Banana Segment Gross Margin Up 250 Basis Points
and Avocados Turned Around With Net Sales Up 15% in the Third
Quarter 2023
Gross Profit Margin for the Nine Months Up Over
100 Basis Points to 8.7% Driven by Majority of Product
Offerings
Diluted Earnings Per Share for the Nine Months
Increased 17% to $1.97 from $1.68 in the Prior-Year Period
Long-Term Debt Reduced by 26% to $401.0 million
at End of the Third Quarter 2023 from $539.8 million at End of
Fiscal Year 2022
Company Released its Annual Sustainability
Report, Reaffirming Steadfast Commitment to Conserving the
Planet
Fresh Del Monte Produce Inc. (NYSE: FDP), ("Fresh Del Monte" or
the "Company") today reported financial results for the third
quarter and the nine months ended September 29, 2023.
“We delivered solid results for the first nine months of 2023
driven by higher gross margins, strong adjusted EBITDA and adjusted
earnings per share growth compared with the same period last year.
We also continued to return shareholder value by reducing our debt,
improving efficiencies and continuing to deliver innovation-led,
new-to-market products,” said Mohammad Abu-Ghazaleh, Fresh Del
Monte’s Chairman and Chief Executive Officer. “Our recently
published annual sustainability report outlines the progress we’ve
made on our goals in various areas including shrinkage and waste —
goals reached through initiatives we believe will lead to
sustainable growth.”
Financial highlights for the third quarter 2023:
Net sales for the third quarter of 2023 were $1,003.1 million
compared with $1,053.5 million in the prior-year period. The net
sales variance was primarily driven by lower sales volume in the
fresh and value-added product segment and a decrease in sales in
the other products and services segment due to softened global
demand in our third-party ocean freight business. Partially
offsetting the net sales variance were higher selling prices of
non-tropical fruit and fresh-cut fruit and higher volumes and per
unit selling price of avocados.
Gross profit for the third quarter of 2023 was $74.4 million
compared with $88.0 million in the prior-year period. Gross profit
was impacted by lower sales volume across most products, a stronger
Costa Rican colon and Mexican peso, and the inventory write-off and
clean-up costs related to the flooding of a seasonal production
facility in Greece due to heavy rainstorms, partially offset by
lower distribution and ocean freight costs. Excluding the impact
from the inventory write-off and clean-up costs related to the
flooding, Adjusted gross profit(1) for the third quarter of 2023
was $82.8 million compared with $88.0 million in the prior-year
period. There were no other product-related charges in the
prior-year period.
Operating income for the third quarter of 2023 was $25.4 million
compared with $51.0 million in the prior-year period. The variance
in operating income was primarily due to lower gross profit,
impairment charges due to low-yield banana farms in the
Philippines, and the damage related to the floods in Greece.
Excluding these items, Adjusted operating income(1) was $34.3
million compared with $41.2 million in the prior-year period.
(1) Non-GAAP financial measure.
Reconciliations and other information required by Regulation G can
be found below under "Non-GAAP Measures."
Adjusted operating income also excludes a $2.0 million gain on
sale primarily related to the sale of a carrier vessel. In the
prior-year period, Adjusted operating income excludes a $9.9
million one-time benefit related to a reduction in a North America
environmental reserve.
FDP net income(2) for the third quarter of 2023 was $8.4 million
compared with $33.3 million in the prior-year period and Adjusted
FDP net income(1) was $17.2 million compared with $25.9 million in
the prior-year period. Adjusted FDP net income for the third
quarter of 2023 excludes the abovementioned other product-related
charges, asset impairment and other charges, and gain on sale of
assets, net of tax effect. In the prior-year period, Adjusted FDP
net income excludes the abovementioned one-time benefit and a $2.4
million tax effect related to this adjustment.
Third Quarter 2023 Business Segment
Performance and Selected Financial Data
(As reported in business segment data)
Fresh Del Monte Produce Inc.
and Subsidiaries
Business Segment Data
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
September 29, 2023
September 30, 2022
Segment Data:
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
574.0
57
%
$
36.2
49
%
6.3
%
$
599.8
57
%
$
55.1
62
%
9.2
%
Banana
384.7
38
%
31.9
43
%
8.3
%
388.4
37
%
22.6
26
%
5.8
%
Other products and services
44.4
5
%
6.3
8
%
14.2
%
65.3
6
%
10.3
12
%
15.7
%
$
1,003.1
100
%
$
74.4
100
%
7.4
%
$
1,053.5
100
%
$
88.0
100
%
8.3
%
Nine months ended
September 29, 2023
September 30, 2022
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
1,895.0
57
%
$
145.3
50
%
7.7
%
$
2,004.9
59
%
$
148.9
58
%
7.4
%
Banana
1,258.6
38
%
125.7
44
%
10.0
%
1,216.1
36
%
82.6
32
%
6.8
%
Other products and services
158.5
5
%
17.2
6
%
10.9
%
181.4
5
%
27.0
10
%
14.9
%
$
3,312.1
100
%
$
288.2
100
%
8.7
%
$
3,402.4
100
%
$
258.5
100
%
7.6
%
(2) "FDP net income" as referenced
throughout this release is defined as Net income attributable to
Fresh Del Monte Produce Inc.
Third Quarter 2023 Business Segment Performance
Fresh and Value-Added
Products
Net sales for the third quarter of 2023 were $574.0
million compared with $599.8 million in the prior-year period,
primarily a result of lower sales volumes of non-tropical fruit,
pineapple, fresh-cut fruit, and fresh-cut vegetables as well as
prepared foods, partially offset by higher per unit selling prices
of non-tropical fruit, fresh- cut fruit and pineapple product
categories combined with higher sales volume and selling price of
avocados.
Gross profit for the third quarter of 2023 was $36.2
million compared with $55.1 million in the prior-year period. Gross
profit variance was primarily due to higher production and
procurement costs of most products, partially due to a stronger
Costa Rican colon and Mexican peso along with, lower net sales
volume, partially offset by higher selling prices and lower ocean
freight costs.
Gross profit for the third quarter of 2023 included $8.4 million
of other product-related charges comprised primarily of inventory
write-off and clean-up costs tied to the flooding of a seasonal
production facility in Greece due to heavy rainstorms. There were
no other product-related charges in the third quarter of 2022. As a
result of these factors, gross margin decreased to 6.3% compared
with 9.2% in the prior-year period.
Banana
Net sales for the third quarter of 2023 were $384.7
million compared with $388.4 million in the prior-year period,
primarily as a result of lower selling prices and sales volume in
North America mostly offset by higher sales volume and per unit
selling prices in Europe.
Gross profit for the third quarter of 2023 was $31.9
million compared with $22.6 million in the prior-year period. The
increase in gross profit was due to lower distribution, ocean
freight, and product costs partially offset by a stronger Costa
Rican colon. Gross margin increased to 8.3% compared with 5.8% in
the prior-year period.
Other Products and
Services
Net sales for the third quarter of 2023 were $44.4
million compared with $65.3 million in the prior-year period
primarily a result of lower net sales of third-party freight
services due to softened global demand.
Gross profit for the third quarter of 2023 was $6.3
million compared with $10.3 million in the prior-year period as a
result of lower third-party ocean freight net sales. Gross margin
was 14.2% compared with 15.7% in the prior-year period.
Cash Flows
Net cash provided by operating activities for the first nine
months of 2023 was $180.1 million compared with $105.7 million in
the prior-year period. The increase was primarily attributable to
lower working capital, mainly related to lower levels of raw
materials and packaging supplies inventory combined with higher net
income.
Total Long Term Debt
Total long-term debt remained sequentially relatively flat at
$401.0 million at the end of the third quarter of 2023 from $400.5
million at the end of the second quarter of 2023 and decreased by
approximately 26% from $539.8 million at the end of fiscal year
2022.
Quarterly Cash Dividend
On October 31, 2023, the Company's Board of Directors declared a
quarterly cash dividend of $0.20 per share, payable on December 8,
2023 to shareholders of record on November 15, 2023.
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated
Statements of Operations
(U.S. dollars in millions,
except share and per share data) - (Unaudited)
Quarter ended
Nine months ended
Statement of Operations:
September 29,
2023
September 30,
2022
September 29,
2023
September 30,
2022
Net sales
$
1,003.1
$
1,053.5
$
3,312.1
$
3,402.4
Cost of products sold
920.3
965.5
3,013.7
3,143.9
Other product-related charges
8.4
—
10.2
—
Gross profit
74.4
88.0
288.2
258.5
Selling, general and administrative
expenses
48.1
46.8
142.6
139.3
Gain (loss) on disposal of property, plant
and equipment, net and subsidiary
1.6
—
35.8
(2.2
)
Asset impairment and other charges
(credits), net
2.5
(9.8
)
9.5
(8.1
)
Operating income
25.4
51.0
171.9
125.1
Interest expense
6.0
6.2
20.5
17.3
Interest income
0.6
0.2
1.1
0.2
Other expense, net
7.1
9.1
22.7
15.7
Income before income taxes
12.9
35.9
129.8
92.3
Income tax provision
4.1
3.3
24.9
13.9
Net income
$
8.8
$
32.6
$
104.9
$
78.4
Less: Net income (loss) attributable to
redeemable and noncontrolling interests
0.4
(0.7
)
9.8
(1.9
)
Net income attributable to Fresh Del Monte
Produce Inc.
$
8.4
$
33.3
$
95.1
$
80.3
Earnings per share(1):
Basic
$
0.17
$
0.70
$
1.98
$
1.68
Diluted
$
0.17
$
0.69
$
1.97
$
1.68
Dividends declared per ordinary share
$
0.20
$
0.15
$
0.55
$
0.45
Weighted average number of ordinary
shares:
Basic
48,121,978
47,835,057
48,015,874
47,775,312
Diluted
48,261,757
47,984,075
48,209,443
47,909,161
(1) Earnings per share ("EPS") is
calculated based on Net income attributable to Fresh Del Monte
Produce Inc.
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated Balance
Sheets
(U.S. dollars in millions) -
(Unaudited)
September 29,
2023
December 30,
2022
Assets
Current assets:
Cash and cash equivalents
$
77.9
$
17.2
Trade accounts receivable, net
372.2
373.5
Other accounts receivable, net
92.0
91.0
Inventories, net
587.2
669.0
Assets held for sale
1.9
67.3
Prepaid expenses and other current
assets
34.2
23.4
Total current assets
1,165.4
1,241.4
Investment in and advances to
unconsolidated companies
22.3
18.0
Property, plant and equipment, net
1,275.6
1,309.5
Operating lease right-of-use assets
218.4
213.8
Goodwill
423.0
422.9
Intangible assets, net
130.2
135.0
Deferred income taxes
48.7
47.4
Other noncurrent assets
65.0
70.9
Total assets
$
3,348.6
$
3,458.9
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and accrued expenses
$
494.4
$
549.9
Current maturities of debt and finance
leases
1.4
1.3
Current maturities of operating leases
52.8
41.6
Other current liabilities
29.1
14.2
Total current liabilities
577.7
607.0
Long-term debt and finance leases
407.2
547.1
Retirement benefits
83.9
82.4
Deferred income taxes
66.6
71.6
Operating leases, less current
maturities
141.2
147.3
Other noncurrent liabilities
25.2
28.5
Total liabilities
1,301.8
1,483.9
Commitments and contingencies
Redeemable noncontrolling interest
—
49.4
Shareholders' equity:
Preferred shares
—
—
Ordinary shares
0.5
0.5
Paid-in capital
598.8
548.1
Retained earnings
1,465.8
1,397.6
Accumulated other comprehensive loss
(34.8
)
(41.5
)
Total Fresh Del Monte Produce Inc.
shareholders' equity
2,030.3
1,904.7
Noncontrolling interests
16.5
20.9
Total shareholders' equity
2,046.8
1,925.6
Total liabilities, redeemable
noncontrolling interest and shareholders' equity
$
3,348.6
$
3,458.9
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(U.S. dollars in millions) -
(Unaudited)
Nine months ended
September 29,
2023
September 30,
2022
Operating activities:
Net income
$
104.9
$
78.4
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
64.9
70.2
Amortization of debt issuance costs
0.4
0.5
Asset impairments
8.1
0.2
Share-based compensation expense
7.6
4.9
Change in uncertain tax positions
0.5
0.4
Deferred income taxes
(5.0
)
0.8
(Gain) loss on disposal of property, plant
and equipment and subsidiary
(35.8
)
2.2
Adjustment of Kunia Well Site accrual
—
(9.9
)
Other, net
(0.5
)
0.7
Changes in operating assets and
liabilities:
Receivables
(7.1
)
(24.1
)
Inventories
74.7
(32.5
)
Prepaid expenses and other current
assets
(3.4
)
(2.2
)
Accounts payable and accrued expenses
(33.8
)
16.7
Other assets and liabilities
4.6
(0.6
)
Net cash provided by operating
activities
180.1
105.7
Investing activities:
Capital expenditures
(40.7
)
(35.8
)
Proceeds from sales of property, plant and
equipment and subsidiary
115.5
7.6
Cash paid from settlement of derivatives
not designated as hedges
—
(0.2
)
Investments in unconsolidated
companies
(4.4
)
(9.3
)
Other investing activities
(0.5
)
0.1
Net cash provided by (used in)
investing activities
69.9
(37.6
)
Financing activities:
Proceeds from debt
383.2
657.6
Payments on debt
(522.0
)
(690.6
)
Purchase of redeemable noncontrolling
interest
(5.2
)
—
Distributions to noncontrolling
interests
(17.9
)
(0.9
)
Share-based awards settled in cash for
taxes
(0.8
)
(1.6
)
Dividends paid
(26.4
)
(21.5
)
Other financing activities
(2.1
)
—
Net cash used in financing
activities
(191.2
)
(57.0
)
Effect of exchange rate changes on
cash
1.9
0.7
Net increase (decrease) in cash and cash
equivalents
60.7
11.8
Cash and cash equivalents, beginning
17.2
16.1
Cash and cash equivalents, ending
$
77.9
$
27.9
Non-GAAP Measures
The Company's results are determined in accordance with U.S.
generally accepted accounting principles (GAAP). Certain
information presented in this press release reflects adjustments to
GAAP measures such as amounts related to asset impairment and other
charges, net, gain on disposal of property, plant and equipment,
net and subsidiary, and other product-related charges. These
adjustments result in non-GAAP financial measures and are referred
to in this press release as Adjusted gross profit, Adjusted gross
margin, Adjusted operating income, Adjusted FDP net income, and
Adjusted diluted EPS. Management believes these adjustments provide
a more comparable analysis of the underlying operating performance
of the business.
This press release also includes non-GAAP measures such as
EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin.
EBITDA is defined as net income attributable to Fresh Del Monte
Produce Inc. excluding interest expense, net, provision for income
taxes, depreciation and amortization, and share-based compensation
expense. Adjusted EBITDA represents EBITDA with additional
adjustments for non-recurring items. EBITDA margin represents
EBITDA as a percentage of net sales, and Adjusted EBITDA margin
represents Adjusted EBITDA as a percentage of net sales.
Adjusted gross profit, Adjusted operating income, Adjusted FDP
net income, and Adjusted EBITDA provide the Company with an
understanding of the results from the primary operations of its
business. The Company uses these metrics because management
believes they provide more comparable measures to evaluate
period-over-period operating performance since they exclude special
items that are not indicative of the Company's core business or
operations. These measures may be useful to an investor in
evaluating the underlying operating performance of the Company's
business because these measures:
- Are used by investors to measure a company's comparable
operating performance;
- Are financial measurements that are used by lenders and other
parties to evaluate creditworthiness; and
- Are used by the Company's management for various purposes,
including as measures of performance of its operating entities, as
a basis of strategic planning and forecasting, and in certain cases
as a basis for incentive compensation.
Because all companies do not use identical calculations, the
Company's presentation of these non-GAAP financial measures may not
be comparable to similarly titled measures used by other companies.
Reconciliations of non-GAAP financial measures to the most directly
comparable GAAP financial measures are provided in the financial
tables that accompany this release.
Fresh Del Monte Produce Inc.
and Subsidiaries
Non-GAAP
Reconciliation
(U.S. dollars in millions,
except per-share amounts) - (Unaudited)
Quarter ended
September 29,
2023
September 30,
2022
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
As reported
$
74.4
$
25.4
$
8.4
$
0.17
$
88.0
$
51.0
$
33.3
$
0.69
Adjustments:
Other product-related charges (1)
8.4
8.4
8.4
0.17
—
—
—
—
Asset impairment and other charges
(credits), net (2)
—
2.5
2.5
0.05
—
(9.8
)
(9.8
)
(0.20
)
(Gain) on disposal of property, plant and
equipment, net and subsidiary (3)
—
(2.0
)
(2.0
)
(0.04
)
—
—
—
—
Tax effects of all adjustments (5)
—
—
(0.1
)
—
—
—
2.4
0.05
As adjusted
$
82.8
$
34.3
$
17.2
$
0.35
$
88.0
$
41.2
$
25.9
$
0.54
Nine months ended
September 29,
2023
September 30,
2022
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
As reported
$
288.2
$
171.9
$
95.1
$
1.97
$
258.5
$
125.1
$
80.3
$
1.68
Adjustments:
Other product-related charges (1)
10.2
10.2
10.2
0.21
—
—
—
—
Asset impairment and other charges
(credits), net (2)
—
9.5
9.5
0.20
—
(8.1
)
(8.1
)
(0.17
)
(Gain) on disposal of property, plant and
equipment, net and subsidiary (3)
—
(38.3
)
(38.3
)
(0.79
)
—
(2.0
)
(2.0
)
(0.04
)
Other adjustments (4)
—
—
7.6
0.16
—
—
—
—
Tax effects of all adjustments (5)
—
—
5.9
0.12
—
—
2.6
0.05
As adjusted
$
298.4
$
153.3
$
90.0
$
1.87
$
258.5
$
115.0
$
72.8
$
1.52
Fresh Del Monte Produce Inc.
and Subsidiaries
Segment Gross Profit Non-GAAP
Reconciliation
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
September 29,
2023
September 30,
2022
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and services
Gross profit (as reported)
$
36.2
$
31.9
$
6.3
$
55.1
$
22.6
$
10.3
Adjustments:
Other product-related charges (1)
8.4
—
—
—
—
—
Adjusted Gross profit
$
44.6
$
31.9
$
6.3
$
55.1
$
22.6
$
10.3
Net Sales
$
574.0
$
384.7
$
44.4
$
599.8
$
388.4
$
65.3
Gross margin (a)
6.3
%
8.3
%
14.2
%
9.2
%
5.8
%
15.7
%
Adjusted Gross margin (b)
7.8
%
8.3
%
14.2
%
9.2
%
5.8
%
15.7
%
Nine months ended
September 29,
2023
September 30,
2022
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and services
Gross profit (as reported)
$
145.3
$
125.7
$
17.2
$
148.9
$
82.6
$
27.0
Adjustments:
Other product-related charges (1)
10.1
0.1
—
—
—
—
Adjusted Gross profit
$
155.4
$
125.8
$
17.2
$
148.9
$
82.6
$
27.0
Net Sales
$
1,895.0
$
1,258.6
$
158.5
$
2,004.9
$
1,216.1
$
181.4
Gross margin (a)
7.7
%
10.0
%
10.9
%
7.4
%
6.8
%
14.9
%
Adjusted Gross margin (b)
8.2
%
10.0
%
10.9
%
7.4
%
6.8
%
14.9
%
(a) Calculated as Gross profit as a
percentage of net sales.
(b) Calculated as Adjusted Gross profit as
a percentage of net sales
.
Fresh Del Monte Produce Inc.
and Subsidiaries
Reconciliation of EBITDA and
Adjusted EBITDA
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
Nine months ended
September 29,
2023
September 30,
2022
September 29,
2023
September 30,
2022
Net income attributable to Fresh Del Monte
Produce Inc.
$
8.4
$
33.3
$
95.1
$
80.3
Interest expense, net
5.4
6.0
19.4
17.1
Income tax provision
4.1
3.3
24.9
13.9
Depreciation & amortization
21.2
22.9
64.9
70.2
Share-based compensation expense
2.4
2.1
7.6
4.9
EBITDA
$
41.5
$
67.6
$
211.9
$
186.4
Adjustments:
Other product-related charges (1)
8.4
—
10.2
—
Asset impairment and other charges
(credits), net (2)
2.5
(9.8
)
9.5
(8.1
)
(Gain) on disposal of property, plant and
equipment, net and subsidiary (3)
(2.0
)
—
(38.3
)
(2.0
)
Other adjustments (4)
—
—
7.6
—
Adjusted EBITDA
$
50.4
$
57.8
$
200.9
$
176.3
Net sales
$
1,003.1
$
1,053.5
$
3,312.1
$
3,402.4
Net income margin (a)
0.8
%
3.2
%
2.9
%
2.4
%
(a) Calculated as Net income attributable
to Fresh Del Monte Produce Inc. as a percentage of net sales.
EBITDA margin (b)
4.1
%
6.4
%
6.4
%
5.5
%
(b) Calculated as EBITDA as a percentage
of net sales.
Adjusted EBITDA margin (c)
5.0
%
5.5
%
6.1
%
5.2
%
(c) Calculated as Adjusted EBITDA as a
percentage of net sales.
(1)
Other product-related charges for the
quarter ended September 29, 2023, primarily consisted of an
inventory write-off and clean-up costs of $8.4 million due to
severe flooding caused by heavy rainstorms in Greece that impacted
a seasonal production facility. For the nine months ended September
29, 2023, other product-related charges also included inventory
write-offs of $1.8 million, which were primarily related to the
sale of two distribution centers in Saudi Arabia.
(2)
For the quarter ended September 29, 2023,
asset impairment and other charges (credits), net primarily
consisted of impairment charges related to low-yielding banana
farms in the Philippines of $3.7 million, property, plant and
equipment damage of $0.9 million due to severe flooding caused by
heavy rainstorms in Greece, and impairment of right-of-use asset in
South America of $0.7 million, partially offset by insurance
reimbursement and other credits of $2.8 million in connection with
a cybersecurity incident, which occurred during early 2023. Asset
impairment and other charges (credits), net for the nine months
ended September 29, 2023, also included impairment charges due to
low productivity grape vines in South America, idle land in Central
America, and expenses incurred in connection with a cybersecurity
incident which occurred during early 2023. The cybersecurity
incident temporarily impacted certain of the Company's operational
and information technology systems and resulted in incremental
costs primarily related to the engagement of specialized legal
counsel and other incident response advisors. The Company's
critical operational data and business systems were promptly
recovered and accordingly, the incident did not have a material
impact on the Company's financial results for the nine months ended
September 29, 2023, and is not expected to have a material impact
on future quarters. For the quarter ended September 30, 2022, asset
impairment and other charges (credits), net primarily consisted of
a $(9.9) million adjustment to the Company's environmental
liability related to Kunia Well Site (refer to the Form 10-Q for
the quarter ended September 30, 2022 for further information on
this matter). For the nine months ended September 30, 2022, asset
impairment and other charges (credits), net also included severance
expense in connection with (i) the departure of the Company's
former President and Chief Operating Officer and (ii) the planned
exit from a European facility.
(3)
Gain on disposal of property, plant and
equipment, net and subsidiary for the quarter ended September 29,
2023, primarily consisted of a gain of $2.4 million related to the
sale of a carrier vessel, partially offset by the loss of $0.4
million related to disposals of a farm in the Philippines and a
plantation in Costa Rica. For the nine months ended September 29,
2023, gain on disposal of property, plant and equipment, net and
subsidiary also included a $20.5 million gain on the sale of two
distribution centers and related assets in Saudi Arabia, a $7.0
million gain on the sale of an idle facility in North America, a
$3.8 million gain on the sale of the Company's plastics business
subsidiary in South America and gains on the sales of land assets
in South and Central America. For the nine months ended September
30, 2022, gain on disposal of property, plant and equipment, net
and subsidiary primarily related to a $1.4 million gain on the sale
of vacant land in Mexico.
(4)
Other adjustments for the nine months
ended September 29, 2023, primarily related to the portions of the
gain on disposal of property, plant and equipment, net and other
product-related charges which were attributable to a minority
interest partner, reflected in net income (loss) attributable to
redeemable and noncontrolling interests.
(5)
Tax effects are calculated in accordance
with ASC 740, Income Taxes, using the same methodology as the GAAP
provision of income taxes. Income tax effects of non-GAAP
adjustments are calculated based on the applicable statutory tax
rate for each jurisdiction in which such adjustments were incurred,
except for those items which are non-taxable for which the tax
provision was calculated at 0%. Certain non-GAAP adjustments were
subject to valuation allowances and therefore were calculated at
0%.
Conference Call and Webcast Data
Fresh Del Monte will host a conference call and simultaneous
webcast at 10:00 a.m. Eastern Time today to discuss the third
quarter 2023 financial results and to review the Company’s progress
and outlook. The webcast can be accessed on the Company’s Investor
Relations home page at https://investorrelations.freshdelmonte.com.
The call will be available for re-broadcast on the Company’s
website approximately two hours after the conclusion of the call
for a period of one year.
About Fresh Del Monte Produce Inc.
Fresh Del Monte Produce Inc. is one of the world's leading
vertically integrated producers, marketers and distributors of
high-quality fresh and fresh-cut fruit and vegetables, as well as a
leading producer and distributor of prepared food in Europe, Africa
and the Middle East. Fresh Del Monte markets its products worldwide
under the Del Monte® brand (under license from Del Monte Foods,
Inc.), a symbol of product innovation, quality, freshness and
reliability for over 135 years. The Company also markets its
products under the Mann™ brand and other related trademarks. Fresh
Del Monte Produce Inc. is not affiliated with certain other Del
Monte companies around the world, including Del Monte Foods, Inc.,
the U.S. subsidiary of Del Monte Pacific Limited, Del Monte Canada,
or Del Monte Asia Pte. Ltd. Fresh Del Monte is the first global
marketer of fruits and vegetables to commit to the “Science Based
Targets” initiative. In 2023, for the second consecutive year,
Fresh Del Monte Produce was ranked as one of "America's Most
Trusted Companies" by Newsweek based on an independent survey
rating companies on three different touchpoints, including customer
trust, investor trust, and employee trust. Fresh Del Monte Produce
is traded on the NYSE under the symbol FDP.
Forward-looking Information
This press release and the related earnings call contain certain
forward-looking statements regarding the intent, beliefs or current
expectations of the Company. These statements include statements
that are preceded by, followed by or include the words “believes”,
“expects”, “anticipates”, “may” or similar expressions with respect
to various matters. Specifically, this press release and the
earnings call contain forward-looking statements regarding the
Company’s plans and expectations for future performance, including
the Company’s (a) commitment to asset optimization, strategic
partnerships and product innovations and the impact on the
Company’s results of operations, as well as its ability to improve
efficiencies and lower debt; (b) anticipated demand for the
Company’s core products; (c) ability to launch a new pineapple
variety; (d) leveraging technologies to improve grower and
supply-related efficiencies; (e) continued focus on innovation and
value-added products; (f) strategies and goals for industry
innovation, including becoming a technology-driven, sustainable
company; (g) changes to, or launches of, new product lines,
partnerships or programs and the ability to expand into other
markets; (h) impact of inflation and foreign exchange rates on the
Company’s results; (i) expectations regarding the performance and
demand of the Company’s inland logistics solution. It is important
to note that these forward-looking statements are not guarantees of
future performance and involve risks and uncertainties. The
Company’s actual plans and performance may differ materially from
those in the forward-looking statements as a result of various
factors, including (i) macroeconomic factors, including inflation,
interest rates and foreign exchange rates; (ii) the Company’s
ability to leverage technologies to introducing new products and
enhance process, including its ability to successfully bring the
new pineapple variety to market, (iii) trends and other factors
affecting consumer preferences, including whether consumers are
receptive to the ideas and innovations made by the Company, (iv)
the ability of the new rebranding of the Company’s inland logistics
solution to drive financial growth s, (v) ability to identify
opportunities to leverage our experience in smart farming,
sustainability and marketing to enhance shareholder value and (v)
other factors outside the Company’s control that impact its and
other growers’ crop quality and yields. In addition, these
forward-looking statements and the information in this press
release and the earnings call are qualified in their entirety by
cautionary statements and risk factor disclosures contained in the
Company’s Securities and Exchange Commission filings, including the
Company’s most recently filed Annual Report on Form 10-K. All
forward-looking statements in this press release are based on
information available to us on the date hereof, and we assume no
obligation to update such statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101968886/en/
Monica Vicente Senior Vice President, Chief Financial
Officer 305-520-8433
Fresh Del Monte Produce (NYSE:FDP)
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