Fresh Del Monte Q4 report: Growth in key areas despite banana segment challenges

USA – Fresh Del Monte Produce Inc. has released its financial results for the fourth quarter and the full fiscal year ending December 27, 2024.

The company showed improvements in key areas despite challenges in its banana segment, reporting a net income of U$142.2 million for the year.

Fresh Del Monte’s fresh and value-added products, particularly pineapples, avocados, and fresh-cut fruit, contributed significantly to growth.

Chairman and Chief Executive Officer Mohammad Abu-Ghazaleh noted, “Our full-year 2024 results reflect the effectiveness of our strategic focus and operational improvements. This success, achieved despite facing several challenges in 2024, was primarily driven by the exceptional performance of our fresh and value-added products segment, particularly pineapples, avocados, and fresh-cut fruit, which continue to fuel our growth and deliver strong gross margins.”

For the fourth quarter, net sales reached US$1,013.2 million, slightly above the US$1,008.6 million recorded in the previous year.

Higher selling prices in the fresh and value-added segment drove this increase, though declines in banana sales offset some gains. Gross profit rose to US$68.7 million from US$62.5 million, reflecting improved pricing and product performance.

Operating income stood at US$30.3 million, a significant turnaround from the prior year’s operating loss of US$113.4 million, which had been impacted by a non-cash asset impairment charge of US$133.8 million.

For the full year, net sales reached US$4,280.2 million, a slight decline from US$4,320.7 million in 2023. Lower banana sales and exchange rate fluctuations contributed to this decline, though fresh and value-added product sales remained strong.

Gross profit for 2024 increased to US$357.9 million from US$350.7 million in 2023, driven by lower ocean freight costs and better performance in the fresh and value-added products segment. However, this was offset by higher production and procurement costs.

Adjusted gross profit for the year stood at US$358.9 million, slightly above the US$354.5 million recorded in the previous period. This figure excludes charges linked to severance costs, additional logistics expenses, and inventory losses due to Hurricane Beryl.

In contrast, the previous year’s adjustments included inventory write-offs and costs related to flooding in Greece and the conflict in the Red Sea.

Operating income for the full year reached US$196.3 million, up from US$58.5 million in 2023. Adjusted operating income, which removes one-time charges, stood at US$158.6 million, slightly below the US$165.3 million reported last year. The decline was largely due to higher selling, general, and administrative expenses.

Fresh Del Monte reported a net income of US$142.2 million for 2024, a sharp improvement from the net loss of US$11.4 million in the prior year.

Adjusted net income stood at US$116.2 million, up from US$101.7 million in 2023, reflecting strong operational improvements and cost management.

Moreover, Fresh Del Monte was recently honored with the SEAL Business Sustainability Award in the Environmental Initiative category, marking its fourth win in five years.

The SEAL (Sustainable, Environmental, Achievement, and Leadership) Awards recognize companies that demonstrate a strong commitment to environmental sustainability through measurable actions.

The company was recognized for reaching its greenhouse gas reduction targets well ahead of schedule. Fresh Del Monte successfully reduced Scope 1 and Scope 2 emissions by 27.5%, achieving its goal seven years before its 2030 deadline.

Matt Harney, Chairperson and Founder of SEAL Awards, acknowledged the achievement, stating, “2025 represents our ninth-year SEAL Business Sustainability Award event. This year’s ESG award recipients follow a nine-year trendline of greater impact materiality and deeper granularity.”

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