The net sales for the third quarter of 2023 was $1,003 million

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Fresh Del Monte Produce Inc. Today, Fresh Del Monte Produce Inc. announced results from its financials for the third quarter as well as the 9 months that ended on September 29, 2023.

“We had a great performance for the beginning of the year 2023, thanks to better gross margins and a stronger adjusted EBITDA and an increase in earnings per share adjusted in comparison to the same period in the year prior. Additionally, we continued to deliver the value of shareholders by cutting the amount of debt we have, enhancing efficiencies as well as delivering innovation-driven and new products to market,” said Mohammad Abu-Ghazaleh Fresh Del Monte’s chairman and Chief Executive Chief Executive Officer.

“Our recent annual report on sustainability outlines our progress towards our sustainability goals across a variety of categories, including waste and shrinkage and goals achieved with initiatives that we believe can lead to sustainable expansion.”

The financial aspects of the 3rd quarter of 2023

The net sales for the third quarter of 2023 was $1,003.1 million as compared with $1,053.5 million for the preceding period. The variance in net sales was mostly due to smaller sales volumes of the fresh and value added product category and a decline in sales of other services and products segment because of a weaker global demand for our third-party shipping business. The main factors that offset the net sales variation were the higher prices of tropical fruit as well as fresh-cut fruit, and increased volume and selling prices of avocados.

The gross profit of this quarter was $74.4 million, which was lower than $88.0 million for the preceding period. The gross profit was affected by the lower volume of sales across the majority of merchandise, the stronger Costa Rican colon and Mexican peso as well as the cost of cleaning up and writing off inventory due to flooding at an annual production facility located in Greece caused by heavy rainfall which were partially compensated by the reduced distribution and ocean freight cost. With the exception of the cleaning and inventory writing-off costs caused by the flood and the resulting damage, adjusted net profit(1) in the 3rd quarter of 2023 was $82.8 million, as compared to $88.0 million for the previous period. There were no additional product-related costs in the prior year period.

Operating revenue for the 3rd period of 2023 totaled $25.4 million, compared to $51.0 million during the previous period. The variation in operating profit resulted from less gross profit and impairment costs resulting from poor yielding banana plants in the Philippines and also the destruction due to floods in Greece. With these factors removed, adjusted operating income stood at $34.3 million, as compared to $41.2 million for the preceding period.

Adjusted operating income excludes the $2.0 million profit on the selling the vessel, which is primarily due to the selling of a vessel carrying cargo. Prior to the year, Adjusted operating earnings exclude an $9.9 million benefit that was a one-time event associated with a decrease in the size of a North America environmental reserve.


More details:

Fresh Del Monte Produce Inc.

Email: communications@freshdelmonte.com

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