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.
"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.
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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