• Net Sales: $198 million, down from $108 million in the prior year.
• Gross Profit: $92 million, up from $82 million in the prior year.
• Gross Margin: 8.4%, up from 7.4% in the prior year.
• Operating Income: $45 million, up from $44 million in the prior year.
• Net Income: $31 million, up from $26 million in the prior year.
• Diluted EPS: $0.64 per share, up from $0.55 in the prior year.
• Adjusted EBITDA: $61 million, 6% of net sales, up from $44 million, 4% in the prior year.
• Fresh and Value-Added Product Segment Net Sales: $683 million, up from $677 million in the prior year.
• Banana Segment Net Sales: $364 million, down from $380 million in the prior year.
• Other Products and Services Segment Net Sales: $51 million, in line with the prior year.
• Net Cash Provided by Operating Activities: $46 million, up from $19 million in the prior year.
• Long-Term Debt: $233 million, a 5% reduction from $244 million at fiscal year-end 2024.
• Quarterly Cash Dividend: $0.30 per share, payable on June 6, 2025.
• Share Repurchase: $7.6 million or 254,000 shares repurchased during the first quarter of 2025.

• Warning! GuruFocus has detected 7 Warning Signs with CPXWF.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fresh Del Monte Produce Inc (NYSE:FDP) reported a strong start to 2025 with significant year-over-year improvements in gross profit and gross margin, particularly in the fresh and value-added segment.
• The company has successfully leveraged its leadership in the pineapple category, with demand consistently exceeding supply.
• Fresh Del Monte Produce Inc (NYSE:FDP) has demonstrated operational resilience amidst global shipping disruptions, maintaining minimal delays in product movement.
• The acquisition of a majority stake in a Ugandan avocado oil producer is expected to reduce waste and enhance value in the avocado category.
• The company has a clear vision for 2025-2027, focusing on quality, innovation, and sustainability, with strategic initiatives aimed at long-term value creation.

Negative Points

• Net sales in the banana segment decreased due to lower sales volume and unfavorable exchange rate fluctuations.
• The company faced higher per unit production, procurement, and distribution costs, which partially offset the increase in gross profit.
• There is ongoing concern about the impact of tariffs and geopolitical developments, which could affect future financial performance.
• Fresh Del Monte Produce Inc (NYSE:FDP) experienced lower net sales in the fresh cut vegetable and vegetable product lines due to strategic operational reductions.
• The banana segment's gross margin decreased to 4.6% from 5.7% in the prior year, driven by lower net sales and higher costs.

Q & A Highlights

Q: Can you discuss the demand trends in the produce category and what you expect in the near future? A: Mohammad Abu-Ghazaleh, Chairman and CEO, stated that there is a continuous solid demand in the fresh produce sector, with no reductions in consumption. He believes this trend will continue due to the reasonably priced nature of the segment. The current market disruptions may also present opportunities for the company.

Q: Are logistical issues affecting smaller players in the industry, and how is Fresh Del Monte positioned? A: Mohammad Abu-Ghazaleh explained that logistical disruptions have disadvantaged smaller and medium-sized companies. Fresh Del Monte's fully integrated supply chain provides a significant advantage, allowing them to fulfill customer demands without interruptions.

Q: How is Fresh Del Monte handling the 10% baseline tariffs? A: The company is mitigating the tariff impact through cooperative efforts with buyers to avoid negatively affecting consumers. This approach benefits both buyers and sellers.

Q: How is the avocado segment performing, and what are the future expectations? A: Avocados are performing well, with growth driven by diversified sourcing from countries like Peru and Colombia. The segment is expected to continue growing, and other new businesses are also showing potential for significant future impact.

Q: What is driving the current short supply of pineapples, and how long will it take to normalize? A: The increased demand and consumption of pineapples are the main factors behind the short supply. Pineapples remain cost-effective compared to other fruits, and their health benefits contribute to rising consumption. The company expects this trend to continue.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.