Fresh Del Monte Produce (FDP) - 2024 Q4 - Annual Results

Financial Performance - For the fourth quarter of 2024, net sales were $1,013.2 million, a slight increase of 0.3% compared to $1,008.6 million in the prior-year period[4] - Gross profit for the fourth quarter of 2024 was $68.7 million, up from $62.5 million in the prior-year period, reflecting a gross margin increase to 6.8% from 6.2%[5] - Full fiscal year 2024 net sales totaled $4,280.2 million, a decrease of 0.9% from $4,320.7 million in the prior-year period, primarily due to lower sales volume in the banana segment[10] - Full fiscal year 2024 gross profit was $357.9 million, an increase from $350.7 million in the prior-year period, with a gross margin improvement to 8.4% from 8.1%[11] - Adjusted operating income for the fourth quarter of 2024 was $17.1 million, compared to $12.0 million in the prior-year period[7] - For the full fiscal year 2024, adjusted net income was $116.2 million, up from $101.7 million in the prior-year period[15] - Net income for the full fiscal year 2024 was $141.6 million, compared to a net loss of $1.6 million in the prior-year period[39] - The company reported a basic earnings per share of $2.97 for the full fiscal year 2024, compared to a loss of $0.24 in the prior-year period[35] - The company reported a net income of $20.4 million for the quarter ended December 27, 2024, compared to a net loss of $113.4 million for the same quarter in the previous year[45] - Net income for the quarter ended December 27, 2024, was $20.4 million, a significant improvement from a net loss of $106.4 million in the same quarter of 2023[53] Segment Performance - The fresh and value-added products segment saw net sales increase by 5% to $612.3 million in the fourth quarter of 2024, driven by higher selling prices and sales volume[19] - The banana segment reported a decrease in net sales to $356.8 million in the fourth quarter of 2024, down from $379.6 million in the prior-year period[20] - Gross margin for the fresh and value-added products segment improved to 7.5% in the fourth quarter of 2024, compared to 3.8% in the prior-year period[19] - Gross profit in the poultry and meats business increased to $27.8 million from $20.1 million, with a gross margin rise to 14.1% from 9.8%[29] - The gross margin for Fresh and Other value-added products was reported at 9.3% for the year ended December 27, 2024, compared to 9.8% for the year ended December 29, 2023[48] - Adjusted gross profit for the Fresh and Other value-added products segment was $46.3 million for the quarter ended December 27, 2024, compared to $37.6 million for the same quarter in the previous year, marking a 23.1% increase[48] - The company reported a gross profit of $243.9 million for the year ended December 27, 2024, compared to $163.4 million for the year ended December 29, 2023, reflecting a significant increase[48] Debt and Cash Flow - Long-term debt was reduced by $156 million, or 39%, to $244 million at the end of fiscal year 2024[2] - Long-term debt decreased to $244.1 million from $400.0 million as of the prior-year end[31] - Net cash provided by operating activities for the full fiscal year 2024 was $182.5 million, an increase from $177.9 million in the prior-year period[30] Dividends and Shareholder Returns - The quarterly cash dividend was increased to $0.30 per share, payable on March 28, 2025[32] Assets and Liabilities - Total assets decreased to $3,096.2 million from $3,184.1 million year-over-year[37] - Total liabilities decreased to $1,089.4 million from $1,271.4 million year-over-year[37] Other Financial Metrics - Adjusted EBITDA for the year ended December 27, 2024, was $116.2 million, compared to $101.7 million for the year ended December 29, 2023, indicating a growth of 14.4%[45] - Adjusted EBITDA for the year ended December 27, 2024, was $236.2 million, compared to $238.5 million in the previous year, showing stability despite challenges[53] - EBITDA for the quarter was $48.4 million, compared to a negative EBITDA of $87.6 million in the prior year, indicating a strong recovery[53] - The net income margin for the quarter was 2.0%, a recovery from a negative margin of 10.5% in the same quarter of 2023[53] Impairments and Charges - Asset impairment charges for the quarter included $1.5 million related to damaged housing at farms in Costa Rica and $1.4 million related to goodwill impairment[58] - Other product-related charges for the quarter included $0.2 million of inventory write-offs due to flooding damage at melon farms in Costa Rica[54] Strategic Initiatives - The company aims to solidify its position as a global leader in pineapples and expand its fresh-cut program as a key profit center[60] - Fresh Del Monte Produce Inc. is committed to maximizing the utilization of its biomass and enhancing sustainability efforts through biofertilizers[60]