Fresh Del Monte Produce Inc. reported a slight decline in net sales for the fiscal year ending December 27, 2024, totaling $4.28 billion, down from $4.32 billion in 2023. The decrease was primarily attributed to lower sales volumes and per-unit selling prices in the banana segment, alongside adverse foreign exchange fluctuations, particularly against the Japanese yen and Korean won. However, the fresh and value-added products segment saw an increase in both sales volume and prices, particularly for avocados and pineapples, which helped mitigate some of the overall decline.
The company's gross profit increased by 2% to $357.9 million, compared to $350.7 million in the previous year. This improvement was driven by higher sales in the fresh and value-added products segment and reduced ocean freight costs. Despite this, the banana segment's gross profit fell significantly to $86.8 million from $163.3 million in 2023, reflecting the impact of increased production costs and lower sales volumes. The overall gross margin for the company improved slightly to 8.4% from 8.1% in the prior year.
In terms of strategic developments, Fresh Del Monte completed the sale of certain assets from its Fresh Leaf Farms subsidiary, generating proceeds of $17.6 million. The company also consolidated several operations into a single facility in Gonzales, California, aiming to enhance operational efficiency and reduce overhead costs. Additionally, Fresh Del Monte's workforce included approximately 7,499 full-time salaried employees and 26,299 full-time hourly employees, with seasonal hires bringing the total to over 33,000 during peak production periods.
Looking ahead, Fresh Del Monte anticipates continued challenges from inflationary pressures and fluctuating commodity prices, which could impact profitability. The company is focused on expanding its fresh-cut and prepared foods operations, particularly in the Middle East and North Africa, where it sees significant growth potential. Furthermore, the company plans to invest approximately $80 million to $90 million in capital expenditures in 2025, primarily aimed at enhancing its pineapple production operations and expanding its fresh-cut and prepared foods facilities in Africa.
About FRESH DEL MONTE PRODUCE INC
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