Net sales for Fresh Del Monte Produce for the third quarter of 2024, ending Sept. 27, were $1.019 billion, up from $1 billion in the prior-year period.
The increase in net sales was primarily driven by higher net sales in the company’s fresh and value-added product segment due to higher sales volume, as well as increased per-unit selling prices principally of avocado and pineapple, as a result of strong market demand, according to a news release.
“We are pleased to report strong performance in the third quarter,” said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh. “Our strategic focus on high-margin, value-added products continues to deliver positive results, demonstrating the strength of our product innovations and our commitment to driving long-term profitability and value for our shareholders.”
Fresh Del Monte is set to streamline its Mann Packing operations, but the company gave no specific details on the next steps.
“As committed, we have announced our decision on Mann Packing following our strategic review — a defining step that we believe will boost profitability, reinforce resilience and deliver sustained growth,” Abu-Ghazaleh said.
Avocado and pineapple growth
The increase in avocado and pineapple sales was partially offset by a decrease in net sales in the company’s banana segment, primarily driven by competitive market pressures, the release said.
Gross profit for the third quarter of 2024 was $93.8 million compared with $74.4 million in the prior-year period, according to the release.
The increase in gross profit was primarily driven by higher sales volume and higher per-unit selling prices in the company’s fresh and value-added product segment, partially offset by higher per-unit production and procurement costs, lower sales volume in the company’s banana segment and the negative impact of fluctuations in exchange rates, primarily related to a stronger Costa Rican colon, according to the company.
Operating income for the third quarter of 2024 was $53.9 million, compared with $25.4 million in the prior-year period. The increase in operating income was primarily driven by higher gross profit combined with the higher gain on the sale of property, plant and equipment, the release said.
Operating income for the third quarter of 2024 included asset impairment and other charges, net, of $0.2 million due to heavy wind and rainstorms in Chile, $7.7 million gain from the sale of a warehouse in Chile and $0.3 million gain from the sale of an idle packing facility in Costa Rica, according to the release.
Net banana sales for the third quarter of 2024 were $345.3 million, compared with $384.7 million in the prior year period. The decrease in net sales was primarily due to lower sales volume in the company’s North American region, due to competitive market pressures, and lower sales volume in the company’s Asia region, caused by decreased supply from the Philippines because of weather-related events, according to the release. The decrease was partially offset by higher per-unit selling prices in Asia, resulting from lower industry supply.
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