Fresh Del Monte Produce (FDP) Q1 2025 earnings summary

Executive summary

• Achieved a strong start to 2025 with solid demand in key categories, improved product mix, and operational efficiency, leading to year-over-year improvements in gross profit and margin, especially in fresh and value-added products.

• Pineapple demand exceeded supply, reinforcing category leadership; avocados and fresh cut fruit also saw robust consumer interest and are central to long-term growth strategy.

• Vertically integrated supply chain enabled minimal shipping delays despite global disruptions, providing service continuity.

• Net sales for Q1 2025 were $1,098.4 million, down from $1,107.9 million year-over-year, mainly due to lower banana segment sales and currency impacts, partially offset by gains in fresh and value-added products.

• Gross profit rose 12% year-over-year to $92.2 million, with gross margin expanding to 8.4% from 7.4%, driven by strong performance in fresh and value-added products.

Financial highlights

• Gross profit increased to $92.2 million from $82.3 million, with gross margin improving to 8.4% from 7.4% year-over-year and up from 6.8% sequentially.

• Operating income was $44.9 million, up from $44.1 million; adjusted operating income was $44.1 million, up from $30.6 million.

• Net income attributable to shareholders was $31.1 million, up from $26.1 million; adjusted net income was $30.3 million, up from $15.8 million.

• Diluted EPS was $0.64, up from $0.55; adjusted diluted EPS was $0.63, up from $0.34.

• Adjusted EBITDA was $61.3 million (5.6% of net sales), up from $43.5 million (3.9%).

Outlook and guidance

• Excluding tariffs and macroeconomic impacts, full-year 2025 results are expected to align with prior guidance.

• Net sales projected to grow 2% year-over-year; fresh and value-added segment gross margin expected at 10-11%; banana segment at 5-7%; other products and services at 12-14%.

• SG&A expenses forecasted at $205-$210 million; CapEx at $80-$90 million; net cash from operations at $180-$190 million.

• Management expects recently announced U.S. tariffs to materially increase cost of products sold, with uncertain ability to pass on price increases and potential for material gross profit impact if demand is affected.

• Focus remains on high-margin, value-added products, operational streamlining, and innovation to drive long-term growth.