Fresh Del Monte Produce (FDP) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased 4% year-over-year to $1,183 million, with gross profit up 6% and gross margin expanding to 10.2%, driven by strong demand for proprietary pineapple varieties and fresh-cut fruit.

• Pineapple demand exceeded supply, with premium varieties and new market entries like Pinkglow in the UAE supporting growth; R&D milestone reached with upcoming field testing of TR4-resistant banana lines.

• Industry-wide port disruptions in Costa Rica and global banana shortages due to climate-driven disease and Black Sigatoka impacted operations and supply.

• Balance sheet remained robust, supported by strong cash flow and a 29% reduction in long-term debt year-over-year.

• Operational efficiencies, innovation in value-added products, and global expansion in fresh-cut fruit and pineapple segments supported growth.

Financial highlights

• Q2 2025 net sales reached $1,183 million (up from $1,140 million); gross profit was $120 million (up from $113 million); gross margin expanded to 10.2% from 9.9%.

• Adjusted operating income was $69 million (vs. $65 million prior year); adjusted net income $59 million (vs. $51 million); adjusted diluted EPS $1.23 (vs. $1.06).

• EBITDA for the quarter was $94.9 million, with an EBITDA margin of 8.0%; adjusted EBITDA was $95.4 million, with an adjusted EBITDA margin of 8.1%.

• Net cash from operations for six months was $159 million (up from $144 million); capital expenditures were $21.6 million.

• Quarterly dividend declared at $0.30/share (up from $0.25), with $28.8 million paid in H1 2025.

Outlook and guidance

• Full-year 2025 net sales growth expected at 2% year-over-year, with focus on high-margin, value-added products and operational streamlining.

• Fresh and value-added segment gross margin expected at 10%-11%; banana segment at 5%-7%; other products/services at 12%-14%.

• CapEx revised to $70-$80 million; net cash from operations expected at $180-$190 million.

• Management expects continued impact from tariffs, shipping disruptions, and commodity costs, with mitigation efforts focused on pricing and logistics.

• Cash on hand, available credit, and operating cash flows are expected to be sufficient to meet obligations over the next twelve months.