UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ——————————— FORM 10-Q ——————————— (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 27, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 333-07708 (Commission file number) ——————————— FRESH DEL MONTE PRODUCE INC. (Exact Name of Registrant as Specified in Its Charter) — ...

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]

Fresh Del Monte Produce Inc. Reports Second Quarter Earnings for Fiscal 2025 Financial highlights for the second quarter 2025: Net sales for the second quarter of 2025 were $1,182.5 million compared with $1,139.7 million in the prior-year period. The increase in net sales was primarily driven by higher net sales in the Company's fresh and value- added products and banana segments due to higher per unit selling prices and the favorable impact of fluctuations in exchange rates, primarily related to the Euro, ...

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Financial Performance - Net sales decreased slightly to $1098 million from $1108 million in the prior year[22] - Gross profit increased to $92 million from $82 million in the prior year[23] - Adjusted operating income increased to $44 million from $31 million in the prior year[24] - Adjusted net income increased to $30 million from $16 million in the prior year[24] - Adjusted diluted EPS increased to $063 from $034 in the prior year[24] - Adjusted EBITDA increased to $61 million from $44 million in the prior year[24] Segment Performance - Fresh and value-added products gross margin increased to 101% from 83%[31] - Banana gross margin decreased to 46% from 57%[37] - Other products & services gross margin increased to 119% from 89%[39] Financial Position - Net cash provided by operating activities was $46 million compared to $19 million in the prior year[42] - Long-term debt was $233 million compared to $244 million at the end of the prior year[42] - Adjusted leverage ratio was 086x compared to 177x in the prior year[42] - Capital spending was $10 million compared to $13 million in the prior year[42] - Dividend declared was $030 per share compared to $025 per share in the prior year[42]

Financial Performance - Net sales for Q1 2025 were $1,098.4 million, a decrease from $1,107.9 million in Q1 2024, primarily due to lower sales in the banana segment and negative exchange rate fluctuations [124]. - Gross profit for Q1 2025 increased to $92.2 million from $82.3 million in Q1 2024, driven by higher per unit selling prices in the fresh and value-added products segment [125]. - Fresh and value-added products segment net sales rose to $683.2 million in Q1 2025 from $676.8 million in Q1 2024, supported by higher avocado prices and fresh-cut fruit sales [133]. - Banana segment net sales fell to $363.8 million in Q1 2025 from $379.5 million in Q1 2024, due to lower sales volume and prices in Asia and North America [136]. - Net sales for Q1 2025 were $51.4 million, slightly down from $51.6 million in the prior-year period, primarily due to lower sales in third-party ocean freight services [138]. - Gross profit increased to $6.1 million in Q1 2025 from $4.6 million in the prior-year period, with gross margin rising to 11.9% from 8.9% [139]. Expenses and Costs - Selling, general and administrative expenses decreased by $2.6 million in Q1 2025 compared to Q1 2024, attributed to lower professional fees and promotional activities [127]. - The company incurred approximately $0.3 million in additional costs due to a 25% tariff on imports from Mexico during Q1 2025, which was later suspended [113]. - The company expects a material decrease in gross profit for the remainder of 2025 if it cannot successfully increase selling prices to customers due to rising costs from tariffs [115]. Cash Flow and Capital Resources - Net cash provided by operating activities was $46.1 million for Q1 2025, an increase of $27.4 million compared to $18.7 million in Q1 2024 [144]. - Net cash used in investing activities was $8.8 million in Q1 2025, primarily due to capital expenditures of $10.0 million for operations and production facilities [146]. - Net cash used in financing activities was $34.5 million in Q1 2025, which included dividends paid of $14.4 million and share repurchases of $7.6 million [148]. - As of March 28, 2025, the company had $550.5 million in unused borrowing capacity under its credit facility [154]. - Working capital increased to $607.5 million as of March 28, 2025, compared to $599.8 million at the end of 2024 [145]. - The 2024 Amended Credit Facility allows for an accordion feature permitting increases in revolving credit or term loans up to $300 million [151]. - The company maintained compliance with all covenants in the 2024 Amended Credit Facility as of March 28, 2025 [152]. Tax and Legal Matters - The company is contesting tax deficiencies totaling approximately $235.7 million related to transfer pricing for tax years 2012 through 2021 [117]. - The company registered real estate collateral with a fair market value of approximately $37.8 million in connection with ongoing tax disputes [118]. Risks and Future Outlook - Potential impairment of goodwill may occur if the fair value of the reporting unit is less than its carrying value, influenced by future changes in financial projections and discount rates [163]. - The Trump administration announced a baseline tariff of 10% on products from all countries, causing volatility in U.S. equity and bond markets, which may affect projected cash flows [163]. - Seasonal sales price fluctuations historically result in greater net sales and gross profit during the first two quarters of the year [165]. - Forward-looking statements indicate expectations regarding future financial performance, operational performance, and the impact of tariffs and governmental trade restrictions [168]. - The company anticipates inflationary pressures on raw materials and increased costs for products such as bananas, pineapples, and avocados [168]. - The company is exposed to risks from geopolitical conflicts, including shipping disruptions due to the Red Sea conflict [168]. - The adequacy of capital resources is expected to be sufficient to service outstanding debt over the next twelve months [168]. - The company faces risks related to crop diseases, particularly the Tropical Race 4 affecting banana crops [170]. - There are no material changes in market risk from the previous annual report [171].

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Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $1.098 billion, down from $1.108 billion in the prior year, primarily due to lower sales in the banana segment and negative exchange rate fluctuations, partially offset by higher sales in fresh and value-added products [15] - Gross profit increased to $92 million from $82 million year-over-year, driven by higher sales in fresh and value-added segments, despite increased production and distribution costs [15][16] - Gross margin improved to 8.4% from 7.4% in the prior year, reflecting a sequential increase from 6.8% in Q4 2024 [16] - Net income attributable to Fresh Del Monte was $31 million, compared to $26 million in the prior year, with diluted EPS rising to $0.64 from $0.55 [18] Business Line Data and Key Metrics Changes - Fresh and value-added products segment net sales were $683 million, up from $677 million, driven by higher selling prices in avocados and fresh cut fruits [19] - Banana segment net sales decreased to $364 million from $380 million, impacted by lower sales volume and prices in Asia and North America [21] - Other products and services segment net sales remained stable at $51 million, with gross profit increasing to $6 million from $5 million due to higher selling prices in poultry and meats [22] Market Data and Key Metrics Changes - Strong consumer interest in avocados and fresh cut fruits continues, with these categories central to the company's long-term growth strategy [8] - Pineapples are experiencing demand exceeding supply, indicating strong market positioning [7][8] Company Strategy and Development Direction - The company aims to lead in fresh and value-added products, focusing on quality, innovation, and sustainability [12] - Strategic acquisition of a majority stake in Abolio, a leading avocado oil producer in Uganda, aims to reduce waste and enhance value in a high-margin category [11] - The company is committed to operational efficiency and leveraging its vertically integrated supply chain to navigate global shipping disruptions [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued solid demand for fresh produce, despite consumer pressures [34] - The company is closely monitoring tariff impacts and is working collaboratively with buyers to mitigate negative effects [38] - Expectations for full-year 2025 include a 2% growth in net sales and targeted gross margins across segments [28][29] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing a 3.5% yield based on current share price [25] - Long-term debt decreased by 5% from the previous fiscal year-end, reflecting improved financial health [25] Q&A Session Summary Question: Demand in the produce category - Management noted continuous solid demand in fresh produce, with no expected reductions in consumption [34] Question: Logistic issues in the industry - Management indicated that smaller operators are at a disadvantage due to logistical disruptions, while the company remains agile and capable of fulfilling customer demands [36][37] Question: Impact of tariffs on pricing - Management is working with buyers to mitigate tariff impacts without negatively affecting consumers [38] Question: Performance of avocado segment - The avocado segment is performing well, with diversification in sourcing contributing to growth [40] Question: Fresh cut fruit margins - Management believes fresh cut fruit operations are strengthening, with increased efficiency leading to stable margins [44] Question: Pineapple supply and demand - Management highlighted that increasing consumption is driving demand for pineapples, which are still competitively priced compared to other fruits [46][47]