Fresh Del Monte Produce (FDP) Q4 2024 earnings summary

Executive summary

• Fresh and value-added segments, especially pineapples, avocados, and fresh-cut fruit, drove strong 2024 performance and improved gross margins to 8.4% from 8.1% year-over-year.

• Long-term debt was reduced by 39% to $244 million, supported by strong cash flow.

• Quarterly dividend increased for the third consecutive year, now at $0.30 per share.

• Sustainability initiatives, including a new biomass program and SEAL Environment Initiative Award, highlighted environmental leadership.

• Expanded global sourcing, automation in fresh-cut facilities, and diversified banana sourcing, including the Somalia project, enhanced efficiency and market reach.

Financial highlights

• Q4 2024 net sales were $1,013 million (up from $1,009 million YoY); full-year net sales were $4,280 million (down from $4,321 million YoY).

• Q4 gross profit was $69 million (6.8% margin), up from $63 million (6.2% margin) YoY; full-year gross profit was $358 million (8.4% margin), up from $351 million (8.1% margin).

• Full-year net income was $142 million, compared to a net loss of $11 million in 2023; adjusted net income was $116 million, up from $102 million.

• Diluted EPS for 2024 was $2.96, compared to a loss of $0.24 in 2023; adjusted diluted EPS was $2.42, up from $2.12.

• Adjusted EBITDA for 2024 was $236 million, in line with the prior year.

Outlook and guidance

• 2025 net sales projected to rise 2%, led by avocado, pineapple, fresh-cut fruit, and banana growth.

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

• SG&A expenses forecasted at $205-$210 million; capital expenditures at $80-$90 million, focused on pineapple, banana, and facility upgrades.

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

• Focus remains on high-margin products, expanding global sourcing, and building the fresh-cut program as a key profit center.