Fresh del Monte Produce Inc. released its financial results for Q4 and the full fiscal year 2023 showing an increase in gross profit margin to 8.1% for FY 2023, from 7.7% in the previous year, despite a decrease in net sales. 

"We are pleased with many aspects of our full year 2023 results including our strong gross margins and cash flow which enabled us to have strong full-year adjusted earnings per share growth, reduce our long-term debt by $140 million to end the year with an adjusted leverage ratio of 1.7x and continue to return value to shareholders by increasing our dividend 25% for the second year in a row,”  said Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and chief executive officer.

“Our ability to control costs and sell underutilized assets for $120 million in 2023 allowed us to achieve the company's highest full-year gross profit and margin since 2016,” he added. 

The results note a decrease in net sales to $4,320.7 million for the full fiscal year 2023, down from $4,442.3 million in the prior year. 

The balance sheet shows a reduction in long-term debt to $400 million, a significant decrease from the previous year's $539.8 million. 

The cash flow statement highlights net cash from operating activities at $177.9 million, indicating a healthy cash generation capability.

The company also listed some of its strategic initiatives, including exploring alternatives for its Mann Packing operation and focusing on profitability improvements. 

An article by Yahoo Finance notes that Fresh Del Monte's performance analysis reveals a company adept at navigating the complexities of the global produce market. While the reported net loss and reduced net sales indicate areas for improvement, the company's increased gross profit margin and successful debt reduction reflect a strong underlying operational efficiency. 

The increase in the quarterly dividend also signals confidence in the company's financial stability.