Fresh and Value-Added Products Propel Fresh Del Monte Produce’s Record Q3 Growth; Mohammad Abu-Ghazaleh Details


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Fri. November 1st, 2024 - by Peggy Packer

CORAL GABLES, FL - Fresh Del Monte Produce has reported robust financial results for the third quarter of fiscal 2024. ​The company's laser focus on high-margin, value-added products is proving to be a recipe for success, driving improved gross margins and setting the stage for sustained growth.

Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer, Fresh Del Monte Produce

"We are pleased to report strong performance in the third quarter. 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," expressed Chairman and Chief Executive Officer Mohammad Abu-Ghazaleh.

Net sales for the third quarter of 2024 reached $1,019.5 million, up from $1,003.1 million in the prior year period. This increase was primarily driven by higher sales volume and increased per-unit selling prices in the fresh and value-added product segment, particularly for avocados and pineapples.

Fresh Del Monte Produce has reported robust financial results for the third quarter of fiscal 2024

Gross profit for the quarter rose to $93.8 million, compared to $74.4 million in the prior-year period. The gross margin increased to 9.2 percent from 7.4 percent, reflecting a 180 basis point improvement. This growth was attributed to higher sales volume and better pricing in the fresh and value-added product segment.

Operating income for Q3 2024 was $53.9 million, a significant increase from $25.4 million in the prior-year period. This improvement was driven by higher gross profit and gains from the sale of property, plant, and equipment.

The company also reported a net income of $42.1 million for the quarter, compared to $8.4 million in the prior-year period. Adjusted net income, excluding certain charges and gains, was $37 million, up from $17.2 million in the prior-year period.

In a strategic move, Fresh Del Monte has finalized its decision regarding Mann Packing following a comprehensive review. This decision is expected to boost profitability and position the company for future growth.

For more information about Fresh Del Monte’s third-quarter earnings, click here.

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