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CORAL GABLES, Fla.--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. to Report Third Quarter 2025 Financial Results. ...

Core Insights - Fresh Del Monte Produce reported Q2 FY2025 results that exceeded analyst expectations, with Non-GAAP earnings per share at $1.23 compared to the expected $0.95, and GAAP revenue of $1,182.5 million beating estimates by 2.2% [1][2] - Year-over-year, GAAP revenue increased by 3.8% from $1,139.7 million in Q2 2024, while Non-GAAP earnings grew by 16.0% compared to Q2 2024 [1][2] Financial Performance - Non-GAAP EPS for Q2 2025 was $1.23, up 16.0% from $1.06 in Q2 2024 [2] - GAAP revenue reached $1,182.5 million, a 3.8% increase from $1,139.7 million in Q2 2024 [2] - Gross profit (Non-GAAP) was $120.1 million, a 5.0% increase from $114.4 million in the prior-year period [2] - Operating income (Non-GAAP) rose to $68.8 million, up 6.7% from $64.5 million in Q2 2024 [2] - Adjusted EBITDA was $95.4 million, reflecting a 7.2% increase from $89.0 million in the prior-year period [2] Business Overview - Fresh Del Monte Produce operates in over 80 countries, primarily known for its Del Monte® brand, which includes a range of products such as fresh pineapples, bananas, avocados, packaged salads, and fresh-cut fruits [3] - The company's success is attributed to vertical integration, strong brand reputation, extensive distribution network, and ongoing innovation in product offerings [4] Segment Performance - Fresh and Value-Added products segment net sales rose to $722.6 million, a 4.1% increase from the prior-year quarter, with gross profit increasing by 9.0% to $84.9 million [5] - The Banana segment reported net sales of $410.0 million, up from $394.3 million in the prior-year period, although gross margin declined from 7.6% to 7.3% due to increased production and distribution costs [6] - The Other Products and Services segment experienced a 2.8% decline in net sales, primarily due to lower sales prices for poultry [7] Operational Efficiency - The vertically integrated model allowed the company to maintain product delivery and quality despite global shipping and tariff disruptions, with cash flow for the first six months at $159.2 million, up from $143.7 million last year [8] - Long-term debt was significantly reduced from $285.0 million in Q2 2024 to $201.0 million in Q2 2025, with cash and equivalents reaching $85.5 million [9] Product Innovation - The company continues to focus on health and sustainability trends, with innovations such as Del Monte Zero™ carbon-neutral pineapples and investments in avocado oil production [10][11] - The fresh-cut fruit business showed gains in both volume and margin, while avocado products are seen as a major growth avenue due to changing consumer diets [10] Future Outlook - Management projects net sales growth of 2% for FY2025, maintaining gross margin targets of 10–11% for Fresh and Value-Added products [12] - Operating cash flow is projected at $180–190 million, with planned capital expenditures between $80–90 million [12] - Strategic priorities remain focused on product innovation and disciplined capital management as the company navigates the second half of the year [13]

PART I: FINANCIAL INFORMATION This section presents the company's unaudited consolidated financial statements and management's analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements and detailed notes for Fresh Del Monte Produce Inc [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Summarizes the company's financial position, including assets, liabilities, and equity, at specific dates | Metric | June 27, 2025 (Millions USD) | December 27, 2024 (Millions USD) | Change (Millions USD) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | **Assets** | | | | | | Cash and cash equivalents | 85.5 | 32.6 | 52.9 | 162.3% | | Total current assets | 1,182.3 | 1,132.9 | 49.4 | 4.4% | | Total assets | 3,164.9 | 3,096.2 | 68.7 | 2.2% | | **Liabilities** | | | | | | Total current liabilities | 567.7 | 533.1 | 34.6 | 6.5% | | Long-term debt and finance leases | 205.2 | 248.9 | (43.7) | -17.6% | | Total liabilities | 1,086.6 | 1,089.4 | (2.8) | -0.3% | | **Shareholders' Equity** | | | | | | Total shareholders' equity | 2,078.3 | 2,006.8 | 71.5 | 3.6% | - Cash and cash equivalents significantly increased by **$52.9 million (162.3%)** from December 27, 2024, to June 27, 2025[12](index=12&type=chunk) - Long-term debt and finance leases decreased by **$43.7 million (-17.6%)** over the six-month period[12](index=12&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net income for the reported periods | Metric (Millions USD) | Q2 2025 | Q2 2024 | Change (QoQ) | % Change (QoQ) | 6M 2025 | 6M 2024 | Change (YoY) | % Change (YoY) | | :------------------------------------ | :------ | :------ | :----------- | :------------- | :------ | :------ | :----------- | :------------- | | Net sales | 1,182.5 | 1,139.7 | 42.8 | 3.8% | 2,280.8 | 2,247.5 | 33.3 | 1.5% | | Gross profit | 120.1 | 113.2 | 6.9 | 6.1% | 212.2 | 195.4 | 16.8 | 8.6% | | Operating income | 68.3 | 68.2 | 0.1 | 0.1% | 113.2 | 112.2 | 1.0 | 0.9% | | Net income attributable to Fresh Del Monte Produce Inc. | 56.8 | 53.6 | 3.2 | 6.0% | 87.9 | 79.7 | 8.2 | 10.3% | | Basic EPS | 1.19 | 1.12 | 0.07 | 6.3% | 1.83 | 1.67 | 0.16 | 9.6% | | Diluted EPS | 1.18 | 1.12 | 0.06 | 5.4% | 1.82 | 1.66 | 0.16 | 9.6% | | Dividends declared per ordinary share | 0.30 | 0.25 | 0.05 | 20.0% | 0.60 | 0.50 | 0.10 | 20.0% | - Net sales increased by **3.8% in Q2 2025** and **1.5% in the first six months of 2025** compared to the prior-year periods, primarily driven by higher per unit selling prices and favorable exchange rates[15](index=15&type=chunk) - Net income attributable to Fresh Del Monte Produce Inc. grew by **6.0% in Q2 2025** and **10.3% in the first six months of 2025**[15](index=15&type=chunk) - Dividends declared per ordinary share increased by **20%** for both the quarter and six-month periods[15](index=15&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Reports net income and other comprehensive income components, reflecting total non-owner changes in equity | Metric (Millions USD) | Q2 2025 | Q2 2024 | Change (QoQ) | 6M 2025 | 6M 2024 | Change (YoY) | | :------------------------------------------------ | :------ | :------ | :----------- | :------ | :------ | :----------- | | Net income | 57.4 | 53.3 | 4.1 | 89.3 | 79.4 | 9.9 | | Net unrealized (loss) gain on derivatives, net of tax | (6.3) | 1.0 | (7.3) | (8.7) | 6.8 | (15.5) | | Net unrealized foreign currency translation gain (loss) | 16.3 | (2.1) | 18.4 | 23.2 | (6.7) | 29.9 | | Net change in retirement benefit adjustment, net of tax | (0.6) | (0.4) | (0.2) | (0.9) | (1.0) | 0.1 | | Comprehensive income attributable to Fresh Del Monte Produce Inc. | 66.2 | 52.1 | 14.1 | 101.5 | 78.8 | 22.7 | - Comprehensive income attributable to Fresh Del Monte Produce Inc. increased by **$14.1 million (27.1%) in Q2 2025** and **$22.7 million (28.8%) in the first six months of 2025**[17](index=17&type=chunk) - A significant shift occurred in net unrealized foreign currency translation, moving from a loss in 2024 to a substantial gain in 2025 for both the quarter and six-month periods[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Outlines cash inflows and outflows from operating, investing, and financing activities | Metric (Millions USD) | 6M 2025 | 6M 2024 | Change (YoY) | % Change (YoY) | | :------------------------------------ | :------ | :------ | :----------- | :------------- | | Net cash provided by operating activities | 159.2 | 143.7 | 15.5 | 10.8% | | Net cash (used in) provided by investing activities | (24.4) | 1.6 | (26.0) | -1625.0% | | Net cash used in financing activities | (81.2) | (144.3) | 63.1 | 43.7% | | Net increase in cash and cash equivalents | 52.9 | 4.0 | 48.9 | 1222.5% | | Cash and cash equivalents, ending | 85.5 | 37.8 | 47.7 | 126.2% | - Net cash provided by operating activities increased by **$15.5 million (10.8%)** for the first six months of 2025, driven by higher net income and working capital fluctuations[22](index=22&type=chunk)[163](index=163&type=chunk) - Investing activities shifted from providing **$1.6 million** in cash in 6M 2024 to using **$24.4 million** in 6M 2025, primarily due to increased capital expenditures and investments in unconsolidated companies, partially offset by lower proceeds from asset sales[22](index=22&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Net cash used in financing activities decreased by **$63.1 million (43.7%)**, mainly due to lower net repayments on debt, despite increased dividends paid and share repurchases[22](index=22&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) [Consolidated Statements of Shareholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shows changes in shareholders' equity, including net income, dividends, and share repurchases | Metric (Millions USD) | June 27, 2025 | December 27, 2024 | Change | | :------------------------------------ | :------------ | :---------------- | :----- | | Total Fresh Del Monte Produce Inc. shareholders' equity | 2,060.4 | 1,990.5 | 69.9 | | Retained Earnings | 1,488.7 | 1,435.4 | 53.3 | | Accumulated Other Comprehensive Loss | (36.8) | (50.4) | 13.6 | - Total shareholders' equity increased by **$69.9 million** from December 27, 2024, to June 27, 2025, primarily driven by net income and a reduction in accumulated other comprehensive loss[25](index=25&type=chunk) - The company repurchased **253,850 ordinary shares** for **$7.6 million** during the six months ended June 27, 2025, under a **$150 million** stock repurchase program approved in February 2025[25](index=25&type=chunk)[113](index=113&type=chunk)[175](index=175&type=chunk) - Dividends paid totaled **$28.8 million** for the six months ended June 27, 2025, an increase from **$23.9 million** in the prior-year period[25](index=25&type=chunk)[115](index=115&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements [1. General](index=12&type=section&id=1.%20General) Describes Fresh Del Monte Produce Inc.'s business, operations, and reportable segments - Fresh Del Monte Produce Inc. is a vertically integrated producer, marketer, and distributor of fresh and fresh-cut fruit and vegetables, and prepared foods, operating globally under the Del Monte brand[29](index=29&type=chunk) - The business is organized into three reportable segments: Fresh and value-added products, Banana, and Other products and services[29](index=29&type=chunk)[33](index=33&type=chunk) [2. Recently Issued Accounting Pronouncements](index=13&type=section&id=2.%20Recently%20Issued%20Accounting%20Pronouncements) Discusses new accounting standards and their potential impact on the company's financial reporting - The FASB issued ASU 2024-03 (effective after Dec 15, 2026) requiring additional expense disaggregation disclosures, which the company is currently evaluating for impact[34](index=34&type=chunk) - ASU 2023-09 (effective after Dec 15, 2024) enhances income tax disclosures but is expected to have no impact on the company's financial condition, results of operations, or cash flows[35](index=35&type=chunk) [3. Investments in and Advances to Unconsolidated Companies](index=13&type=section&id=3.%20Investments%20in%20and%20Advances%20to%20Unconsolidated%20Companies) Details the company's equity method investments and related income | Metric (Millions USD) | June 27, 2025 | December 27, 2024 | | :------------------------------------ | :------------ | :---------------- | | Investments in and advances to unconsolidated companies | 54.1 | 39.9 | | Income from equity method investments (Q2) | 7.8 | 3.6 | | Income from equity method investments (6M) | 7.8 | 3.4 | | Unfunded commitments | 2.6 | N/A | - Investments in unconsolidated companies, primarily in food, nutrition, and agricultural technology, increased to **$54.1 million** as of June 27, 2025, from **$39.9 million** at December 27, 2024[36](index=36&type=chunk) - Proportionate share of income from these investments more than doubled for both the quarter and six months ended June 27, 2025, compared to the prior year[37](index=37&type=chunk) [4. Asset Impairment and Other Charges (Credits), Net](index=14&type=section&id=4.%20Asset%20Impairment%20and%20Other%20Charges%20%28Credits%29%2C%20Net) Reports non-recurring charges or credits related to asset impairments and other items | Item (Millions USD) | Q2 2025 | 6M 2025 | Q2 2024 | 6M 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Total asset impairment and other charges (credits), net | 0.6 | 0.6 | (1.3) | 1.0 | | Impairment of leased grape farm in Chile | 0.6 | 0.6 | — | — | | Insurance recovery related to South American warehouse | — | — | (2.0) | (2.0) | | Legal settlement | — | — | — | 1.8 | | California Air Resource Board reserve | — | — | — | 0.5 | - For Q2 and 6M 2025, asset impairment and other charges, net, totaled **$0.6 million**, primarily due to impairment of a leased grape farm in Chile[38](index=38&type=chunk) - In 6M 2024, charges included a **$1.8 million** legal settlement and a **$0.5 million** CARB reserve, partially offset by a **$2.0 million** insurance recovery[38](index=38&type=chunk) [5. Income Taxes](index=15&type=section&id=5.%20Income%20Taxes) Addresses the company's income tax provisions, significant tax disputes, and new tax regulations - The company is contesting **$237.2 million** in income tax deficiencies (including interest and penalties) related to transfer pricing in three foreign jurisdictions for tax years 2012-2021[39](index=39&type=chunk) - Real estate collateral totaling **$8.4 million** net book value (**$37.4 million** fair market value) has been registered in one foreign jurisdiction to secure injunctions against tax collection efforts[40](index=40&type=chunk) | Metric (Millions USD) | Q2 2025 | Q2 2024 | Change (QoQ) | 6M 2025 | 6M 2024 | Change (YoY) | | :------------------------------------ | :------ | :------ | :----------- | :------ | :------ | :----------- | | Income tax provision | 14.1 | 12.3 | 1.8 | 21.0 | 17.6 | 3.4 | - The income tax provision increased for both the quarter and six months ended June 27, 2025, primarily due to increased earnings in higher tax jurisdictions[46](index=46&type=chunk) - The EU's Pillar Two Directive, establishing a **15% minimum effective tax rate**, became effective for the company in fiscal year 2025, with an immaterial global minimum tax liability determined to date[44](index=44&type=chunk) - The U.S. enacted the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, with provisions effective from 2025-2027, and the company is currently assessing its impact[45](index=45&type=chunk) [6. Allowance for Credit Losses](index=16&type=section&id=6.%20Allowance%20for%20Credit%20Losses) Explains the company's provisions for uncollectible trade receivables and advances to suppliers | Metric (Millions USD) | June 27, 2025 | December 27, 2024 | | :------------------------------------ | :------------ | :---------------- | | Trade accounts receivable, net | 439.9 | 393.2 | | Allowance for trade receivables (total) | 37.5 | 35.0 | | Allowance for trade receivables (credit losses component) | 12.3 | 11.5 | | Allowance for advances to growers and suppliers | 16.1 | 12.1 | - The allowance for trade receivable credit losses increased to **$12.3 million** as of June 27, 2025, from **$11.5 million** at the beginning of the period[51](index=51&type=chunk) - The allowance for advances to growers and suppliers increased to **$16.1 million** as of June 27, 2025, from **$12.1 million** at the beginning of the period, with a provision for uncollectible amounts of **$4.0 million** for the six months[56](index=56&type=chunk) [7. Share-Based Compensation](index=17&type=section&id=7.%20Share-Based%20Compensation) Details expenses and terms related to the company's equity-based compensation plans | Metric (Millions USD) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Share-based compensation expense (RSUs/PSUs) | 2.5 | 2.2 | 4.9 | 2.8 | - Share-based compensation expense for RSUs and PSUs increased to **$4.9 million** for the six months ended June 27, 2025, from **$2.8 million** in the prior-year period[58](index=58&type=chunk) - The 2022 Omnibus Share Incentive Plan allows for equity-based awards, with PSUs vesting based on performance criteria and RSUs vesting annually over three years (or one year for Board members)[57](index=57&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) [8. Inventories, net](index=19&type=section&id=8.%20Inventories%2C%20net) Provides a breakdown of inventory components and changes over the period | Inventory Type (Millions USD) | June 27, 2025 | December 27, 2024 | | :------------------------------------ | :------------ | :---------------- | | Finished goods | 183.8 | 200.2 | | Raw materials and packaging supplies | 169.7 | 157.6 | | Growing crops | 198.7 | 237.5 | | Total inventories, net | 552.2 | 595.3 | - Total inventories, net, decreased to **$552.2 million** as of June 27, 2025, from **$595.3 million** at December 27, 2024, primarily due to lower finished goods and growing crops[65](index=65&type=chunk) [9. Debt and Finance Lease Obligations](index=19&type=section&id=9.%20Debt%20and%20Finance%20Lease%20Obligations) Outlines the company's debt structure, credit facilities, and lease obligations | Metric (Millions USD) | June 27, 2025 | December 27, 2024 | | :------------------------------------ | :------------ | :---------------- | | Senior unsecured revolving credit facility | 201.0 | 244.1 | | Finance lease obligations | 5.8 | 6.3 | | Total debt and finance lease obligations | 206.8 | 250.4 | | Long-term debt and finance lease obligations | 205.2 | 248.9 | - Total debt and finance lease obligations decreased to **$206.8 million** as of June 27, 2025, from **$250.4 million** at December 27, 2024, primarily due to reduced borrowings on the revolving credit facility[66](index=66&type=chunk) - The company entered into a new **$0.75 billion** syndicated senior unsecured revolving credit facility in February 2024, maturing on February 21, 2029, with **$549.0 million** available borrowings as of June 27, 2025[68](index=68&type=chunk)[72](index=72&type=chunk) - The credit facility includes financial covenants such as a Consolidated Leverage Ratio not exceeding **3.75 to 1.00** and a minimum Consolidated Interest Coverage Ratio of **2.25 to 1.00**, with which the company was in compliance as of June 27, 2025[70](index=70&type=chunk) [10. Commitments and Contingencies](index=21&type=section&id=10.%20Commitments%20and%20Contingencies) Discloses potential future obligations and legal matters - The estimated clean-up cost for the Kunia Well Site is **$2.7 million**, with **$2.5 million** accrued in noncurrent liabilities as of June 27, 2025[76](index=76&type=chunk) - The company settled a **$0.5 million** contingent reserve related to a California Air Resource Board (CARB) violation during Q1 2025[77](index=77&type=chunk) - A legal settlement of **$1.8 million** (net of insurance) for a legacy claim by a former employee was incurred during the first six months of 2024[78](index=78&type=chunk) [11. Earnings Per Share](index=22&type=section&id=11.%20Earnings%20Per%20Share) Presents basic and diluted earnings per share calculations | Metric | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Net income attributable to Fresh Del Monte Produce Inc. (Millions USD) | 56.8 | 53.6 | 87.9 | 79.7 | | Weighted average ordinary shares - Basic | 47,953,982 | 47,919,451 | 47,955,160 | 47,814,403 | | Weighted average ordinary shares - Diluted | 48,172,414 | 47,975,217 | 48,220,517 | 47,939,568 | | Basic EPS | 1.19 | 1.12 | 1.83 | 1.67 | | Diluted EPS | 1.18 | 1.12 | 1.82 | 1.66 | - Basic EPS increased to **$1.19 in Q2 2025** from **$1.12 in Q2 2024**, and to **$1.83 in 6M 2025** from **$1.67 in 6M 2024**[80](index=80&type=chunk) - Diluted EPS increased to **$1.18 in Q2 2025** from **$1.12 in Q2 2024**, and to **$1.82 in 6M 2025** from **$1.66 in 6M 2024**[80](index=80&type=chunk) [12. Retirement and Other Employee Benefits](index=22&type=section&id=12.%20Retirement%20and%20Other%20Employee%20Benefits) Details costs associated with the company's pension and post-retirement benefit plans | Metric (Millions USD) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | | Net periodic benefit costs | 2.8 | 3.5 | 5.6 | 7.0 | | Service cost | 1.6 | 1.8 | 3.2 | 3.6 | | Interest cost | 1.9 | 2.1 | 3.8 | 4.2 | | Expected return on assets | (0.8) | (0.8) | (1.6) | (1.7) | - Net periodic benefit costs for defined benefit pension and post-retirement plans decreased to **$2.8 million in Q2 2025** and **$5.6 million in 6M 2025**, from **$3.5 million** and **$7.0 million** respectively in the prior-year periods[81](index=81&type=chunk) [13. Business Segment Data](index=23&type=section&id=13.%20Business%20Segment%20Data) Provides financial performance data for the company's operating segments and geographic regions | Segment (Millions USD) | Q2 2025 Net Sales | Q2 2025 Gross Profit | Q2 2024 Net Sales | Q2 2024 Gross Profit | | :------------------------------------ | :------------------ | :------------------- | :------------------ | :------------------- | | Fresh and value-added products | 722.6 | 84.9 | 694.1 | 77.9 | | Banana | 410.0 | 30.0 | 394.3 | 29.8 | | Other products and services | 49.9 | 5.2 | 51.3 | 5.5 | | Total | 1,182.5 | 120.1 | 1,139.7 | 113.2 | | Segment (Millions USD) | 6M 2025 Net Sales | 6M 2025 Gross Profit | 6M 2024 Net Sales | 6M 2024 Gross Profit | | :------------------------------------ | :------------------ | :------------------- | :------------------ | :------------------- | | Fresh and value-added products | 1,405.7 | 154.1 | 1,370.8 | 133.9 | | Banana | 773.7 | 46.8 | 773.8 | 51.5 | | Other products and services | 101.4 | 11.3 | 102.9 | 10.0 | | Total | 2,280.8 | 212.2 | 2,247.5 | 195.4 | - Fresh and value-added products segment saw net sales increase by **4.1% in Q2 2025** and **2.5% in 6M 2025**, driven by higher per unit selling prices of pineapple, fresh-cut fruits, and avocados, along with favorable exchange rates and tariff-related price adjustments[84](index=84&type=chunk)[146](index=146&type=chunk)[153](index=153&type=chunk) - Banana segment net sales increased by **4.0% in Q2 2025** due to higher per unit selling prices and favorable Euro exchange rates, but slightly decreased in 6M 2025 due to lower sales volume in North America and Asia[84](index=84&type=chunk)[149](index=149&type=chunk)[156](index=156&type=chunk) | Geographic Region (Millions USD) | Q2 2025 Net Sales | Q2 2024 Net Sales | 6M 2025 Net Sales | 6M 2024 Net Sales | | :------------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | North America | 684.8 | 680.9 | 1,331.6 | 1,335.7 | | Europe | 252.6 | 225.9 | 474.4 | 435.2 | | Middle East | 109.2 | 93.6 | 215.6 | 192.9 | | Asia | 111.7 | 113.3 | 201.0 | 219.9 | | Other | 24.2 | 26.0 | 58.2 | 63.8 | | Total | 1,182.5 | 1,139.7 | 2,280.8 | 2,247.5 | | Product (Millions USD) | Q2 2025 Net Sales | Q2 2024 Net Sales | 6M 2025 Net Sales | 6M 2024 Net Sales | | :------------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | Fresh-cut fruit | 159.1 | 144.6 | 289.1 | 264.4 | | Fresh-cut vegetables | 73.1 | 85.0 | 141.3 | 166.4 | | Pineapples | 190.4 | 169.0 | 352.4 | 332.6 | | Avocados | 99.5 | 100.4 | 206.1 | 179.9 | | Non-tropical fruit | 51.5 | 47.3 | 103.1 | 107.9 | | Prepared foods | 72.7 | 66.9 | 143.6 | 136.4 | | Melons | 33.0 | 28.1 | 87.8 | 81.3 | | Vegetables | 21.1 | 28.0 | 36.8 | 53.5 | | Other fruit and vegetables | 22.2 | 24.8 | 45.5 | 48.4 | | Total fresh and value-added products | 722.6 | 694.1 | 1,405.7 | 1,370.8 | | Banana | 410.0 | 394.3 | 773.7 | 773.8 | | Other products and services | 49.9 | 51.3 | 101.4 | 102.9 | | Total | 1,182.5 | 1,139.7 | 2,280.8 | 2,247.5 | [14. Derivative Financial Instruments](index=25&type=section&id=14.%20Derivative%20Financial%20Instruments) Describes the company's use of derivatives for hedging and their fair value - The company uses derivative financial instruments, primarily foreign currency forward contracts, to hedge exposure to fluctuations in foreign exchange rates and variable interest rates[89](index=89&type=chunk)[94](index=94&type=chunk) | Foreign Currency Contract | Notional Amount (Millions) | | :------------------------ | :------------------------- | | Euro (EUR) | 102.3 | | British pound (GBP) | 2.9 | | Japanese yen (JPY) | 2,745.8 | | Costa Rican colon (CRC) | 45,965.6 | | Chilean peso (CLP) | 6,354.4 | | Kenyan shilling (KES) | 1,433.3 | | Mexican peso (MXP) | 277.0 | | Metric (Millions USD) | June 27, 2025 | December 27, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total asset derivatives | 2.8 | 0.3 | | Total liability derivatives | 9.7 | — | | Net fair value of foreign exchange contracts (liability) asset | (6.9) | 0.3 | - The net fair value of foreign exchange contracts shifted from a **$0.3 million** asset position at December 27, 2024, to a **$6.9 million** liability position at June 27, 2025[99](index=99&type=chunk)[104](index=104&type=chunk) - An interest rate swap was terminated in July 2024 for **$7.3 million** cash proceeds, with **$3.8 million** remaining in accumulated other comprehensive loss to be reclassified to earnings over the remaining life of the hedged debt[97](index=97&type=chunk)[98](index=98&type=chunk) [15. Fair Value Measurements](index=28&type=section&id=15.%20Fair%20Value%20Measurements) Explains the valuation methods and fair value of certain assets and liabilities - Derivative instruments (foreign currency and interest rate) are measured at fair value using observable market inputs (Level 2) via a discounted cash flow model[103](index=103&type=chunk) - The fair value of the banana reporting unit's goodwill and the prepared food reporting unit's goodwill and trade names are sensitive to differences between estimated and actual cash flows and changes in discount rates[107](index=107&type=chunk) | Asset Type (Millions USD) | June 27, 2025 | | :------------------------------------ | :------------ | | Assets held for sale | 11.8 | | - Idle farmland in Italy | 7.4 | | - Facilities and farmland in Central America | 2.0 | | - Two carrier vessels | 2.0 | | - Office and facilities in Chile | 0.4 | - Assets held for sale totaled **$11.8 million** as of June 27, 2025, primarily consisting of idle farmland in Italy and facilities/farmland in Central America[108](index=108&type=chunk) [16. Accumulated Other Comprehensive Loss](index=29&type=section&id=16.%20Accumulated%20Other%20Comprehensive%20Loss) Details changes in components of other comprehensive income/loss | Component (Millions USD) | Balance at Dec 27, 2024 | Net current period other comprehensive (loss) income | Balance at June 27, 2025 | | :------------------------------------ | :---------------------- | :--------------------------------------------------- | :----------------------- | | Cash Flow Hedges | 5.6 | (8.7) | (3.1) | | Foreign Currency Translation Adjustment | (45.2) | 23.2 | (22.0) | | Retirement Benefit Adjustment | (10.8) | (0.9) | (11.7) | | Total Accumulated Other Comprehensive Loss | (50.4) | 13.6 | (36.8) | - Accumulated other comprehensive loss improved from **$(50.4) million** at December 27, 2024, to **$(36.8) million** at June 27, 2025, primarily due to a significant net unrealized foreign currency translation gain[110](index=110&type=chunk) | Reclassified from AOCI (Millions USD) | 6M 2025 | 6M 2024 | Affected line item | | :------------------------------------ | :------ | :------ | :----------------- | | Foreign currency cash flow hedges (Net sales) | 5.4 | (0.8) | Net sales | | Foreign currency cash flow hedges (Cost of products sold) | (0.4) | 3.1 | Cost of products sold | | Interest rate swaps | (1.7) | (4.6) | Interest expense | | Actuarial losses | 0.2 | 0.4 | Other expense, net | [17. Shareholders' Equity](index=30&type=section&id=17.%20Shareholders%27%20Equity) Provides information on outstanding shares, stock repurchases, and dividends - As of June 27, 2025, there were **47,974,946 ordinary shares** issued and outstanding[112](index=112&type=chunk) - The Board approved a **$150 million** stock repurchase program on February 21, 2025, under which **253,850 shares** were repurchased for **$7.6 million** during the first six months of 2025[113](index=113&type=chunk)[175](index=175&type=chunk) | Dividend Payment Date | Cash Dividend per Ordinary Share | | :-------------------- | :----------------------------- | | June 6, 2025 | $0.30 | | March 28, 2025 | $0.30 | | June 7, 2024 | $0.25 | | March 29, 2024 | $0.25 | - Total dividends paid for the six months ended June 27, 2025, were **$28.8 million**, up from **$23.9 million** in the prior-year period[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis of financial performance, liquidity, and capital resources [Overview](index=31&type=section&id=Overview) Introduces Fresh Del Monte Produce Inc.'s business model, vision, and operating segments - Fresh Del Monte Produce Inc. is a leading vertically integrated producer, marketer, and distributor of fresh and fresh-cut fruit and vegetables, and prepared foods, operating globally under the Del Monte brand[117](index=117&type=chunk) - The company's vision is to inspire healthy lifestyles through wholesome and convenient products, with a strategy founded on six goals[118](index=118&type=chunk) - The business comprises three reportable segments: Fresh and value-added products, Banana, and Other products and services[117](index=117&type=chunk)[121](index=121&type=chunk) [Current Macroeconomic Environment](index=31&type=section&id=Current%20Macroeconomic%20Environment) Discusses external factors like geopolitical conflicts and trade policies impacting the business - Geopolitical conflicts, particularly shipping disruptions in the Red Sea, have negatively impacted the business through increased shipping times and logistical pressures[120](index=120&type=chunk) - Changes in U.S. trade policy, including new tariffs, have significantly increased the cost of products sold, though the company has largely mitigated this through increased selling prices in North America[122](index=122&type=chunk)[123](index=123&type=chunk) - The company is actively monitoring macroeconomic trends and region-specific matters to mitigate impacts on its business and financial condition[124](index=124&type=chunk) [Income Taxes](index=32&type=section&id=Income%20Taxes) Provides management's perspective on tax disputes, new tax directives, and their potential financial impact - The company is vigorously contesting **$237.2 million** in income tax deficiencies related to transfer pricing in three foreign jurisdictions for tax years 2012-2021, with ongoing administrative and judicial proceedings[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) - The EU's Pillar Two Directive, establishing a **15% minimum effective tax rate**, became effective for the company in fiscal year 2025, with an immaterial global minimum tax liability determined to date[130](index=130&type=chunk) - The recently enacted U.S. One Big Beautiful Bill Act (OBBBA) includes significant tax provisions effective from 2025-2027, and the company is currently assessing its impact[131](index=131&type=chunk) [RESULTS OF OPERATIONS](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) Analyzes consolidated financial performance, including net sales, gross profit, and net income | Metric (Millions USD) | Q2 2025 | Q2 2024 | Change (QoQ) | % Change (QoQ) | 6M 2025 | 6M 2024 | Change (YoY) | % Change (YoY) | | :------------------------------------ | :------ | :------ | :------ | :------------- | :------ | :------ | :------ | :------------- | | Net sales | 1,182.5 | 1,139.7 | 42.8 | 3.8% | 2,280.8 | 2,247.5 | 33.3 | 1.5% | | Gross profit | 120.1 | 113.2 | 6.9 | 6.1% | 212.2 | 195.4 | 16.8 | 8.6% | | Operating income | 68.3 | 68.2 | 0.1 | 0.1% | 113.2 | 112.2 | 1.0 | 0.9% | | Interest expense | 3.2 | 5.2 | (2.0) | -38.5% | 6.7 | 10.4 | (3.7) | -35.6% | | Other (income) expense, net | (6.2) | (2.3) | (3.9) | 169.6% | (3.4) | 5.4 | (8.8) | -163.0% | | Income tax provision | 14.1 | 12.3 | 1.8 | 14.6% | 21.0 | 17.6 | 3.4 | 19.3% | - Net sales increased by **3.8% in Q2 2025** and **1.5% in 6M 2025**, primarily due to higher per unit selling prices in fresh and value-added products and banana segments, and favorable exchange rates[133](index=133&type=chunk) - Gross profit increased by **6.1% in Q2 2025** and **8.6% in 6M 2025**, driven by higher net sales, partially offset by increased production, procurement, and distribution costs, including tariff-related charges[134](index=134&type=chunk) - Interest expense decreased significantly by **38.5% in Q2 2025** and **35.6% in 6M 2025** due to lower average debt balances[141](index=141&type=chunk) - Other (income) expense, net, shifted to a gain of **$6.2 million in Q2 2025** and **$3.4 million in 6M 2025**, primarily due to equity earnings from unconsolidated companies and lower foreign currency losses[142](index=142&type=chunk) [Financial Results by Segment](index=35&type=section&id=Financial%20Results%20by%20Segment) Examines the financial performance of each business segment, including sales and gross profit | Segment (Millions USD) | Q2 2025 Net Sales | Q2 2025 Gross Profit | Q2 2024 Net Sales | Q2 2024 Gross Profit | Q2 2025 Gross Margin | Q2 2024 Gross Margin | | :------------------------------------ | :------------------ | :------------------- | :------------------ | :------------------- | :------------------- | :------------------- | | Fresh and value-added products | 722.6 | 84.9 | 694.1 | 77.9 | 11.7% | 11.2% | | Banana | 410.0 | 30.0 | 394.3 | 29.8 | 7.3% | 7.6% | | Other products and services | 49.9 | 5.2 | 51.3 | 5.5 | 10.4% | 10.7% | | Segment (Millions USD) | 6M 2025 Net Sales | 6M 2025 Gross Profit | 6M 2024 Net Sales | 6M 2024 Gross Profit | 6M 2025 Gross Margin | 6M 2024 Gross Margin | | :------------------------------------ | :------------------ | :------------------- | :------------------ | :------------------- | :------------------- | :------------------- | | Fresh and value-added products | 1,405.7 | 154.1 | 1,370.8 | 133.9 | 11.0% | 9.8% | | Banana | 773.7 | 46.8 | 773.8 | 51.5 | 6.0% | 6.7% | | Other products and services | 101.4 | 11.3 | 102.9 | 10.0 | 11.1% | 9.7% | - Fresh and value-added products segment's gross margin increased to **11.7% in Q2 2025** and **11.0% in 6M 2025**, driven by higher net sales despite increased costs[148](index=148&type=chunk)[155](index=155&type=chunk) - Banana segment's gross margin decreased to **7.3% in Q2 2025** and **6.0% in 6M 2025**, primarily due to higher per unit production and procurement costs from adverse weather and increased distribution costs[150](index=150&type=chunk)[157](index=157&type=chunk) - Other products and services segment experienced a decrease in Q2 2025 net sales and gross profit due to lower per unit selling prices in poultry and meats, but saw an increase in 6M 2025 gross profit due to higher selling prices[151](index=151&type=chunk)[152](index=152&type=chunk)[158](index=158&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash flow, debt, and ability to meet financial obligations - Principal liquidity sources include cash from operations, **$796 million** in credit facilities (with **$577 million** available capacity), and **$85.5 million** in existing cash and cash equivalents[159](index=159&type=chunk) | Cash Flow Summary (Millions USD) | 6M 2025 | 6M 2024 | Change | | :------------------------------------ | :------ | :------ | :----- | | Net cash provided by operating activities | 159.2 | 143.7 | 15.5 | | Net cash (used in) provided by investing activities | (24.4) | 1.6 | (26.0) | | Net cash used in financing activities | (81.2) | (144.3) | 63.1 | | Net increase in cash and cash equivalents | 52.9 | 4.0 | 48.9 | | Cash and cash equivalents, ending | 85.5 | 37.8 | 47.7 | - Working capital increased by **$14.8 million** to **$614.6 million** at June 27, 2025, driven by higher cash and receivables, partially offset by lower inventory and higher accounts payable[164](index=164&type=chunk) - The company repurchased **253,850 shares** for **$7.6 million** under its **$150 million** stock repurchase program during the first six months of 2025[161](index=161&type=chunk)[175](index=175&type=chunk) - The company believes its current liquidity and cash flows will be sufficient to meet cash requirements and service debt for the next twelve months, while remaining in compliance with credit facility covenants[174](index=174&type=chunk) [Critical Accounting Policies and Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Highlights key accounting policies and estimates requiring significant management judgment - There were no material changes to the company's critical accounting policies or estimates during the second quarter of 2025, as compared to those disclosed in the Annual Report on Form 10-K for the fiscal year ended December 27, 2024[177](index=177&type=chunk) [Fair Value Measurements](index=40&type=section&id=Fair%20Value%20Measurements) Explains the valuation of financial instruments and assets held for sale - The fair value of foreign currency cash flow hedges shifted to a net liability of **$6.9 million** as of June 27, 2025, from a net asset of **$0.3 million** at December 27, 2024, due to weakening exchange rates and new hedges[178](index=178&type=chunk) - The company expects **$5.2 million** of net loss from cash flow hedges in accumulated other comprehensive loss to be transferred to earnings within the next 12 months[180](index=180&type=chunk) - The fair value of goodwill and trade names in the banana and prepared food reporting units are sensitive to estimated cash flows and discount rates, with potential for impairment if strategies to improve sales and profitability are unsuccessful[180](index=180&type=chunk)[181](index=181&type=chunk) [New Accounting Pronouncements](index=41&type=section&id=New%20Accounting%20Pronouncements) Summarizes recently issued accounting standards and their expected impact - Refer to Note 2 for a discussion of recently issued accounting pronouncements, including ASU 2024-03 (expense disaggregation) and ASU 2023-09 (income tax disclosures)[183](index=183&type=chunk) [Seasonality](index=41&type=section&id=Seasonality) Describes the seasonal nature of the company's business and its effect on financial results - Interim results are subject to significant seasonal variations, with a greater portion of net sales and gross profit historically realized during the first two quarters of the year due to fluctuating sales prices based on supply and demand[184](index=184&type=chunk) [Forward-Looking Statements](index=42&type=section&id=Forward-Looking%20Statements) Identifies statements about future performance and potential risks and uncertainties - The report contains forward-looking statements regarding future financial and operational performance, impact of tariffs, use of borrowed funds, share repurchases, geopolitical conflicts, inflationary pressures, market conditions, capital resources, derivative instruments, legal/tax matters, environmental cleanup, and business plans[186](index=186&type=chunk)[187](index=187&type=chunk) - These statements are subject to various risks, uncertainties, and assumptions, including inflationary pressures, trade restrictions, political/economic risks, severe weather, competition, foreign currency fluctuations, and potential asset impairments[187](index=187&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) States no material changes in market risk since the last annual report - No material changes in market risk have occurred since the disclosures in the Annual Report on Form 10-K for the fiscal year ended December 27, 2024[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Assesses the effectiveness of disclosure controls and internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 27, 2025[191](index=191&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 27, 2025[191](index=191&type=chunk) PART II. OTHER INFORMATION This section provides additional information beyond the financial statements, including legal and governance matters [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) Details ongoing legal and tax-related disputes the company is actively contesting - The company is actively contesting tax assessments related to transfer pricing in two foreign jurisdictions for audit years 2012-2016, with cases pending in administrative and judicial courts[193](index=193&type=chunk)[194](index=194&type=chunk) - In one jurisdiction, injunctions were granted to stay tax collection efforts, secured by real estate collateral[193](index=193&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) Reports on Rule 10b5-1 plans and executive compensation agreements - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended June 27, 2025[195](index=195&type=chunk) - Executive Retention and Severance Agreements were approved for named executive officers, providing severance payments and benefits upon qualifying termination or Change of Control Termination, subject to restrictive covenants and a clawback policy[196](index=196&type=chunk)[197](index=197&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) Lists all supplementary documents filed with the Form 10-Q - Exhibits include the Form of Executive Retention and Severance Agreement, CEO and CFO certifications, and Inline XBRL documents for the consolidated financial statements[202](index=202&type=chunk) SIGNATURES - The report is signed by Mohammed Abbas, Executive Vice President & Chief Operating Officer, and Monica Vicente, Senior Vice President & Chief Financial Officer, on July 30, 2025[206](index=206&type=chunk)

Financial Data and Key Metrics Changes - Net sales increased by 4% to $1.183 billion compared to $1.14 billion in the prior year [14] - Gross profit rose by 6% to $120 million from $113 million in the prior year, with gross margin expanding to 10.2% from 9.9% [6][15] - Net income attributable to Fresh Del Monte was $57 million, up from $54 million in the prior year, with adjusted diluted earnings per share increasing to $1.23 from $1.16 [18] Business Segment Data and Key Metrics Changes - Fresh and value-added products segment net sales increased by 4% to $723 million, driven by higher selling prices in the pineapple product line [19] - Banana segment net sales also rose by 4% to $410 million, primarily due to higher selling prices across regions [21] - Other products and services segment saw a slight decrease in net sales to $50 million from $51 million, attributed to lower selling prices in poultry and meats [22] Market Data and Key Metrics Changes - Consumer spending on tropical fruit has risen by 58% since February 2017, indicating a growing market relevance [8] - The company launched PingGlow in the UAE, marking its first sustained market entry for a variety in the Middle East [8] Company Strategy and Development Direction - The company is transitioning from legacy break box shipping vessels to container vessels in the Asia Pacific region to enhance operational efficiency [27] - There is a focus on expanding production capacity in Costa Rica and other regions, including Brazil and Africa, to meet growing demand [36][38] Management Comments on Operating Environment and Future Outlook - Management anticipates a continued shortage of pineapple supply into 2026, with strong market dynamics expected to persist [35][36] - The company remains confident in its ability to deliver on full-year objectives, expecting net sales growth of 2% year-over-year [28] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, equating to an annualized yield of 3.3% based on current share price [26] - The effective tax rate for the second quarter was 20%, reflecting increased earnings in higher tax jurisdictions [23] Q&A Session Summary Question: Update on pineapple supply and growth expectations - Management expects a continued shortage of supply through the end of the year and into next year, with strong market conditions for premium varieties [35][36] Question: Distribution growth for Pink Glow - Supply is currently constrained due to regulatory issues, but management anticipates increased acreage and supply in about 18 months [40][41] Question: Demand sources for fresh cut fruit - Demand is primarily coming from retail and convenience stores, with growth observed globally, not just in North America [45][46] Question: Impact of black sigatoka on banana supply - Costa Rica's export volume is down over 20% due to black sigatoka disease, which is expected to worsen [52] Question: Foreign exchange impact on revenue - The strengthening of the euro, British pound, and Japanese yen positively impacted net sales, while the Costa Rican colon presented headwinds [62][65]

Financial Performance - Net sales for Q2 2025 increased to $1,183 million compared to $1,140 million in the prior year, driven by higher net sales in fresh and value-added products and banana segments[18] - Gross profit for Q2 2025 increased to $120 million compared to $113 million in the prior year, driven by higher net sales in fresh and value-added products[19] - Gross margin increased to 102% in Q2 2025, compared to 99% in the prior year[21] - Adjusted EBITDA for Q2 2025 was $954 million compared to $890 million in the prior year[55] Segment Performance - Net sales in the fresh and value-added products segment increased, driven by higher pricing in pineapple and higher sales volume and pricing in fresh-cut fruit[23] - Gross margin in the fresh and value-added products segment increased to 117% compared to 112% in the prior year[23] - Net sales in the banana segment increased, driven by higher selling prices across all regions[29] - Gross margin in the banana segment decreased to 73% compared to 76% in the prior year[28] - Net sales in other products & services decreased slightly due to lower net sales in poultry and meats[31] - Gross margin in other products & services decreased to 104% compared to 107% in the prior year[31] Other Financial Data - The company's income tax rate was 20% compared to 19% in the prior year[34] - Net cash provided by operating activities was $159 million compared to $144 million in the prior year[34] - The company declared a dividend of $030 per share versus $025 per share in the prior year[34]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) Fresh Del Monte Produce Inc. reported strong second-quarter 2025 results, with net sales increasing by 4% and gross profit by 6% year-over-year, driven by robust demand for core products, especially proprietary pineapple varieties and fresh-cut offerings. The company maintained a strong balance sheet with healthy cash flow and reduced debt - Fresh Del Monte's Q2 2025 results reflect a strong strategy, with sales growth fueled by continued demand for core products, including proprietary pineapple varieties, and strong momentum in the fresh-cut business[2](index=2&type=chunk) - The company's balance sheet remained strong, supported by robust cash flow and low debt levels[1](index=1&type=chunk) Q2 2025 Financial Performance (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | Net Sales | $1,182.5 | $1,139.7 | 3.8% | | Gross Profit | $120.1 | $113.2 | 6.1% | | Gross Margin | 10.2% | 9.9% | +0.3 pp | | Operating Income | $68.3 | $68.2 | 0.1% | | Net Income (attributable to FDP) | $56.8 | $53.6 | 6.0% | [Adjusted Financial Performance](index=1&type=section&id=Adjusted%20Financial%20Performance) Adjusted financial metrics for Q2 2025 showed improved performance compared to the prior year, with adjusted gross profit and adjusted operating income increasing, reflecting the exclusion of certain non-recurring charges from the prior period Adjusted Financial Performance (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | Adjusted Gross Profit | $120.1 | $114.4 | 5.0% | | Adjusted Operating Income | $68.8 | $64.5 | 6.7% | | Adjusted FDP Net Income | $59.1 | $50.9 | 16.1% | - Adjusted gross profit for Q2 2024 included **$1.2 million** of other product-related charges, primarily due to Red Sea shipment disruptions and clean-up costs from flooding in Greece[5](index=5&type=chunk) - Other (income) expense, net, for Q2 2025 was a gain of **$6.2 million**, up from **$2.3 million** in the prior-year period, primarily due to equity earnings from unconsolidated companies in the food and nutrition sector[8](index=8&type=chunk) [Business Segment Performance and Selected Financial Data](index=3&type=section&id=Business%20Segment%20Performance%20and%20Selected%20Financial%20Data) [Fresh and Value-Added Products Segment](index=4&type=section&id=Fresh%20and%20Value-Added%20Products%20Segment) The Fresh and Value-Added Products segment experienced significant growth in Q2 2025, driven by higher selling prices for pineapple and increased sales volume and prices for fresh-cut fruit, despite strategic reductions in fresh-cut vegetables Fresh and Value-Added Products Segment Performance (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | Net Sales | $722.6 | $694.1 | 4.1% | | Gross Profit | $84.9 | $77.9 | 9.0% | | Gross Margin | 11.7% | 11.2% | +0.5 pp | - Net sales increase was primarily due to higher per unit selling prices in the pineapple product line, higher sales volume and per unit selling prices in fresh-cut fruit due to strong market demand, favorable exchange rates, and tariff-related price adjustments[13](index=13&type=chunk) - The increase was partially offset by lower net sales in fresh-cut vegetable and vegetable product lines due to strategic operational reductions, including the sale of certain assets of Fresh Leaf Farms[13](index=13&type=chunk) [Banana Segment](index=4&type=section&id=Banana%20Segment) The Banana segment saw an increase in net sales in Q2 2025, primarily from higher selling prices and favorable exchange rates, with sales volume recovery in the Middle East offsetting declines in Asia and North America. However, gross margin slightly decreased due to higher production and distribution costs Banana Segment Performance (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | Net Sales | $410.0 | $394.3 | 4.0% | | Gross Profit | $30.0 | $29.8 | 0.7% | | Gross Margin | 7.3% | 7.6% | -0.3 pp | - Net sales increase was driven by higher per unit selling prices across all regions, favorable exchange rates (Euro), and tariff-related price adjustments[15](index=15&type=chunk) - Sales volume increased in the Middle East, reflecting a recovery from prior-year shipment disruptions caused by the Red Sea conflict, but was partially offset by lower sales volume in Asia and North America[15](index=15&type=chunk) [Other Products and Services Segment](index=4&type=section&id=Other%20Products%20and%20Services%20Segment) The Other Products and Services segment experienced a slight decline in both net sales and gross profit in Q2 2025, primarily due to lower per unit selling prices in the poultry and meats business Other Products and Services Segment Performance (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :----------------------- | :--------------------- | :--------------------- | :------------- | | Net Sales | $49.9 | $51.3 | -2.7% | | Gross Profit | $5.2 | $5.5 | -5.5% | | Gross Margin | 10.4% | 10.7% | -0.3 pp | - The decrease in net sales and gross profit was primarily due to lower net sales in the Company's poultry and meats business, driven by lower per unit selling prices[17](index=17&type=chunk)[18](index=18&type=chunk) [Financial Position and Shareholder Returns](index=4&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) [Cash Flows](index=4&type=section&id=Cash%20Flows) Net cash provided by operating activities for the first six months of 2025 increased, primarily due to higher net income and favorable working capital fluctuations Net Cash Provided by Operating Activities (Millions USD) | Metric | Six Months Ended June 27, 2025 (Millions USD) | Six Months Ended June 28, 2024 (Millions USD) | YoY Change (%) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------- | | Net cash provided by operating activities | $159.2 | $143.7 | 10.8% | - The increase was primarily attributable to higher net income and working capital fluctuations, mainly driven by higher levels of accounts payable and accrued expenses, partially offset by higher levels of inventory[19](index=19&type=chunk) [Long Term Debt](index=5&type=section&id=Long%20Term%20Debt) The company significantly reduced its long-term debt by 29% year-over-year, strengthening its financial position Long-term Debt (Millions USD) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (%) | | :---------------- | :--------------------- | :--------------------- | :------------- | | Long-term debt | $201.0 | $285.0 | -29.5% | [Shareholder Returns](index=5&type=section&id=Shareholder%20Returns) Fresh Del Monte declared a quarterly cash dividend and maintained its share repurchase program, though no shares were repurchased in Q2 2025 - A quarterly cash dividend of **$0.30 per share** was declared on July 29, 2025, payable on September 5, 2025[22](index=22&type=chunk) - No shares were repurchased during the second quarter of 2025 under the **$150.0 million** share repurchase program, with **$142.4 million** remaining available[23](index=23&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations provide a detailed breakdown of revenues, costs, and profits for the second quarter and first six months of 2025 and 2024, highlighting increases in net sales and net income Condensed Consolidated Statements of Operations (Millions USD, except EPS) | Statement of Operations: | Quarter ended June 27, 2025 | Quarter ended June 28, 2024 | Six months ended June 27, 2025 | Six months ended June 28, 2024 | | :----------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Net sales | $1,182.5 | $1,139.7 | $2,280.8 | $2,247.5 | | Cost of products sold | $1,062.4 | $1,025.3 | $2,068.6 | $2,051.9 | | Gross profit | $120.1 | $113.2 | $212.2 | $195.4 | | Operating income | $68.3 | $68.2 | $113.2 | $112.2 | | Net income attributable to Fresh Del Monte Produce Inc. | $56.8 | $53.6 | $87.9 | $79.7 | | Basic EPS | $1.19 | $1.12 | $1.83 | $1.67 | | Diluted EPS | $1.18 | $1.12 | $1.82 | $1.66 | | Dividends declared per ordinary share | $0.30 | $0.25 | $0.60 | $0.50 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 27, 2025, shows an increase in total assets and shareholders' equity compared to December 27, 2024, with notable changes in cash and cash equivalents and a reduction in long-term debt Condensed Consolidated Balance Sheets (Millions USD) | Balance Sheet Item | June 27, 2025 (Millions USD) | December 27, 2024 (Millions USD) | | :----------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $85.5 | $32.6 | | Total current assets | $1,182.3 | $1,132.9 | | Total assets | $3,164.9 | $3,096.2 | | Accounts payable and accrued expenses | $503.0 | $476.0 | | Total current liabilities | $567.7 | $533.1 | | Long-term debt and finance leases | $205.2 | $248.9 | | Total liabilities | $1,086.6 | $1,089.4 | | Total shareholders' equity | $2,078.3 | $2,006.8 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement for the first six months of 2025 indicates a significant increase in net cash provided by operating activities and a net increase in cash and cash equivalents, despite net cash used in investing and financing activities Condensed Consolidated Statements of Cash Flows (Millions USD) | Cash Flow Activity | Six months ended June 27, 2025 (Millions USD) | Six months ended June 28, 2024 (Millions USD) | | :----------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $159.2 | $143.7 | | Net cash (used in) provided by investing activities | $(24.4) | $1.6 | | Net cash used in financing activities | $(81.2) | $(144.3) | | Net increase in cash and cash equivalents | $52.9 | $4.0 | | Cash and cash equivalents, ending | $85.5 | $37.8 | [Non-GAAP Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Fresh Del Monte uses various non-GAAP financial measures, such as Adjusted gross profit, Adjusted operating income, and Adjusted EBITDA, to provide a more comparable analysis of its underlying operating performance by excluding special items not indicative of core business operations - Non-GAAP measures like Adjusted gross profit, Adjusted operating income, and Adjusted FDP net income reflect adjustments for asset impairment, gain on disposal of property, plant and equipment, and other product-related charges[32](index=32&type=chunk) - EBITDA is defined as net income attributable to Fresh Del Monte Produce Inc. excluding interest expense, income taxes, depreciation and amortization, and share-based compensation expense. Adjusted EBITDA includes further adjustments for special items[32](index=32&type=chunk) - Management uses these metrics to evaluate period-over-period operating performance, for strategic planning, forecasting, and incentive compensation, as they exclude special items not indicative of the Company's core business[33](index=33&type=chunk)[34](index=34&type=chunk) [Non-GAAP Reconciliation Tables](index=10&type=section&id=Non-GAAP%20Reconciliation%20Tables) Detailed reconciliations are provided for various non-GAAP measures, including adjusted gross profit, operating income, net income, diluted EPS, and EBITDA, showing the impact of specific adjustments for both quarterly and year-to-date periods Q2 2025 Non-GAAP Reconciliation (Millions USD, except EPS) | Metric | As Reported | Adjustments | As Adjusted | | :----------------------- | :---------- | :---------- | :---------- | | Gross profit | $120.1 | $0.0 | $120.1 | | Operating income | $68.3 | $0.5 | $68.8 | | Net income attributable to FDP | $56.8 | $2.3 | $59.1 | | Diluted EPS | $1.18 | $0.05 | $1.23 | Six Months Ended June 27, 2025 Non-GAAP Reconciliation (Millions USD, except EPS) | Metric | As Reported | Adjustments | As Adjusted | | :----------------------- | :---------- | :---------- | :---------- | | Gross profit | $212.2 | $0.0 | $212.2 | | Operating income | $113.2 | $(0.3) | $112.9 | | Net income attributable to FDP | $87.9 | $1.5 | $89.4 | | Diluted EPS | $1.82 | $0.03 | $1.85 | Q2 2025 EBITDA and Adjusted EBITDA Reconciliation (Millions USD) | Metric | Q2 2025 | Q2 2024 | | :----------------------- | :------ | :------ | | Net income attributable to FDP | $56.8 | $53.6 | | EBITDA | $94.9 | $92.7 | | Adjusted EBITDA | $95.4 | $89.0 | | Adjusted EBITDA margin | 8.1% | 7.8% | Six Months Ended June 27, 2025 EBITDA and Adjusted EBITDA Reconciliation (Millions USD) | Metric | Six Months 2025 | Six Months 2024 | | :----------------------- | :-------------- | :-------------- | | Net income attributable to FDP | $87.9 | $79.7 | | EBITDA | $157.0 | $149.6 | | Adjusted EBITDA | $156.7 | $132.5 | | Adjusted EBITDA margin | 6.9% | 5.9% | [Company Information](index=13&type=section&id=Company%20Information) [Conference Call and Webcast](index=13&type=section&id=Conference%20Call%20and%20Webcast) Fresh Del Monte hosted a conference call and webcast to discuss its Q2 2025 financial results, progress, and outlook, with replay available online - A conference call and simultaneous webcast were held on July 30, 2025, at 11:00 a.m. Eastern Time to discuss Q2 2025 financial results[43](index=43&type=chunk) - The webcast can be accessed via the Company's Investor Relations home page and will be available for re-broadcast for one year[43](index=43&type=chunk) [About Fresh Del Monte Produce Inc.](index=13&type=section&id=About%20Fresh%20Del%20Monte%20Produce%20Inc.) Fresh Del Monte Produce Inc. is a leading global producer, marketer, and distributor of fresh and fresh-cut fruits and vegetables, known for its DEL MONTE® and MANN® brands, and recognized for its commitment to sustainability and trust - Fresh Del Monte Produce Inc. is a vertically integrated producer, marketer, and distributor of high-quality fresh and fresh-cut fruit and vegetables, and a leading producer and distributor of prepared food in Europe, Africa, and the Middle East[44](index=44&type=chunk) - The company markets products under the DEL MONTE® and MANN® brands, and is the first global marketer of fruits and vegetables to commit to the 'Science Based Targets' initiative[44](index=44&type=chunk) - Fresh Del Monte was ranked one of 'American's Most Trusted Companies' by Newsweek for 2022, 2023, and 2024, and named a Humankind 100 Company for two consecutive years[44](index=44&type=chunk) [Forward-looking Information](index=14&type=section&id=Forward-looking%20Information) This section contains forward-looking statements regarding the company's future plans and performance, emphasizing that actual results may differ due to various risks and uncertainties, including commodity costs, supply chain issues, weather, and regulatory changes - The press release contains forward-looking statements about future performance, including focus on high-margin products, operational streamlining, shareholder value creation, pineapple innovations, customer growth, and managing costs[45](index=45&type=chunk) - Actual plans and performance may differ materially due to risks such as elevated commodity and supply chain costs, execution of strategic growth plans, impact of tariffs, foreign currency fluctuations, asset impairments, Middle East conflict, and severe weather conditions[45](index=45&type=chunk) - All forward-looking statements are qualified by cautionary statements and risk factor disclosures in the Company's SEC filings, including the most recently filed Annual Report on Form 10-K[45](index=45&type=chunk) [Investor and Media Contacts](index=14&type=section&id=Investor%20and%20Media%20Contacts) Contact information is provided for investor relations and corporate communications inquiries - Contact information for investors is Christine Cannella, Vice President, Investor Relations, at Investors@freshdelmonte.com[46](index=46&type=chunk) - Contact information for media is Claudia Pou, Vice President, Global Head of Corporate Communications, at Communications@freshdelmonte.com[46](index=46&type=chunk)

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