Fresh Del Monte Produce (FDP) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 were $1,021.9 million, nearly flat year-over-year, driven by higher banana segment prices and favorable exchange rates, offset by lower fresh-cut vegetable volumes.

• Gross margin expanded in fresh and value-added products, with the pineapple program outperforming, while banana margins compressed due to higher costs, disease, and weather impacts.

• Strategic actions included the agreement to divest Mann Packing and the exit from underperforming banana farms in the Philippines, resulting in significant impairment charges and a focus on higher-margin products.

• Operating loss for Q3 2025 was $21.8 million, primarily due to asset impairment and other charges.

• Net loss attributable to shareholders was $29.1 million for Q3 2025, versus net income of $42.1 million in Q3 2024.

Financial highlights

• Q3 2025 net sales were $1,022 million; adjusted net sales $960 million, reflecting the exclusion of Mann Packing.

• Gross profit was $80.8 million; adjusted gross profit $88.1 million; gross margin 7.9%, adjusted gross margin 9.2%.

• Adjusted operating income was $40 million; adjusted net income was $33.1 million; adjusted diluted EPS was $0.69.

• Adjusted EBITDA was $58 million; adjusted EBITDA margin was 6.0%.

• Net cash from operating activities was $234 million for the first nine months, mainly due to working capital improvements.

Outlook and guidance

• Management expects the divestiture of Mann Packing and focus on higher-margin, value-added products to drive future gross margin expansion and sustained value.

• Net sales growth of approximately 2% year-over-year expected; fresh and value-added product segment gross margin (excluding Mann Packing) expected in the 11%-13% range.

• Banana segment gross margin expected to compress to around 4% due to supply and cost pressures; other products and services segment gross margin expected at 10%-12%.

• SG&A expenses forecasted at $205 million-$207 million; CapEx for the year revised to $60 million-$70 million.

• Net cash from operating activities expected to reach $190 million-$200 million.