Company reports on higher net income despite a dip in sales during 2024, with pineapples, avocados and fresh-cut fruit the star performers
Fresh Del Monte Produce has released its financial results for 2024, revealing a turnaround in net income when compared with the previous year.
The group reported that net income stood at US$142.2mn, compared with a net loss of US$11.4mn in 2023.
Adjusted net income was US$116.2mn, also up from the US$101.7mn recorded in the prior-year period.
For full fiscal year 2024, net sales came in at US$4.28bn compared with US$4.32bn in 2023.
The decrease in net sales was, Del Monte explained, primarily due to lower sales volume and per unit selling prices in its banana segment, as well as a negative impact of exchange rate fluctuations, primarily versus the Japanese yen and Korean won.
This fall was partially offset by higher per unit selling prices and sales volume in the company’s fresh and value-added products segment, it noted.
Gross profit was US$357.9mn, up from US$350.7mn, attributed to higher net sales in the fresh and value-added products segment, along with lower ocean freight costs.
Del Monte said this was offset by lower net sales in the banana segment, higher production and procurement costs, and the negative impact of fluctuations in exchange rates, primarily related to the Costa Rican colon and Japanese yen.
”Our full-year 2024 results reflect the effectiveness of our strategic focus and operational improvements,” said Mohammad Abu-Ghazaleh, chairman and CEO at Del Monte.
”This success, achieved despite facing several challenges in 2024, was primarily driven by the exceptional performance of our fresh and value-added products segment, particularly pineapples, avocados, and fresh-cut fruit, which continue to fuel our growth and deliver strong gross margins for the company.
“Other notable 2024 performance highlights include a reduction in long-term debt, driven by strong cash flow, and a quarterly dividend increase for the third consecutive year,” he continued.
”Building on this momentum and focusing on our core strengths, we remain committed to expanding key segments and delivering sustainable value for our shareholders.”
