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Fresh Del Monte Produce (FDP) - 2024 Q3 - Quarterly Report
FDPFresh Del Monte Produce (FDP)2024-10-31 20:06
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Financial Performance - Net sales for Q3 2024 were 1,019.5million,a1.41,019.5 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 3,267.0million,adecreaseof1.43,267.0 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 93.8million,upfrom93.8 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 289.2million,slightlyupfrom289.2 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 28.5millioninQ32024comparedtotheprior−yearperiod,drivenbyhighergrossprofitandgainsondisposalofproperty,plant,andequipment[130].SalesBreakdown−Netsalesforfreshandvalue−addedproductsinQ32024were28.5 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 574.0millioninQ32023,primarilyduetohighersalesvolumeandpricesofavocado,pineapple,andfresh−cutfruit[135].−NetsalesforbananasinQ32024were574.0 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 384.7millioninQ32023,primarilyduetolowersalesvolumeinNorthAmericaandAsia[140].−Netsalesforthefirstninemonthsof2024forfreshandvalue−addedproductswere384.7 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 1,895.0millionintheprior−yearperiod[144].−Netsalesforbananasinthefirstninemonthsof2024were1,895.0 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 1,258.6millionintheprior−yearperiod[148].ExpensesandCashFlow−Selling,generalandadministrativeexpensesforQ32024were1,258.6 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 48.1millioninQ32023,whileforthefirstninemonths,expensesincreasedby48.1 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 187.2millionforthefirstninemonthsof2024,upfrom187.2 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 1.0millioninthefirstninemonthsof2024,downfrom1.0 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 172.1millionforthefirstninemonthsof2024,adecreasefrom172.1 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 806millionincreditfacilitiesand806 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 609.4million,aslightincreaseof609.4 million, a slight increase of 5.7 million compared to 603.7millionatDecember29,2023[157].−AsofSeptember27,2024,thecompanyhad603.7 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 156.4millionfromthesaleofnon−strategicandunderutilizedassetsaspartofthe2020OptimizationProgram[111].−Thegainondisposalofproperty,plant,andequipmentforQ32024was156.4 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].