Fresh Del Monte Boosts Profits Despite Sales Dip in Q1 2025

Published 8 hours agoFDP

Fresh Del Monte Boosts Profits Despite Sales Dip in Q1 2025

Fresh Del Monte Produce Inc. announced its financial results for the first quarter of 2025, revealing a notable increase in profitability despite falling sales. The company's net sales declined to $1.037 billion from $1.118 billion a year earlier, primarily due to a 5-7% drop in banana segment sales volumes and a 4-5% decrease in per-unit pricing, as reported by Investing.com.

The adjusted gross profit saw a significant rise, improving to $81.3 million from $48.8 million in the previous year. This was largely attributed to the strong performance of the fresh and value-added product segments, particularly pineapples and avocados. Net income for the quarter hit $54 million, underscoring the company's strong profitability amidst lower sales. Additionally, Fresh Del Monte's adjusted EBITDA was reported at $89 million, indicative of solid operational success.

Fresh Del Monte has shown a commitment to shareholder returns by declaring a quarterly dividend of $0.25 per share. The company also plans capital expenditures between $60-65 million for the year to support growth initiatives. They have successfully launched fresh guacamole and plan to expand production. Moreover, the company anticipates a 3% growth in pineapple production over the next three years, which highlights their strategic shift towards high-margin products and ongoing efficiency improvements.

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