reducing emissions, minimizing food waste, and adopting smart farming practices demonstrates its commitment to sustainability.
This accolade marks the company’s third SEAL Award, highlighting its ongoing dedication to environmental stewardship and sustainable development.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
Fresh Del Monte faces mixed results in Q2 report amid sustainability success
USA – Fresh Del Monte Produce Inc. has reported a decline in net sales for the second quarter of 2024, attributed mainly to lower sales volume and per-unit prices for bananas.
According to the financial report, the company’s net sales fell to USD1,139.7 million from USD 1,180.5 million in the same period last year.
Gross profit also decreased slightly, down just over USD 3 million. This drop resulted from reduced net sales, increased production, and higher procurement costs driven by adverse weather conditions in Central America and the Philippines.
The company’s adjusted gross profit was USD 114.4 million, compared to USD 116.8 million in the previous year.
Despite these challenges, Fresh Del Monte saw an increase in gross profit from its fresh and value-added products. The gross profit for these items rose to USD 77.9 million, up from USD 62.1 million last year. The company’s gross margin improved to 11.2%, up from 9.2% in the prior-year period.
Banana sales experienced a significant decline, with net sales falling to USD 394.3 million from USD 448.8 million.
This decrease was attributed to competitive pressures in North America, reduced sales volume in Asia, and fluctuations in exchange rates, particularly a weaker Japanese yen.
The gross profit for bananas dropped to USD 29.8 million from USD 50.5 million, with the gross margin falling to 7.6% from 11.3%.
2024 SEAL Business Sustainability Award
In a notable achievement, Fresh Del Monte received the 2024 SEAL Business Sustainability Award for its JUNTOS Project, recognized in the Environmental Initiative category.
The JUNTOS Project, which started in 2021 in collaboration with the German Development Cooperation (GIZ), focuses on landscape restoration and sustainable development in Costa Rica and Guatemala.
The project has successfully reforested 348 hectares of land, proposed over 400 hectares for wildlife refuges, and set aside more than 10,000 hectares for biodiversity conservation. It also aims to educate local communities on sustainable practices and conservation.
“We are honored to be recognized by the SEAL Awards and are committed to being a sustainable business leader,” said Hans Sauter, Fresh Del Monte’s Chief Sustainability Officer.
“Through the JUNTOS Project, we have completed significant reforestation and conservation efforts that will benefit local communities for years to come.”
Matt Harney, Chairperson and Founder of the SEAL Awards, praised the integration of technology, design, and innovation in driving sustainable impact.
Fresh Del Monte’s focus on reducing emissions, minimizing food waste, and adopting smart farming practices demonstrates its commitment to sustainability.
This accolade marks the company’s third SEAL Award, highlighting its ongoing dedication to environmental stewardship and sustainable development.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.