Fresh Del Monte Produce Inc.'s second-quarter earnings report shows that the company's net sales decreased slightly due to lower sales volume and lower per-unit price of bananas. Net sales for the second quarter of 2024 were $1,139.7 million compared with $1,180.5 million in the prior year period.

Gross profit for the second quarter decreased by a little over $3 million due to lower net sales, higher per-unit production, and procurement costs driven by adverse weather, higher temperatures, and low rainfall in Central America and the Philippines. 

The company's adjusted gross profit for the second quarter of 2024 was $114.4 million compared with $116.8 million in the prior-year period.

Del Monte reported that fresh and value-added product gross profit increased mainly due to higher per-unit production and costs of avocados. For the second quarter of 2024, gross profit was $77.9 million compared with $62.1 million in the prior year period.

According to the report, gross margin increased to 11.2%, compared with 9.2% in the prior-year period.

Banana net sales saw a steep decrease due to lower sales volume in North America, attributed by the report to competitive market pressures and lower sales volume and per unit selling prices in Asia, as well as the negative impact of fluctuations in exchange rates, primarily due to a weaker Japanese yen.

Banana net sales for the second quarter of 2024 were $394.3 million compared with $448.8 million in the prior-year period.

The fruit's gross profit also saw a significant decrease, principally driven by lower net sales higher production and procurement costs, and fluctuating exchange rates due to a stronger Costa Rican currency. The company reports that the return was $29.8 million compared with $50.5 million in the prior-year period. 

Gross margin decreased to 7.6% compared with 11.3% in the prior year period.