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)

CORAL GABLES, Fla.--(BUSINESS WIRE)--Fresh Del Monte Produce Inc. (NYSE: FDP), (the “Company”) today announced that it will issue a press release on its fourth quarter and full fiscal year 2023 financial results prior to the market opening on Monday, February 26, 2024 and will host its quarterly conference call that day at 10:00 a.m. Eastern Time to discuss the Company’s financial results. Hosting the call for the Company will be Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer, Monica Vicente, S ...

FORWARD-LOOKING STATEMENTS • Q3 & Nine Months Financial Results Nine months 2023 financial highlights: o Adjusted gross margin improved 140 bps versus prioryear period o Adjusted EBITDA increased 14% to $201 million versus prior-year period o Adjusted diluted EPS increased 23% to $1.87 versus prior-year period "Lunchables with Fresh Fruit" continues to test in the market • Q32023 Earnings Call Presentation November 1, 2023 4 BUSINESS UPDATE BUSINESS UPDATE Unveiled two salad kits with global restaurant chai ...

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 September 29, 2023 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 Chart ...

Fresh Del Monte Produce Inc. (NYSE:FDP) Q2 2023 Earnings Conference Call August 2, 2023 10:00 AM ET Company Participants Claudia Pou - Vice President, Corporate Communications Mohammad Abu-Ghazaleh - Chairman and Chief Executive Officer Monica Vicente - Senior Vice President and Chief Financial Officer Conference Call Participants Mitch Pinheiro - Sturdivant & Co Operator Good day, everyone, and welcome to Fresh Del Monte Produce’s Second Quarter 2023 Earnings Conference Call. Today’s conference call is bei ...

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 30, 2023 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 Cayman Islands N/A (State or Other Jurisdiction of Incorporation or Organization) (I.R.S Employer Identification No.) c/o ...

Fresh Del Monte Produce Inc. (NYSE:FDP) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET Company Participants Claudia Pou - Vice President, Corporate Communications Mohammad Abu-Ghazaleh - Chairman and Chief Executive Officer Monica Vicente - Senior Vice President and Chief Financial Officer Conference Call Participants Mitchell Pinheiro - Sturdivant & Co. Jonathan Feeney - Consumer Edge Operator Good day, everyone, and welcome to Fresh Del Monte Produce's First Quarter 2023 Earnings Conference Call ...

PART I: FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Fresh Del Monte Produce Inc.'s unaudited consolidated financial statements for Q1 2023, detailing key financial results [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets were $3.44 billion, with liabilities at $1.42 billion and equity at $1.97 billion Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2023 | December 30, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $1,245.9 | $1,241.4 | | **Total Assets** | $3,443.1 | $3,458.9 | | **Total Current Liabilities** | $603.0 | $607.0 | | **Long-term debt and finance leases** | $479.6 | $547.1 | | **Total Liabilities** | $1,423.9 | $1,483.9 | | **Total Shareholders' Equity** | $1,969.8 | $1,925.6 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2023 net sales were $1.128 billion, gross profit increased to $97.0 million, and operating income surged to $74.5 million from asset disposal gains Q1 Statement of Operations (in millions, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net sales | $1,128.5 | $1,136.9 | | Gross profit | $97.0 | $89.8 | | Gain (loss) on disposal of property, plant and equipment, net | $27.5 | $(3.8) | | Operating income | $74.5 | $39.8 | | Net income attributable to Fresh Del Monte | $39.0 | $25.8 | | Diluted EPS | $0.81 | $0.54 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 net cash from operations was $15.5 million, investing activities provided $79.6 million from asset sales, and financing used $75.9 million Q1 Cash Flow Summary (in millions) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $15.5 | $(0.3) | | Net cash provided by (used in) investing activities | $79.6 | $(16.6) | | Net cash (used in) provided by financing activities | $(75.9) | $26.7 | | **Net increase in cash and cash equivalents** | **$18.5** | **$9.2** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's three segments, ongoing tax disputes, credit facility details, and a subsequent put option event - The company operates through three reportable segments: Fresh and value-added products, Banana, and Other products and services[24](index=24&type=chunk)[70](index=70&type=chunk) - The company is contesting income tax deficiencies from two foreign jurisdictions related to transfer pricing, aggregating approximately **$152.1 million** for tax years 2012-2016[29](index=29&type=chunk) - The company maintains a five-year, **$0.9 billion** syndicated senior unsecured revolving credit facility maturing in October 2024. As of March 31, 2023, borrowings were **$472.7 million**[53](index=53&type=chunk)[54](index=54&type=chunk) - Effective April 1, 2023, a noncontrolling shareholder exercised a put option, requiring the company to purchase the remaining 25% of a subsidiary for approximately **$5.2 million** in Q2 2023[99](index=99&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, highlighting inflation impacts, sales trends, and segment performance, with liquidity supported by operating cash flow [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2023 consolidated net sales decreased 1% to $1.128 billion, gross profit rose to $97.0 million, and operating income surged to $74.5 million due to asset disposal gains - Net sales decreased **1% YoY** due to lower avocado prices, lower sales volumes in the fresh and value-added segment, and negative currency exchange rates[109](index=109&type=chunk) - Gross profit increased to **$97.0 million** from **$89.8 million YoY**, driven by higher selling prices and lower distribution costs, despite higher production and ocean freight costs[110](index=110&type=chunk) - Operating income increased by **$34.7 million**, primarily driven by a significant gain on the disposal of property, plant, and equipment, which included a **$20.5 million** gain on the sale of assets in Saudi Arabia and a **$6.8 million** gain on a facility in North America[112](index=112&type=chunk)[115](index=115&type=chunk) [Financial Results by Segment](index=31&type=section&id=Financial%20Results%20by%20Segment) Q1 2023 segment performance shows Fresh and value-added sales decline, Banana sales growth, and Other products sales increase Q1 2023 Segment Performance (in millions) | Segment | Net Sales | Gross Profit | Gross Margin | | :--- | :--- | :--- | :--- | | Fresh and value added products | $643.4 | $47.1 | 7.3% | | Banana | $425.1 | $43.2 | 10.2% | | Other products and services | $60.0 | $6.7 | 11.2% | - Fresh and value-added products sales decreased due to lower avocado prices and reduced volumes, but gross margin improved from **6.6%** to **7.3% YoY**[120](index=120&type=chunk)[121](index=121&type=chunk) - Banana segment sales and profit increased due to higher pricing and volume, with gross margin expanding to **10.2%** from **9.3% YoY**[122](index=122&type=chunk)[123](index=123&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by improved Q1 2023 operating cash flow of $15.5 million and $461.5 million borrowing availability under its credit facility Q1 Cash Flow Comparison (in millions) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash from Operating Activities | $15.5 | $(0.3) | | Net cash from Investing Activities | $79.6 | $(16.6) | | Net cash from Financing Activities | $(75.9) | $26.7 | - Investing activities were driven by **$90.7 million** in proceeds from the sale of property, plant, and equipment, including distribution centers in Saudi Arabia and a production facility in North America[132](index=132&type=chunk) - Financing activities primarily consisted of **$67.1 million** in net debt repayments and **$7.2 million** in dividend payments[134](index=134&type=chunk) - As of March 31, 2023, the company had **$461.5 million** of borrowing availability under its committed working capital facilities[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures were reported compared to the 2022 Annual Report on Form 10-K - There were no material changes in market risk from the disclosures in the 2022 Form 10-K[161](index=161&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2023, disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2023[162](index=162&type=chunk) - No changes to internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[162](index=162&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is contesting ongoing **$152.1 million** income tax deficiencies related to transfer pricing in two foreign jurisdictions for tax years 2012-2016 - The company is contesting income tax deficiencies related to transfer pricing in two foreign jurisdictions, aggregating approximately **$152.1 million** for tax years 2012-2016[164](index=164&type=chunk) - The company strongly disagrees with the proposed adjustments and is pursuing all necessary administrative and judicial remedies to resolve the matters[166](index=166&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial statements - Exhibits filed with the report include CEO and CFO certifications pursuant to SEC rules 13a-14(a) and 13a-14(b), and financial data in Inline XBRL format[168](index=168&type=chunk) [Signatures](index=42&type=section&id=Signatures) - The report was duly signed on May 3, 2023, by Mohammed Abbas, Executive Vice President & Chief Operating Officer, and Monica Vicente, Senior Vice President & Chief Financial Officer[173](index=173&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 333-07708 FRESH DEL MONTE PRODUCE INC. (Exact Name of Registrant as Specified in Its Charter) Cayman Islands N/A (State or Other Jurisdiction of I ...