Fresh Del Monte Produce Inc. has reported financial results for the first quarter ended March 29, 2024.
"We are pleased with the ongoing momentum in our higher-margin fresh and value-added segment. During the first quarter of 2024, this prioritized area of our business delivered 5% revenue growth driven by our strategic initiatives around distribution, pricing, and premiumization. While service level issues and competitive market pressures in North America and Europe reduced our banana revenue, we continued to generate very strong cash flow, which fuels our growth strategy tied to innovation around fresh-cut and pineapples," said Mohammad Abu-Ghazaleh, Fresh Del Monte's Chairman and CEO.
"We further enhanced our pineapple program with the release of two new products this quarter. Furthermore, our leadership team remains focused on operational excellence, cost discipline, and strategic capital allocation to further improve profitability across all areas of our business. With our diverse product portfolio, strong brand recognition, and unwavering commitment to innovation, we believe we are well-positioned to generate sustainable value for our shareholders."
Financial highlights for the first quarter 2024
Net sales for the first quarter of 2024 were $1,107.9 million, compared with $1,128.5 million in the prior-year period. The decrease in net sales was a result of lower banana net sales, driven by lower volume and pricing, and lower net sales in the other products and services segment. These were partially offset by an increase in net sales in the fresh and value-added products segment, driven by higher overall sales volume and pricing in the segment.
Gross profit for the first quarter of 2024 was $82.3 million, compared with $97.0 million in the prior-year period. Gross profit was impacted by lower overall net sales, higher production and procurement costs, and the negative impact of fluctuations in exchange rates, partially offset by lower ocean freight and distribution costs. Gross profit in the first quarter of 2024 includes a $1.0 million net credit related to insurance recoveries associated with damages tied to the flooding of a seasonal production facility in Greece during the third quarter of 2023, partially offset by severance charges from the outsourcing of certain functions within our fresh and value-added operations. Excluding the net impact from the other product-related credits related to the insurance recoveries and severance payout, Adjusted gross profit for the first quarter of 2024 was $81.3 million, compared with $98.8 million in the prior-year period. The prior-year period excludes $1.8 million of other product-related charges, primarily related to the sale of two distribution centers in the Middle East.
For more information: 
Monica Vicente
Fresh Del Monte Produce Inc.
Tel.: +1 305-520-8433
freshdelmonte.com