Fresh Del Monte Produce Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a slight increase in net sales but a significant decline in profitability. For the quarter ended September 26, 2025, the company achieved net sales of $1,021.9 million, a marginal increase from $1,019.5 million in the same period last year. However, the company recorded a net loss of $29.1 million, compared to a net income of $42.1 million in the prior year. For the nine months ended September 26, 2025, net sales rose to $3,302.8 million from $3,267.0 million, but net income fell to $58.8 million from $121.8 million.
The decline in profitability was attributed to several factors, including increased costs associated with production and procurement, particularly in the banana segment, as well as higher distribution expenses. The gross profit for the third quarter decreased to $80.8 million from $93.8 million year-over-year, while gross profit for the nine months increased slightly to $293.1 million from $289.2 million. The company also faced asset impairment charges of $55.5 million in the third quarter, primarily due to the abandonment of operations in the Philippines and the planned divestiture of the Mann Packing business.
In terms of strategic developments, Fresh Del Monte announced the planned divestiture of its Mann Packing business, which is expected to close in the fourth quarter of 2025. The transaction is valued at $19 million, plus inventory, and includes a five-year lease agreement for the Gonzales, California production facility. This divestiture is part of the company's strategy to focus on higher-return businesses. The assets related to Mann Packing have been classified as held for sale, resulting in a pre-tax loss of approximately $15.7 million recognized in the financial statements.
Operationally, the company reported a working capital of $609.4 million as of September 26, 2025, an increase from $599.8 million at the end of the previous fiscal year. Fresh Del Monte's cash and cash equivalents rose to $97.2 million from $32.6 million, reflecting improved liquidity. The company also repurchased 455,364 shares for $14.8 million under its stock repurchase program, which has a total authorization of $150 million. Looking ahead, Fresh Del Monte remains cautious about the macroeconomic environment, including the impact of tariffs and geopolitical tensions, which could affect its operations and financial performance. The company continues to monitor these factors closely as it navigates its strategic initiatives and operational challenges.
About FRESH DEL MONTE PRODUCE INC
Fresh Del Monte Produce Inc. is a leading global producer, marketer, and distributor of high-quality fresh and fresh-cut fruits and vegetables, including pineapples, bananas, avocados, and prepared foods. Operating through extensive sourcing, logistics, and distribution networks, the company serves retail, foodservice, and wholesale markets worldwide, primarily under the Del Monte brand. Its core value lies in product quality, innovation, and supply chain efficiency.
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