Q32024 October 31, 2024 Earnings Call Presentation 1 Mohammad Abu-Ghazaleh Chairman & CEO Monica Vicente SVP, CFO FORWARD-LOOKING STATEMENTS This presentation and the related earnings call contain certain forward-looking statements regarding the intent, beliefs or current expectations of the Company. These statements include statements that are preceded by, followed by or include the words "believes", "expects", "anticipates", "may" or similar expressions with respect to various matters. Specifically, this ...

Financial Performance - Net sales for Q3 2024 were $1,019.5 million, a 1.4% increase from $1,003.1 million in Q3 2023, driven by higher sales volume and prices of avocado and pineapple [119]. - Net sales for the first nine months of 2024 were $3,267.0 million, a decrease of 1.4% from $3,312.1 million in the same period of 2023, primarily due to lower banana sales [120]. - Gross profit for Q3 2024 was $93.8 million, up from $74.4 million in Q3 2023, attributed to higher sales volume and prices in the fresh and value-added product segment [121]. - Gross profit for the first nine months of 2024 was $289.2 million, slightly up from $288.2 million in the same period of 2023, despite challenges from increased production costs and adverse weather conditions [122]. - Operating income increased by $28.5 million in Q3 2024 compared to the prior-year period, driven by higher gross profit and gains on disposal of property, plant, and equipment [130]. Sales Breakdown - Net sales for fresh and value-added products in Q3 2024 were $623.7 million, up from $574.0 million in Q3 2023, primarily due to higher sales volume and prices of avocado, pineapple, and fresh-cut fruit [135]. - Net sales for bananas in Q3 2024 were $345.3 million, down from $384.7 million in Q3 2023, primarily due to lower sales volume in North America and Asia [140]. - Net sales for the first nine months of 2024 for fresh and value-added products were $1,994.6 million, up from $1,895.0 million in the prior-year period [144]. - Net sales for bananas in the first nine months of 2024 were $1,119.1 million, down from $1,258.6 million in the prior-year period [148]. Expenses and Cash Flow - Selling, general and administrative expenses for Q3 2024 were $47.9 million, a slight decrease from $48.1 million in Q3 2023, while for the first nine months, expenses increased by $6.0 million compared to the same period last year [125]. - Net cash provided by operating activities increased to $187.2 million for the first nine months of 2024, up from $180.1 million in the same period of 2023, representing an increase of 3.9% [156]. - Net cash provided by investing activities significantly decreased to $1.0 million in the first nine months of 2024, down from $69.9 million in the same period of 2023 [158]. - Net cash used in financing activities was $172.1 million for the first nine months of 2024, a decrease from $191.2 million in the same period of 2023 [162]. Liquidity and Capital Resources - The company reported a liquidity position with $806 million in credit facilities and $50.8 million in cash and cash equivalents as of September 27, 2024 [153]. - The principal uses of liquidity include operational costs, dividends, and capital expenditures to enhance productivity and expand product offerings [154]. - Working capital as of September 27, 2024, was $609.4 million, a slight increase of $5.7 million compared to $603.7 million at December 29, 2023 [157]. - As of September 27, 2024, the company had $511.7 million in unused borrowing capacity under the 2024 Amended Credit Facility [170]. - The company expects cash on hand, available borrowing capacity, and cash flows from operations to be sufficient to meet cash requirements over the next twelve months [171]. Strategic Initiatives - A strategic review of the Mann Packing operation was conducted, leading to the consolidation of operations into a single facility expected to enhance efficiency by Q4 2024 [112]. - The company generated cash proceeds of approximately $156.4 million from the sale of non-strategic and underutilized assets as part of the 2020 Optimization Program [111]. - The gain on disposal of property, plant, and equipment for Q3 2024 was $8.2 million, primarily from the sale of a warehouse in Chile [126]. Risks and Challenges - The company anticipates continued inflationary pressures and plans to mitigate these through pricing strategies [183]. - Risks include increased costs for products like bananas and avocados, and potential impacts from geopolitical conflicts such as the Red Sea conflict [184]. - There are concerns regarding the impact of severe weather conditions on crop quality and yields, which could affect production capabilities [185]. - The company faces risks related to international operations, including currency fluctuations and political conditions [185]. - No material changes in market risk have been reported since the last Annual Report [188].

Financial Performance - Net sales for Q3 2024 were $1,019.5 million, a 1.4% increase from $1,003.1 million in Q3 2023, driven by higher sales in fresh and value-added products[2] - Gross profit for Q3 2024 was $93.8 million, up from $74.4 million in the prior-year period, resulting in a gross margin increase to 9.2% from 7.4%[3] - Operating income for Q3 2024 rose to $53.9 million compared to $25.4 million in Q3 2023, primarily due to higher gross profit and gains from asset sales[4] - Net income for Q3 2024 was $42.1 million, significantly higher than $8.4 million in the prior-year period, with adjusted net income at $37.0 million compared to $17.2 million[7] - Basic earnings per share (EPS) for the quarter was $0.88, compared to $0.17 in the prior year[1] - EBITDA for the quarter ended September 27, 2024, was $75.7 million, up from $41.5 million in the same quarter of 2023, reflecting a margin increase from 4.1% to 7.4%[42] - Diluted EPS for the quarter ended September 27, 2024, was $0.88, compared to $0.17 for the same quarter in 2023, marking a substantial increase of 418%[33] Segment Performance - Fresh and value-added products segment net sales reached $623.7 million in Q3 2024, a 8.6% increase from $574.0 million in Q3 2023, with a gross margin of 10.1%[11] - Banana segment net sales decreased to $345.3 million in Q3 2024 from $384.7 million in Q3 2023, with a gross margin decline to 6.2% from 8.3%[14] - Other products and services segment net sales increased to $50.5 million in Q3 2024 from $44.4 million in Q3 2023, with a gross margin improvement to 18.2% from 14.2%[17] Cash Flow and Debt - Net cash provided by operating activities for the first nine months of 2024 was $187.2 million, up from $180.1 million in the prior-year period[19] - Long-term debt decreased to $269.6 million at the end of Q3 2024, down approximately 33% from $401.0 million at the end of Q3 2023[20] - Cash and cash equivalents increased to $50.8 million from $33.8 million at the end of December 2023[2] Dividends and Shareholder Returns - A quarterly cash dividend of $0.25 per share was declared, payable on December 6, 2024, to shareholders of record on November 14, 2024[21] - The company declared dividends of $0.25 per ordinary share, up from $0.20 in the same quarter last year[1] Future Outlook - Future outlook includes continued focus on market expansion and new product development to drive growth in the upcoming quarters[34] - Fresh Del Monte Produce Inc. anticipates focusing on high-margin, value-added products and streamlining operations to enhance profitability and growth[49] - The company expects to expand production and meet ongoing demand for its pineapple varieties and related innovations[49] - Fresh Del Monte Produce Inc. is committed to maintaining a prudent capital structure and creating long-term value for shareholders, with expected capital expenditures in 2024[49]

Financial Performance - Net sales for Q2 2024 were $1,139.7 million, a decrease of 3.5% from $1,180.5 million in Q2 2023, primarily due to lower banana sales volume and prices [106]. - Gross profit for Q2 2024 was $113.2 million, down from $116.8 million in Q2 2023, impacted by higher production costs and adverse weather conditions [107]. - Selling, general and administrative expenses increased by 7% to $49.9 million in Q2 2024 compared to $46.8 million in Q2 2023, driven by higher employee benefits and professional fees [110]. - Operating income decreased by $3.9 million in Q2 2024 to $68.2 million, attributed to lower gross profit and a higher gain on asset sales in the prior year [115]. - Net sales for the second quarter of 2024 were $694.1 million, an increase from $677.6 million in the prior-year period, primarily driven by higher selling prices of avocados and increased sales volume of non-tropical fruit [121]. - Gross profit for the second quarter of 2024 was $77.9 million, up from $62.1 million in the prior-year period, reflecting higher selling prices despite increased production costs [121]. - Banana segment net sales decreased to $394.3 million in the second quarter of 2024 from $448.8 million in the prior-year period, attributed to lower sales volume in North America and Asia [123]. - Gross profit for the banana segment in the second quarter of 2024 was $29.8 million, down from $50.5 million in the prior-year period, with gross margin decreasing to 7.6% from 11.3% [124]. - For the first six months of 2024, net sales for fresh and value-added products were $1,370.8 million, compared to $1,321.0 million in the prior-year period, driven by higher sales volume of pineapples and melons [126]. - Gross profit for the first six months of 2024 was $133.9 million, an increase from $109.1 million in the prior-year period, with gross margin rising to 9.8% from 8.3% [126]. Cash Flow and Financing - Net cash provided by operating activities for the first six months of 2024 was $143.7 million, an increase of $11.0 million compared to $132.7 million in the prior-year period [131]. - Net cash used in financing activities for the first six months of 2024 was $144.3 million, down from $180.2 million in the prior-year period, mainly due to debt repayments and dividends paid [137]. - The company reported net cash provided by investing activities of $1.6 million for the first six months of 2024, a significant decrease from $73.7 million in the prior-year period, primarily due to lower proceeds from asset sales [133]. - The company has a five-year, $0.9 billion syndicated senior unsecured revolving credit facility maturing on October 1, 2024, which was amended to replace the Eurocurrency Rate with the Term SOFR [139]. - The 2024 Amended Credit Facility provides for a five-year, $0.75 billion revolving credit facility maturing on February 21, 2029, with interest rates ranging from 1.0% to 1.625% based on the Consolidated Leverage Ratio [140]. - As of June 28, 2024, the company had $499.3 million unused borrowing capacity under the 2024 Amended Credit Facility [144]. - The company anticipates that cash on hand, borrowing capacity, and cash flows from operations will be sufficient to meet cash requirements and service outstanding debt over the next twelve months [145]. Tax and Legal Considerations - Income tax provision for Q2 2024 increased to $12.3 million from $11.3 million in Q2 2023, primarily due to increased earnings in higher tax jurisdictions [117]. - The company is facing potential impacts from pending legal and environmental proceedings, which may affect costs and resolution timing [158]. - Changes in tax accounting or laws could influence the company's financial performance and tax audits [158]. Risk Management - The company is actively monitoring macroeconomic factors to mitigate potential cost increases in the future [98]. - The company is managing risks associated with international operations, including inflation and currency fluctuations [158]. - There have been no material changes in market risk compared to the previous Annual Report on Form 10-K [161]. - The company is exposed to product liability claims and associated legal actions, which could impact operations [158]. - The company has not recorded impairment charges associated with goodwill or trade names during the quarter ended June 28, 2024, but continues to monitor performance [152]. Strategic Initiatives - The company generated approximately $156.4 million in cash proceeds from the sale of non-strategic and underutilized assets as part of the 2020 Optimization Program [99]. - The company is exploring strategic alternatives for its Mann Packing operation, with a decision expected by Q3 2024 [100]. - The company recorded $0.5 million in charges related to shipment disruptions in the Red Sea during Q2 2024 [97]. - The company does not anticipate further inflation-justified price increases in 2024, based on stabilization in key markets [98].

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $1.140 billion, down from $1.181 billion in the prior year, primarily due to lower banana sales volume and prices, partially offset by increases in fresh and value-added products [9] - Gross profit for Q2 2024 was $113 million, compared to $117 million in the prior year, with a gross margin of 9.9%, consistent with last year [10] - Net income attributable to Fresh Del Monte was $54 million for Q2 2024, up from $48 million in the prior year, with adjusted net income at $51 million compared to $46 million last year [12] - Adjusted EBITDA for Q2 2024 was $89 million, or 8% of net sales, compared to $85 million, or 7% of net sales in the same quarter last year [12] Business Line Data and Key Metrics Changes - Fresh and Value-Added Products segment net sales increased to $694 million from $678 million in the prior year, driven by higher avocado prices and sales volume [13] - Gross profit for the Fresh and Value-Added Products segment was $78 million, up from $62 million, with a gross margin of 11.2% compared to 9.2% last year [14] - Banana segment net sales decreased to $394 million from $449 million, with a 10% reduction in sales volume and a gross profit drop to $30 million from $51 million [15] - Other Products and Services segment net sales were $51 million, down from $54 million, but gross profit increased to $6 million from $4 million [15] Market Data and Key Metrics Changes - The company noted a significant increase in banana prices in Ecuador, which are currently averaging $6 to $9, a notable rise compared to historical prices [27] - The produce industry is facing challenges with high shelf prices, impacting consumer demand and leading to less competition in certain markets [27] Company Strategy and Development Direction - The company is focusing on high-margin products, particularly in the fresh and value-added segments, which are seen as the foundation of its growth strategy [4] - Plans to optimize operations in Japan and expand the Fresh Cut facility in the UK are aimed at reducing costs and improving margins [5] - The company is also working on maximizing the utilization of fruit residues through a new biofertilizers plant in Kenya, which will initially serve internal operations but aims to enter the market eventually [7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of margin improvements in the fresh and value-added segment, despite expected seasonal pressures in the third quarter [21][23] - The company anticipates a 5% to 7% decrease in banana sales volume for the full year due to competitive pressures and shipping challenges [18] - Management highlighted the importance of vertical integration in maintaining product quality and supply consistency, which is crucial for customer trust [32] Other Important Information - Long-term debt decreased by 29% to $285 million, marking the lowest level since 2017, reflecting a commitment to a prudent capital structure [17] - The company declared a quarterly cash dividend of $0.25 per share, payable on September 6, 2024 [17] Q&A Session Summary Question: Is the margin improvement in the fresh and value-added segment sustainable? - Management indicated that while there will be seasonal pressures, they are making progress in improving margins and expect a good year overall [23] Question: What is the purpose of the biofertilizers plant in Kenya? - The plant will reduce costs through organic fertilizers and aims to market products to third parties in the future [25] Question: How is the produce category performing in North America amid inflation? - Management noted challenges in pricing and demand, with higher banana prices and less competition in the market [27] Question: How is the fresh-cut fruit segment performing? - The fresh-cut fruit segment has been well received, with strong sales and margins, particularly for the new guacamole product [29][30] Question: What drives the 3% CAGR in pineapple volume growth? - Growth is limited by land availability and the time required to cultivate new fields, with internal growth being the primary source [31]

Financial Performance - Net sales for Q2 2024 were $1,139.7 million, a decrease from $1,180.5 million in the prior-year period, primarily due to lower banana sales volume and prices[1] - Gross profit for Q2 2024 was $113.2 million, down from $116.8 million in the prior-year period, with a gross margin of 9.9%[2] - Operating income for Q2 2024 was $68.2 million, compared to $72.1 million in the prior-year period, reflecting lower gross profit[2] - Net income for Q2 2024 was $53.6 million, an increase from $47.7 million in the prior-year period, with adjusted net income at $50.9 million[3] - Net sales for the quarter ended June 30, 2024, were $1,139.7 million, a decrease of 3.5% compared to $1,180.5 million in the same quarter of 2023[13] - Gross profit for the quarter was $113.2 million, down 3.1% from $116.8 million year-over-year[13] - Operating income decreased to $68.2 million, a decline of 5.4% from $72.1 million in the prior year[13] - Net income attributable to Fresh Del Monte Produce Inc. was $53.6 million, an increase of 12.4% compared to $47.7 million in the same quarter of 2023[13] - Basic earnings per share (EPS) for the quarter was $1.12, up from $0.99 in the same quarter of the previous year[13] - For the six months ended June 28, 2024, net sales reached $2,247.5 million, compared to $2,309.0 million for the same period in 2023, showing a decline of 2.7%[24] - The adjusted gross profit for the quarter was $114.4 million, slightly lower than the $116.8 million reported in the same quarter of the previous year[23] - The gross margin for the quarter was 11.2%, compared to 9.9% in the same quarter last year, reflecting an improvement of 1.3 percentage points[24] - Fresh Del Monte Produce Inc. reported a gross profit of $195.4 million for the six months ended June 28, 2024, down from $213.8 million in the same period of 2023[24] - The company recorded an adjusted gross margin of 9.8% for the six months ended June 28, 2024, consistent with the previous year's margin of 9.3%[24] - EBITDA for the quarter was $92.7 million, up from $89.6 million year-over-year, reflecting a margin of 8.1% compared to 7.6% in the prior year[25] - Adjusted EBITDA for the six months ended June 28, 2024, was $132.5 million, down from $150.5 million for the same period in 2023, indicating a margin decrease from 6.5% to 5.9%[25] Segment Performance - Fresh and value-added products segment net sales increased to $694.1 million in Q2 2024 from $677.6 million in the prior-year period, driven by higher avocado prices[7] - Banana segment net sales decreased to $394.3 million in Q2 2024 from $448.8 million in the prior-year period, impacted by competitive pressures and lower prices in Asia[9] - Other products and services segment net sales were $51.3 million in Q2 2024, down from $54.1 million, primarily due to the sale of the plastic products business[10] Debt and Cash Flow - Long-term debt decreased to $285.0 million at the end of Q2 2024, down approximately 29% from $400.5 million a year earlier[12] - Net cash provided by operating activities for the first six months of 2024 was $143.7 million, an increase from $132.7 million in the prior-year period[11] - The company reported a net increase in cash and cash equivalents of $4.0 million, down from $26.6 million in the prior year[16] Assets and Liabilities - Total assets as of June 28, 2024, were $3,109.1 million, a decrease from $3,184.1 million at the end of 2023[15] - Total liabilities decreased to $1,138.9 million from $1,271.4 million at the end of 2023, reflecting a reduction in long-term debt[15] Future Outlook and Strategy - Future outlook includes continued focus on market expansion and new product development to drive growth[23] - The company anticipates continued focus on operational excellence and cost discipline to improve profitability and shareholder value[31] - Fresh Del Monte aims to enhance its product offerings, particularly in pineapple and avocado segments, to drive demand and volume growth[31] - The company is committed to maximizing the utilization of fruit residues and developing biofertilizers as part of its sustainability efforts[31] - Fresh Del Monte expects to face challenges related to elevated commodity costs and supply chain disruptions impacting its operations[32] Other Notable Items - The company declared a quarterly cash dividend of $0.25 per share, an increase from $0.20 per share in the prior year[13] - The company reported a gain of $3.4 million from the sale of a warehouse in Europe for the quarter ended June 28, 2024[27] - Asset impairment and other charges for the quarter included $2.0 million in insurance recoveries related to fire damage, partially offset by impairment charges in the Philippines[26] - The company incurred other product-related charges of $1.2 million in the quarter, impacting the gross profit[23]

Group 1: Budget-Friendly Stocks Overview - Budget-friendly stocks are becoming scarce as top-performing mega-cap stocks approach overvaluation, with moderate underperformance having significant market implications [1] - A few budget-friendly stocks remain, defined as either undervalued or priced low enough to be considered penny stocks without the associated risks [2] Group 2: Nintendo (NTDOY) - Nintendo is highlighted as a budget-friendly stock due to its long-term business strategy, maintaining a strong balance sheet with significant cash reserves and zero debt [4] - The company's focus on long-term growth rather than short-term profit maximization has contributed to its enduring success since 1889 [4] Group 3: PSQ Holdings (PSQH) - PSQ Holdings operates a digital marketplace aimed at aligning consumer purchases with their values, representing a shift in eCommerce trends [6][7] - The company trades around $3.75 per share with a market cap of $110 million, indicating potential for growth as a newcomer in the stock market [11] Group 4: Rumble (RUM) - Rumble has seen increased viewership, particularly during significant events like the Presidential Debate, distinguishing itself from competitors like YouTube [9] - The platform reported a loss of $0.14 per share, outperforming analyst expectations, and has filed an antitrust lawsuit against Google, positioning itself as a notable underdog in the market [18] Group 5: Stem (STEM) - Stem trades at approximately $1.10 per share with a market cap of $171 million, focusing on AI and sustainable energy, which supports its long-term growth potential [20] - The company's Athena software optimizes energy distribution, making it valuable for large-scale clients managing renewable energy resources [21] Group 6: Fresh Del Monte Produce (FDP) - Fresh Del Monte Produce is characterized as a defensive budget-friendly stock, with a recent 15% reduction in total debt and a 5% revenue increase in its fresh and value-added sales segment [25][26] - The company offers a 5.25% dividend yield, making it an attractive option for investors looking to build a budget-friendly portfolio [26] Group 7: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock operates in the niche sector of waterway management, which is essential for the global supply chain and is relatively recession-proof [28] - The company reported an EBITDA of $43 million, the highest since late 2021, and is positioned to benefit from a record $8.7 billion budget from the U.S. Army Corps of Engineers [29][30]

ArtistGNDphotography/E+ via Getty Images We believe that produce only tastes as good as the way it's grown-the more care and heart we put into our harvests, the more delicious goodness you get to enjoy. Fresh Del Monte Produce Website - June 19tth, 2024 Bullish Valuation Setup The amazing and rare part of the valuation equation is the current net "enterprise value" of $1.41 billion (total equity eapitalization plus debt minus cash holdings) is LOWER than traditional cost-accounting measured tangible book va ...

Group 1: Market Overview - The current market volatility has led to a shift towards small-cap, tech, and growth stocks, which may not provide long-term stability [2][3] - High inflation continues to exceed the Federal Reserve's target of 2%, creating uncertainty in the economic environment [3] Group 2: Fresh Del Monte Produce (FDP) - Fresh Del Monte Produce is considered a defensive blue-chip stock with strong growth prospects despite a slight sales slump in the last quarterly report [5][6] - The company has reduced total debt by 15%, adapting to economic pressures, and has seen a 5% revenue increase in its fresh and value-added sales segment, with avocado sales spiking by 23% [6] - Fresh Del Monte's current dividend yield is 4%, providing an opportunity for investors to build a position through dollar-cost averaging [7] Group 3: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock provides essential services for deepening and expanding waterways, making it relatively recession-proof and a unique investment at the intersection of commerce and climate change [9][10] - The company has a dredging backlog of $879 million and is positioned to benefit from a record-setting U.S. Army Corps of Engineers budget of $8.7 billion, ensuring steady contract cash flow [12] Group 4: Jazz Pharmaceuticals (JAZZ) - Jazz Pharmaceuticals, through its acquisition of GW Pharmaceuticals, is well-positioned in the medical cannabis industry, allowing it to capitalize on the high end of the value chain [13][15] - The company's medication for daytime sleepiness, Xywav, contributes up to 10% of total sales, providing a stable revenue stream as the medical cannabis market evolves [15]

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 March 29, 2024 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) ...