Fresh Del Monte Produce (FDP) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $1,098.4 million, a decrease of 0.5% from $1,107.9 million in the prior-year period, primarily due to lower sales in the banana segment[3] - Gross profit increased by 12% year-over-year to $92.2 million, with gross margin expanding to 8.4% from 7.4% in the prior-year period[1][4] - Adjusted net income for Q1 2025 was $30.3 million, compared to $15.8 million in the prior-year period, reflecting significant year-over-year growth[8] - Operating income for Q1 2025 was $44.9 million, slightly up from $44.1 million in the prior-year period, driven by higher gross profit[5] - Net income for the quarter ended March 28, 2025, was $31.9 million, an increase of 22.1% compared to $26.1 million for the same quarter in 2024[25] - Adjusted EBITDA for the quarter was $61.3 million, up from $43.5 million in the prior year, reflecting a margin of 5.6% compared to 3.9%[36] - Total net sales for the quarter were $1,098.4 million, slightly down from $1,107.9 million in the same quarter last year[36] - The company reported a gross profit of $92.2 million, with an adjusted gross margin of 8.4% compared to 7.3% in the previous year[33] Segment Performance - Fresh and value-added products segment net sales increased to $683.2 million from $676.8 million, attributed to higher per unit selling prices[10] - Banana segment net sales decreased to $363.8 million from $379.5 million, impacted by lower sales volume and exchange rate fluctuations[12] - Other products and services segment net sales remained stable at $51.4 million, with gross profit rising to $6.1 million from $4.6 million[14] Cash Flow and Debt - Net cash provided by operating activities increased to $46.1 million from $18.7 million in the prior-year period, primarily due to working capital fluctuations[15] - Long-term debt decreased by $11 million or 5% to $233.0 million at the end of Q1 2025[16] - Cash and cash equivalents at the end of the quarter were $34.4 million, a decrease from $42.2 million at the end of the same quarter in 2024[25] - Proceeds from debt increased significantly to $148.4 million, while payments on debt also rose to $159.5 million[25] Dividends and Capital Expenditures - The company declared a quarterly cash dividend of $0.30 per share, payable on June 6, 2025[17] - The company paid dividends of $14.4 million during the quarter, compared to $11.9 million in the prior year[25] - Capital expenditures for the quarter were $10.0 million, down from $12.7 million in the prior year[25] Strategic Initiatives and Future Outlook - The company expects to focus on high-margin, value-added products to enhance profitability and future growth[4] - The company anticipates ongoing customer growth and plans to expand and diversify its product offerings[4] - The company aims to streamline operations and improve gross margins through strategic initiatives, including consolidating facilities and expanding fresh-cut facilities[4] - The company plans to invest in technology, including AI and biofertilizers, to manage costs and pricing effectively[4] - The company is committed to maintaining a prudent capital structure and creating long-term value for shareholders[4] Other Notable Events - The company incurred a gain on disposal of property, plant, and equipment of $0.8 million, compared to a loss of $14.8 million in the same quarter last year[36] - The company achieved a $0.8 million gain from the sale of idle land in Guatemala for the quarter ended March 28, 2025[3] - The company incurred $2.2 million in insurance recoveries related to damages from flooding at a production facility in Greece during Q3 2023[1] - The company reported $2.3 million in legal settlement charges for the quarter ended March 29, 2024[2] - The company has been recognized as one of "America's Most Trusted Companies" by Newsweek for three consecutive years[3]