Fresh Del Monte Produce Inc. has reported financial results for the fourth quarter and the full fiscal year that ended December 27, 2024.

"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,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer.

Financial highlights for the fourth quarter of 2024

Net sales for the fourth quarter of 2024 were $1,013.2 million compared with $1,008.6 million in the prior-year period.

The increase in net sales was driven by higher net sales in the company's fresh and value-added products segment, primarily due to higher per-unit selling prices. The increase was partially offset by decreased net sales in the banana segment due to lower per-unit selling prices, reduced sales volume, and lower net sales in the company's other products and services segment.

Gross profit for the fourth quarter of 2024 was $68.7 million compared with $62.5 million in the prior-year period. The increase in gross profit was principally driven by higher net sales in the company's fresh and value-added products segment, partially offset by lower per unit selling prices and reduced sales volume in the banana segment, along with higher per unit production and procurement costs.

Operating income for the fourth quarter of 2024 was $30.3 million compared with an operating loss of $113.4 million in the prior-year period. The notable change in operating income is primarily attributable to a $133.8 million non-cash asset impairment charge in the prior-year period, mainly about long-lived assets in the Company's Mann Packing operations and goodwill in its prepared foods reporting unit. The one-time accounting adjustment significantly impacted the results of the previous year.

Financial highlights for the full fiscal year 2024:

For the full fiscal year 2024, net sales were $4,280.2 million compared with $4,320.7 million in the prior-year period. The decrease in net sales was primarily due to lower sales volume and per unit selling prices in the Company's banana segment, as well as the negative impact of exchange rate fluctuations, primarily versus the Japanese yen and Korean won, compared with the prior-year period. The decrease was partially offset by higher per-unit selling prices and sales volume in the Company's fresh and value-added products segment.

For the full fiscal year 2024, gross profit was $357.9 million compared with $350.7 million in the prior-year period. The increase in gross profit was primarily driven by higher net sales in the company's fresh and value-added products segment, along with lower ocean freight costs, partially offset by lower net sales in the company's banana segment, higher production and procurement costs, and the negative impact of fluctuations in exchange rates, primarily related to the Costa Rican colon and Japanese yen.

For the full fiscal year 2024, Adjusted gross profit was $358.9 million compared with $354.5 million in the prior-year period. Adjusted gross profit for the full fiscal year 2024 excludes $1.0 million of other product-related charges, primarily related to $1.2 million of severance charges from the outsourcing of certain functions in the company's fresh and value-added operations and $1.0 million of additional logistic costs and inventory write-offs incurred as a result of Hurricane Beryl during July 2024.

These were partially offset by a $1.7 million insurance recovery associated with severe flooding in the Company's Greece production facility in 2023. Adjusted gross profit in the prior-year period excluded other product-related charges of $3.8 million, primarily related to $1.5 million of inventory write-offs due to the sale of two distribution centers in Saudi Arabia, $1.4 million of inventory write-offs and clean-up costs, net of insurance recoveries, tied to the flooding in Greece, and $0.6 million of inventory write-offs due to rerouting of shipments as a result of the conflict in the Red Sea.

For the full fiscal year 2024, operating income was $196.3 million, compared with $58.5 million in the prior-year period. 

For the full fiscal year 2024, Adjusted operating income was $158.6 million compared with $165.3 million in the prior-year period. The comparison excludes other product-related charges, asset impairment charges, and gains on asset sales. The year-over-year decrease in adjusted operating income was primarily driven by higher selling and general and administrative expenses.

For the full fiscal year 2024, FDP net income was $142.2 million compared with a net loss of $11.4 million in the prior-year period, and Adjusted FDP net income was $116.2 million compared with $101.7 million in the prior-year period. Adjusted FDP net income for the full fiscal year 2024 and the prior-year period excludes those mentioned above, other product-related charges, asset impairment, and other charges and gain on sale of assets, net of tax effect.