Fresh Del Monte Produce Reveals Third Quarter and Nine Months Earnings for Fiscal 2023; Mohammad Abu-Ghazaleh Comments
CORAL GABLES, FL - We are getting a peek at Fresh Del Monte Produce’s ongoing growth as the supplier releases its financial results for the third quarter and the nine months ended September 29, 2023.
“We delivered solid results for the first nine months of 2023 driven by higher gross margins, strong adjusted EBITDA, and adjusted earnings per share growth compared with the same period last year. We also continued to return shareholder value by reducing our debt, improving efficiencies, and continuing to deliver innovation-led, new-to-market products,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. “Our recently published annual sustainability report outlines the progress we’ve made on our goals in various areas including shrinkage and waste—goals reached through initiatives we believe will lead to sustainable growth.”
In the report, Fresh Del Monte noted that its sales for the third quarter of 2023 were $1,003.1 million (or $1.0031 billion) compared with $1,053.5 million ($1.0535 billion) in the prior-year period.
According to the release, this net sales variance was primarily driven by lower sales volume in the fresh and value-added product segment and a decrease in sales in the other products and services segment due to softened global demand in the company’s third-party ocean freight business; partially offsetting the net sales variance were higher selling prices of non-tropical fruit and fresh-cut fruit and higher volumes and per unit selling price of avocados.
Other key highlights from the report include:
- Banana segment gross margin up 250 basis points
- Avocados turned around with net sales up 15 percent in Q3
- Gross profit margin for the nine months up over 100 basis points to 8.7 percent, driven by majority of product offerings
- Released its annual sustainability report, reaffirming its steadfast commitment to conserving our planet
- Long-term debt reduced by 26 percent to $401 million at the end of Q3
To view the report in depth, click here.
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