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]

Core Viewpoint - Fresh Del Monte Produce Inc (FDP) is currently undervalued, with its enterprise value of $1.41 billion being lower than its tangible book value of $1.48 billion, presenting a strong buying opportunity for investors [3][12][35] Valuation Metrics - The market capitalization of Fresh Del Monte Produce is approximately $1.03 billion, while its tangible book value stands at $1.477 billion, indicating a significant discount [4][15] - The price-to-trailing cash flow multiple is at 5.7x, which is cheaper than 90% of the time since the Great Recession [5][27] - The enterprise value to revenue ratio is 0.328, and the forward ratio is 0.323, both of which are historically low [7][27] Dividend and Cash Flow - The company has raised its annual dividend to $1.00, yielding 4.7% on a forward basis, which is significantly higher than the S&P 500's yield of 1.23% [20][29] - The free cash flow yield is currently at 11.7%, indicating strong cash generation capabilities [19][28] Earnings and Growth Potential - Earnings per share (EPS) for 2024 is estimated at $1.94, with a projected increase to $2.49 in 2025, reflecting a growth rate of 28.09% [22][31] - The company has potential for profit margin improvement, as current gross and operating margins are below historical levels [22][32] Market Position and Strategy - Fresh Del Monte Produce is positioned as a food inflation hedge, with the ability to pass on rising costs to consumers, potentially increasing EPS by 20% to 30% with a 10% price increase in fresh produce [22][31] - The company operates with low debt levels, with trailing free cash flow of $120 million against net interest expenses of $20 million, providing financial stability [22][31] Investment Outlook - The stock is currently trading at a 50% discount to its estimated asset liquidation value of $40 per share, suggesting significant upside potential [12][35] - Analyst estimates indicate a potential price target of $30 to $40 per share within 12-18 months, representing a total return of 100% for current investors [34][35]

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) ...

Fresh Del Monte Produce Inc. Fresh Del Monte Produce Inc. Reports First Quarter Earnings for Fiscal 2024 Fresh and Value-Added Segment Revenue Increased 5% Compared to Prior-Year Avocado Revenue Increased 23% Driven by Year-Over-Year Pricing Improvement Financial highlights for the first quarter 2024: Net sales for the first quarter of 2024 were $1,107.9 million compared with $1,128.5 million in the prior-year period. The decrease in net sales was a result of lower banana net sales, driven by lower volume a ...

PHILADELPHIA, March 13, 2024 (GLOBE NEWSWIRE) -- SEMCAP Food & Nutrition (SEMCAP) is pleased to announce the addition of Fresh Del Monte (NYSE:FDP) as a key partner and investor in the first closing of the firm's inaugural Food & Nutrition investment strategy. Having launched the Food & Nutrition platform in 2021, the SEMCAP Food team executed three transactions prior to the launch of the Fund in Q4 2023. SEMCAP was pleased to partner with Fresh Del Monte on two of those three investments in Purely Elizabet ...

Financial Performance - Q4 2023 net sales were $1,009 million, compared to $1,040 million in the prior year[6] - Full year 2023 net sales were $4,321 million, compared to $4,442 million in the prior year[6] - Full year Adjusted EPS grew to $2.12[7] - The company reduced long-term debt by $140 million to $400 million at the end of FY23[5] - The company sold underutilized assets for $120 million in FY23[7] Segment Results - Fresh and value-added products net sales decreased by 4% due to lower sales volume, reaching $2,478 million in FY2023 compared to $2,582 million in FY2022[15, 14] - Banana net sales increased by 1% due to higher per unit selling prices, reaching $1,638 million in FY2023 compared to $1,620 million in FY2022[18, 17] - Other products & services net sales decreased due to lower sales of third-party ocean freight services, with net sales of $205 million in FY2022 compared to $241 million in FY2023[19] - Banana gross profit increased 35% due to higher net sales and lower distribution costs, reaching $163 million in FY2023 compared to $121 million in FY2022[18, 17] Strategic Initiatives - The company increased the quarterly dividend by 25% for the second consecutive year[5] - The company is exploring strategic alternatives for the Mann Packing operation due to a non-cash fourth quarter impairment[7] - The company experienced 25% year-over-year volume growth in higher margin specialty pineapples[15]

CORAL GABLES, Fla.--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. (NYSE: FDP), ("Fresh Del Monte" or the "Company") today reported financial results for the fourth quarter and the full fiscal year ended December 29, 2023. "We are pleased with many aspects of our full year 2023 results including our strong gross margins and cash flow which enabled us to have strong full year adjusted earnings per share growth, reduce our long-term debt by $140 million to end the year with an adjusted leverage ratio of 1.7x ...

Fresh Del Monte Produce Inc. Fresh Del Monte Produce Inc. Reports Fourth Quarter and Full Fiscal Year 2023 Financial Results Gross Profit Margin for Fiscal Year 2023 Increased to 8.1% from 7.7% in Prior-Year Banana Segment Gross Margin for Fiscal Year 2023 Up 250 Basis Points Compared with Prior-Year Company Exploring Strategic Alternatives for Mann Packing Operation Long-Term Debt Reduced by $140 Million or 26% to $400 million at End of Fiscal Year 2023 - more - Fresh Del Monte Produce Inc. Page 2 of 14 Co ...

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Fresh Del Monte is a global, vertically integrated producer and marketer of fresh and prepared foods, operating in three segments with North America as its largest market - **Fresh Del Monte Produce Inc.** is a leading vertically integrated producer, marketer, and distributor of high-quality fresh and fresh-cut fruit and vegetables, and prepared foods, juices, beverages, and snacks, primarily under the **Del Monte® brand**[12](index=12&type=chunk) - The Company's business is comprised of **three reportable segments**: **Fresh and value-added products**, **Banana**, and **Other products and services**[14](index=14&type=chunk)[16](index=16&type=chunk) 2023 Net Sales by Region | Region | Net Sales % | | :----- | :---------- | | North America | 60% | | Europe | 19% | | Middle East (incl. North Africa) | 9% | | Asia | 10% | | Other | 2% | - The Company sources **49%** of its fresh produce from company-controlled farms and **51%** from independent producers, with **Costa Rica** being the most significant sourcing location (**36%** of total sales volume and property, plant, and equipment)[19](index=19&type=chunk) - Fresh-cut produce sales represented **20% of total net sales in 2023**, with North America accounting for **71% of fresh-cut fruit sales** and **83% of fresh-cut vegetable sales**[20](index=20&type=chunk) - Pineapple net sales represented **14% of total net sales in 2023**, with **74%** of fresh pineapples produced on company-controlled farms due to high capital investment and agricultural expertise required[26](index=26&type=chunk)[28](index=28&type=chunk) - Banana net sales represented **38% of total net sales in 2023**, with **47%** of the volume sold produced on company-controlled farms[34](index=34&type=chunk)[35](index=35&type=chunk) - The Company's third-party freight and logistic services, rebranded as "**Network Shipping**," leverage supply chain assets and contribute meaningfully to profitability[39](index=39&type=chunk) - The **Del Monte® brand** has been used for over **125 years** and is recognized globally for quality, freshness, and reliability[46](index=46&type=chunk) - One customer, **Walmart, Inc.**, accounted for approximately **9% of total net sales in 2023**, with the top **10 customers** accounting for approximately **31%**[47](index=47&type=chunk) - The Company's workforce consists of approximately **6,402 full-time salaried employees**, **25,485 full-time hourly employees**, and over **7,000 seasonal hourly employees** as of December 29, 2023[78](index=78&type=chunk) [Item 1A. Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks from market conditions, operations, regulations, agriculture, cybersecurity, and financing - The Company faces continued inflationary pressures on raw materials, packaging, labor, energy, fuel, and transportation costs, which may not be fully offset by price increases, potentially impacting profitability and sales volume[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - The global fresh produce industry is highly competitive, with profitability affected by price, product quality, brand recognition, and supply/demand imbalances, particularly for volatile products like bananas and pineapples[95](index=95&type=chunk)[96](index=96&type=chunk) - Consolidation of retailers, wholesalers, and distributors in the food industry can exert downward pricing pressure and lead to increased costs for the Company[97](index=97&type=chunk) - The Company is exposed to significant currency exchange risks, as nearly **34% of net sales** and a substantial portion of costs are denominated in foreign currencies, which can negatively affect operating results[98](index=98&type=chunk)[279](index=279&type=chunk) - Loss of major customers (**Walmart** accounted for **9% of 2023 net sales**) or reductions in their purchases could negatively impact sales and profits[99](index=99&type=chunk)[580](index=580&type=chunk) - Shortages of qualified labor, increases in wage and benefit costs, and labor disruptions could adversely affect financial results and profitability[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The Company is dependent on key suppliers, with one grower in the Philippines supplying approximately **13% of banana net sales in 2023**, posing a risk if relationships terminate[103](index=103&type=chunk) - Agricultural operations are vulnerable to crop diseases (e.g., **Banana Fusarium Wilt Tropical Race 4 - TR4**), insect infestations, adverse weather, natural disasters, and water scarcity, which can lead to substantial losses and increased costs[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk)[143](index=143&type=chunk) - The Company relies on information systems, and cybersecurity breaches (like the incident in early 2023) could disrupt operations, lead to data loss, reputational damage, and significant costs[147](index=147&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Indebtedness and variable interest rates pose financial risks, with increases in interest rates potentially increasing debt servicing costs and impacting cash flows[156](index=156&type=chunk)[159](index=159&type=chunk) - Members of the **Abu-Ghazaleh family**, including the Chairman and CEO, directly owned **28.6% of outstanding Ordinary Shares** as of February 16, 2024, allowing them to significantly influence shareholder matters[160](index=160&type=chunk) [Item 1B. Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The Company reported no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[165](index=165&type=chunk) [Item 1C. Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) The Board oversees cybersecurity risk management, grounded in the NIST Framework, covering threat identification, mitigation, and incident response - The Board of Directors oversees the Company's cybersecurity plan and risks, delegating monitoring to the Governance Committee[166](index=166&type=chunk)[171](index=171&type=chunk) - The Company's cybersecurity approach is based on the **NIST Cybersecurity Framework v1.1**, focusing on identification, protection, detection, response, recovery, third-party risk management, and employee education[167](index=167&type=chunk)[169](index=169&type=chunk)[174](index=174&type=chunk) - A cybersecurity incident in early 2023 impacted operational and IT systems, but critical data and business systems were recovered promptly, with no material impact on financial results expected[149](index=149&type=chunk)[173](index=173&type=chunk) [Item 2. Properties](index=33&type=section&id=Item%202.%20Properties) Fresh Del Monte owns or leases global plantations and operates numerous facilities, including distribution and fresh-cut centers, with Costa Rica as a key location Plantation Acreage Under Production (End of 2023) | Location | Acres Owned | Acres Leased | Products | | :--------- | :---------- | :----------- | :------- | | Costa Rica | 45,996 | 5,007 | Bananas, Pineapples, Melons | | Philippines | — | 17,622 | Bananas, Pineapples | | Guatemala | 8,446 | 5,805 | Bananas, Melons | | Kenya | — | 11,362 | Pineapples | | Chile | 2,073 | 1,366 | Non-Tropical Fruit | | Panama | — | 1,025 | Bananas | | Brazil | 2,282 | 2,083 | Bananas, Other Crops | | United States | 600 | — | Melons | - The Company operates **27 distribution centers** in North America (**15** with fresh-cut facilities), **4 port facilities**, and an avocado packing facility in Mexico[176](index=176&type=chunk) - Key facilities include a fresh-cut fruit facility in England, a prepared fruit/tomato production facility in Greece, and distribution/fresh-cut facilities in Japan, South Korea, UAE, and Saudi Arabia[177](index=177&type=chunk)[178](index=178&type=chunk)[183](index=183&type=chunk) - In Jordan, the Company owns a vertically integrated poultry business and a hydroponic greenhouse with a fresh-cut processing center[183](index=183&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The Company is contesting **$165.4 million** in income tax deficiencies for 2012-2016 in two foreign jurisdictions, related to transfer pricing, with ongoing appeals - The Company is contesting income tax deficiencies of approximately **$165.4 million** (including interest and penalties) for tax years **2012-2016** in two foreign jurisdictions, related to transfer pricing[185](index=185&type=chunk)[457](index=457&type=chunk) - Legal proceedings are ongoing in both administrative and judicial courts, with injunctions granted to stay collection efforts in one jurisdiction, secured by real estate collateral of **$7.0 million** and **$28.5 million** fair market value[186](index=186&type=chunk)[458](index=458&type=chunk) - Management strongly disagrees with the proposed adjustments and plans to exhaust all administrative and judicial remedies[187](index=187&type=chunk)[459](index=459&type=chunk) [Item 4. Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The Company states that Item 4, Mine Safety Disclosures, is not applicable to its operations - Item 4. Mine Safety Disclosures is not applicable to the Company[188](index=188&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Fresh Del Monte's Ordinary Shares trade on the NYSE (FDP); the company declared **$0.75** per share in dividends for 2023 and completed a **$11.8 million** share repurchase - Ordinary Shares are traded on the **New York Stock Exchange** under the symbol "**FDP**"[4](index=4&type=chunk) - As of February 16, 2024, there were **47,629,018 ordinary shares** issued and outstanding, with **381 shareholders of record**[7](index=7&type=chunk)[189](index=189&type=chunk) Dividends Declared Per Ordinary Share | Year | Q1 | Q2 | Q3 | Q4 | Total | | :--- | :-- | :-- | :-- | :-- | :---- | | 2023 | $0.15 | $0.20 | $0.20 | $0.20 | $0.75 | | 2022 | $0.15 | $0.15 | $0.15 | $0.15 | $0.60 | | 2021 | - | - | - | - | $0.50 | - On November 2, 2023, the Board approved a Share Repurchase Plan to purchase up to **500,000 Ordinary Shares**, which was completed in **Q4 2023** for **$11.8 million**[191](index=191&type=chunk) Cumulative Five-Year Total Return (12/28/2018 to 12/29/2023) | Index | 12/28/2018 | 12/27/2019 | 1/1/2021 | 12/31/2021 | 12/30/2022 | 12/29/2023 | | :---------------------- | :--------- | :--------- | :------- | :--------- | :--------- | :--------- | | Fresh Del Monte Produce Inc. | 100.00 | 125.18 | 86.88 | 101.24 | 98.22 | 101.25 | | S&P Smallcap 600 | 100.00 | 122.78 | 136.64 | 173.29 | 145.39 | 168.73 | | S&P 600 Food Products | 100.00 | 116.36 | 114.12 | 126.04 | 121.94 | 133.07 | [Item 6. Reserved](index=37&type=section&id=Item%206.%20Reserved) Item 6 is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A reviews 2023 financial results, noting decreased net sales, increased gross profit, lower operating income due to impairment, and liquidity from operations - Net sales for 2023 decreased to **$4,320.7 million** from **$4,442.3 million** in 2022, primarily due to lower sales volumes and negative exchange rate fluctuations, partially offset by higher per unit selling prices[216](index=216&type=chunk) - Gross profit for 2023 increased by **3%** to **$350.7 million** from **$340.2 million** in 2022, driven by higher selling prices in fresh and value-added products and lower distribution costs, despite higher per unit production costs due to exchange rates[217](index=217&type=chunk) - Operating income decreased by **$97.8 million** in 2023 to **$58.5 million**, mainly due to **$143.4 million** in asset impairment and other charges, including **$109.6 million** for fresh and value-added assets and **$21.6 million** for prepared foods goodwill[221](index=221&type=chunk)[222](index=222&type=chunk) Net Cash Flow Summary (USD millions) | Category | 2023 | 2022 | 2021 | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $177.9 | $61.8 | $128.5 | | Net cash provided by (used in) investing activities | $56.4 | $(49.1) | $(82.5) | | Net cash used in financing activities | $(213.5) | $(12.0) | $(53.2) | | Cash and cash equivalents, ending | $33.8 | $17.2 | $16.1 | - Net cash provided by operating activities increased by **$116.1 million** to **$177.9 million** in 2023, primarily due to a reduction in inventories[237](index=237&type=chunk) - Net cash provided by investing activities was **$56.4 million** in 2023, driven by **$119.9 million** from asset sales (including two distribution centers in Saudi Arabia and a plastics business subsidiary), partially offset by **$57.7 million** in capital expenditures[239](index=239&type=chunk) - Net cash used in financing activities was **$213.5 million** in 2023, primarily for net payments on long-term debt (**$139.8 million**), dividends paid (**$35.9 million**), and share repurchases (**$11.8 million**)[245](index=245&type=chunk) - Capital expenditures for 2024 are projected to be approximately **$76 million**, focusing on North America production facilities, pineapple and banana operations in Central America, and fresh-cut/prepared foods in Africa[244](index=244&type=chunk) - The Company's Revolving Credit Facility was amended in February 2024, extending maturity to **February 21, 2029**, and reducing the limit to **$750 million**[250](index=250&type=chunk) - The Company utilizes foreign currency forward contracts and interest rate swaps to hedge against market risks, with a net liability of **$0.3 million** for foreign currency hedges and a net asset of **$7.9 million** for interest rate swaps as of December 29, 2023[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company faces market risks from currency exchange rates and variable interest rates, mitigated by derivatives, with potential impacts on net sales and operating results - The Company is exposed to market risk from changes in currency exchange rates and interest rates, which are managed through operating activities and derivative financial instruments[277](index=277&type=chunk)[278](index=278&type=chunk) - Approximately **34% of net sales** and a significant portion of costs in 2023 were denominated in non-U.S. currencies, making the Company vulnerable to exchange rate fluctuations[279](index=279&type=chunk) - A hypothetical **10% strengthening of the U.S. dollar** would have decreased net sales by approximately **$146.0 million** in 2023[281](index=281&type=chunk) - A hypothetical **10% increase in the interest rate** for variable rate debt would have resulted in a negative impact of approximately **$2.8 million** on operating results for 2023[283](index=283&type=chunk) - As of December 29, 2023, the notional value of interest rate contracts outstanding was **$400 million**, with maturities in **2024** and **2028**[285](index=285&type=chunk)[553](index=553&type=chunk) [Special Note Regarding Forward-Looking Statements](index=50&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section notes the report contains forward-looking statements subject to various risks, including market conditions and cybersecurity, which the Company does not undertake to update - The report contains forward-looking statements concerning expectations, beliefs, projections, plans, and strategies[287](index=287&type=chunk) - These statements are subject to risks and uncertainties, including inflationary pressures, competition, foreign currency fluctuations, supply chain disruptions, crop diseases, and cybersecurity attacks[290](index=290&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) - The Company does not undertake to update or revise forward-looking statements as more information becomes available or to reflect changes in expectations, assumptions, or results, except as required by law[294](index=294&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents consolidated financial statements with an unqualified audit opinion from Ernst & Young LLP, highlighting critical audit matters like goodwill and asset impairment - **Ernst & Young LLP** issued an unqualified opinion on the Company's consolidated financial statements for the period ended December 29, 2023[312](index=312&type=chunk) - **Ernst & Young LLP** also expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 29, 2023[302](index=302&type=chunk)[313](index=313&type=chunk) - Critical audit matters include the valuation of goodwill and indefinite-lived intangible assets (**$433.5 million** at December 29, 2023) and the impairment of long-lived assets, both requiring significant judgment in assumptions like cash flows and discount rates[318](index=318&type=chunk)[319](index=319&type=chunk)[321](index=321&type=chunk) Consolidated Balance Sheet Highlights (USD millions) | Item | Dec 29, 2023 | Dec 30, 2022 | | :----------------------------------- | :----------- | :----------- | | Total current assets | $1,144.3 | $1,241.4 | | Total assets | $3,184.1 | $3,458.9 | | Total current liabilities | $540.6 | $607.0 | | Total liabilities | $1,271.4 | $1,483.9 | | Total shareholders' equity | $1,912.7 | $1,925.6 | Consolidated Statements of Operations Highlights (USD millions) | Item | 2023 | 2022 | 2021 | | :------------------------------------------ | :----- | :----- | :----- | | Net sales | $4,320.7 | $4,442.3 | $4,252.0 | | Gross profit | $350.7 | $340.2 | $303.8 | | Operating income | $58.5 | $156.3 | $111.0 | | Net (loss) income attributable to Fresh Del Monte Produce Inc. | $(11.4) | $98.6 | $80.0 | | Net (loss) income per ordinary share - Basic | $(0.24) | $2.06 | $1.68 | Consolidated Statements of Cash Flows Highlights (USD millions) | Item | 2023 | 2022 | 2021 | | :-------------------------------- | :----- | :----- | :----- | | Net cash provided by operating activities | $177.9 | $61.8 | $128.5 | | Net cash provided by (used in) investing activities | $56.4 | $(49.1) | $(82.5) | | Net cash used in financing activities | $(213.5) | $(12.0) | $(53.2) | | Cash and cash equivalents, ending | $33.8 | $17.2 | $16.1 | - The Company recorded **$143.4 million** in asset impairment and other charges (credits), net, in 2023, primarily related to fresh and value-added assets in North America (**$109.6 million**) and prepared foods goodwill (**$21.6 million**)[414](index=414&type=chunk) - Goodwill and indefinite-lived intangible assets totaled **$435.2 million** at December 29, 2023, down from **$557.9 million** in 2022, primarily due to impairment charges[422](index=422&type=chunk) - The valuation allowance for deferred tax assets increased by **$42.2 million** in 2023 to **$525.7 million**, reflecting a change in judgment about the ability to realize deferred tax assets[450](index=450&type=chunk) - The Company's long-term debt obligations, net of current portion, were **$400.0 million** as of December 29, 2023, with the Revolving Credit Facility maturing in **February 2029**[488](index=488&type=chunk)[250](index=250&type=chunk) - Total purchases under agreements with independent growers amounted to **$631.6 million** for 2023[538](index=538&type=chunk) - The Company completed the acquisition of the remaining **25% noncontrolling interest** in one of its Mann Packing subsidiaries for **$5.2 million** in cash in June 2023[591](index=591&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=108&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The Company reported no changes in or disagreements with accountants on accounting and financial disclosure matters - There were no changes in or disagreements with accountants on accounting and financial disclosure[595](index=595&type=chunk) [Item 9A. Controls and Procedures](index=108&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 29, 2023, affirmed by Ernst & Young LLP - As of December 29, 2023, the CEO and CFO concluded that disclosure controls and procedures were effective[596](index=596&type=chunk) - Management determined that internal control over financial reporting was effective as of December 29, 2023, based on the **COSO framework**[598](index=598&type=chunk) - **Ernst & Young LLP** audited and issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting[600](index=600&type=chunk) [Item 9B. Other Information](index=108&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended December 29, 2023 - No director or officer adopted or terminated a **Rule 10b5-1 trading arrangement** or non-Rule 10b5-1 trading arrangement during the quarter ended December 29, 2023[601](index=601&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=109&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) The Company states that Item 9C, Disclosure Regarding Foreign Jurisdictions that Prevent Inspections, is not applicable - Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections is not applicable[602](index=602&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=110&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement; the Company maintains a Code of Conduct - Information on directors, executive officers, and corporate governance is incorporated by reference from the **2024 Annual General Meeting of Shareholders Proxy Statement**[604](index=604&type=chunk) - The Company has a **Code of Conduct and Business Ethics Policy**, which applies to all directors, officers, and employees, and had no waivers or amendments in 2023[605](index=605&type=chunk) [Item 11. Executive Compensation](index=110&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the 2024 Annual General Meeting of Shareholders Proxy Statement - Information on executive compensation is incorporated by reference from the **2024 Annual General Meeting of Shareholders Proxy Statement**[606](index=606&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=110&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Details on security ownership of beneficial owners, management, and equity compensation plans are incorporated by reference from the 2024 Proxy Statement - Information on security ownership of certain beneficial owners and management, and equity compensation plans, is incorporated by reference from the **2024 Annual General Meeting of Shareholders Proxy Statement**[607](index=607&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=110&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning certain relationships, related transactions, and director independence is incorporated by reference from the 2024 Annual General Meeting of Shareholders Proxy Statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the **2024 Annual General Meeting of Shareholders Proxy Statement**[608](index=608&type=chunk) [Item 14. Principal Accountant Fees and Services](index=110&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2024 Annual General Meeting of Shareholders Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the **2024 Annual General Meeting of Shareholders Proxy Statement**[609](index=609&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=111&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and supplemental schedules from Item 8, along with a comprehensive index of exhibits filed with the SEC, including organizational documents - This section includes a list of consolidated financial statements and supplemental schedules, such as the Consolidated Balance Sheets, Statements of Operations, Cash Flows, and Shareholders' Equity[612](index=612&type=chunk) - A comprehensive list of exhibits is provided, including organizational documents, license agreements, credit agreements, and share incentive plans, with many incorporated by reference[613](index=613&type=chunk)[614](index=614&type=chunk)[616](index=616&type=chunk)[617](index=617&type=chunk) [Item 16. Form 10-K Summary](index=115&type=section&id=Item%2016.%20Form%2010-K%20Summary) The Company states that Item 16, Form 10-K Summary, is not applicable - Item 16. Form 10-K Summary is not applicable[619](index=619&type=chunk) [SIGNATURES](index=115&type=section&id=SIGNATURES) This section contains the required signatures for the Annual Report on Form 10-K, including those of the Chairman & CEO and CFO, certifying its submission - The report is signed by the Chairman & Chief Executive Officer, Senior Vice President & Chief Financial Officer, and other directors[623](index=623&type=chunk)[624](index=624&type=chunk) - The report was signed and filed on **February 26, 2024**[623](index=623&type=chunk)[624](index=624&type=chunk)