Fresh Del Monte Reports 3.4% Revenue Growth in Q2 2025, Increases Cash Flow and Assets

Fresh Del Monte Produce Inc. reported a notable increase in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the quarter ended June 27, 2025, the company achieved net sales of $1,182.5 million, a 3.4% increase from $1,139.7 million in the same period last year. The gross profit for the quarter rose to $120.1 million, compared to $113.2 million in the prior year, reflecting a gross margin improvement from 9.9% to 10.2%. For the first six months of 2025, net sales reached $2,280.8 million, up from $2,247.5 million, with gross profit increasing to $212.2 million from $195.4 million.

The company's financial results were bolstered by higher selling prices in its fresh and value-added products segment, which includes items such as pineapples and fresh-cut fruits. The increase in sales was also attributed to favorable foreign exchange fluctuations, particularly with the Japanese yen and British pound. However, the company faced challenges from increased production and distribution costs, including tariff-related charges in North America, which partially offset the gains in gross profit.

In terms of operational developments, Fresh Del Monte's total assets increased to $3,164.9 million as of June 27, 2025, up from $3,096.2 million at the end of 2024. The company reported a significant rise in cash and cash equivalents, which reached $85.5 million, compared to $32.6 million at the end of the previous fiscal year. The increase in cash was primarily driven by improved cash flow from operations, which amounted to $159.2 million for the first half of 2025, compared to $143.7 million in the same period of 2024.

The company also noted strategic initiatives, including a stock repurchase program approved in February 2025, allowing for the repurchase of up to $150 million of its ordinary shares. During the first half of 2025, Fresh Del Monte repurchased approximately 254,000 shares for $7.6 million. Additionally, the company has been actively managing its debt, with long-term debt decreasing to $205.2 million from $248.9 million, reflecting a focus on maintaining a healthy balance sheet.

Looking ahead, Fresh Del Monte remains cautious about the macroeconomic environment, particularly regarding ongoing geopolitical tensions and trade policy changes that could impact its operations. The company is closely monitoring these developments and their potential effects on pricing, supply chain logistics, and overall market conditions. Despite these challenges, Fresh Del Monte is optimistic about its ability to sustain growth through strategic pricing adjustments and operational efficiencies.