Fresh Del Monte Produce, today announced financial results for the third quarter that ended on September 27, 2024.
“We are thrilled to share an impressive performance for the third quarter. The strategic emphasis on products with high margins and value has continued to produce good results. This demonstrates the effectiveness of our product developments and our dedication to ensuring long-term profit and value to our customers,” said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh. “As as we are steadfast, we’ve decided to take a stand to go with Mann Packing following our strategic review. This is a key step that is expected to boost profit as well as increase resilience and provide steady expansion.”
The highlights of the third quarter of 2024Net sales in the third quarter of 2024 was $1,019.5 million, compared to $1,003.1 million during the previous quarter. The growth in net sales was caused by increased gross sales of the Company’s valued-added and fresh product segments because of the increased volume of sales in addition to higher sales per unit, mostly of pineapple and avocado, because of the strong market demand. This was partly compensated by a drop of net sales within the company’s banana product segment which was mainly due to competitive market conditions.
The company’s gross profit for its three-quarter period ending March 31, 2024, was $93.8 million, up from $74.4 million during the previous period. The rise in profits was driven mainly by increased sales volumes and greater price per unit of selling for the new and value-added segment of products which was partially offset by the higher cost per unit of production and purchasing expenses, lower sales volumes within the company’s banana product segment as well as the negative effect on exchange rates of fluctuation in the context of an increase in the strength of the Costa Rican colon. Gross margins in the third quarter of 2024 grew by 9.2 percent, compared to 7.4 percent in the previous time frame.
The 3rd quarter in 2024 comprised $0.6 million in other related product expenses, net because of $1.0 million in additional logistic and inventory write-offs that were incurred due to the hurricane Beryl on July 20, 2024. These write-offs were partly compensating $0.6 million of recoveries from insurance caused by disruptions to shipping within the Red Sea during the second quarter of 2024. Profit from the 3rd quarter in 2023 comprised $8.4 million of product-related expenses, net. These consisted predominantly of a write-off for inventory as well as cleaning-up expenses related to the floods that flooded the production plant of a season located in Greece caused by heavy rainstorms. Inclusion of the net impact of the charges related to other products the adjusted gross profit (1) during the quarter ended March 31, 2024, was $94.4 million, as compared to $82.8 million during the preceding period.
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Claudia Pou
New Del Monte
Email: [email protected]
www.freshdelmonte.com