Gross Profit Margin for Fiscal Year 2023
Increased to 8.1% from 7.7% in Prior-Year
Banana Segment Gross Margin for Fiscal Year
2023 Up 250 Basis Points Compared with Prior-Year
Company Exploring Strategic Alternatives for
Mann Packing Operation
Long-Term Debt Reduced by $140 Million or 26%
to $400 million at End of Fiscal Year 2023
Company Increased Quarterly Dividend by 25% for
Second Consecutive Year
Fresh Del Monte Produce Inc. (NYSE: FDP), ("Fresh Del Monte" or
the "Company") today reported financial results for the fourth
quarter and the full fiscal year ended December 29, 2023.
"We are pleased with many aspects of our full year 2023 results
including our strong gross margins and cash flow which enabled us
to have strong full year adjusted earnings per share growth, reduce
our long-term debt by $140 million to end the year with an adjusted
leverage ratio of 1.7x and continue to return value to shareholders
by increasing our dividend 25% for the second year in a row. Our
ability to control costs and sell underutilized assets for $120
million in 2023 allowed us to achieve the Company's highest full
year gross profit and margin since 2016,” said Mohammad
Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive
Officer.
Mr. Abu-Ghazaleh added, "During the fall of this year, we
conducted a strategic review and assessed our operational
priorities of our North America operations, including Mann Packing.
Preliminary findings of this review were finalized in the fourth
quarter. As a result of this strategic review and other factors, we
recorded a non-cash impairment of $131.2 million in the quarter,
primarily related to our Mann Packing operation. We are exploring
strategic alternatives for this business while continuing to focus
on improving profitability in all areas of our business, including
innovations and strategic partnerships, in addition to controlling
our costs this next fiscal year."
Financial highlights for the fourth quarter 2023:
Net sales for the fourth quarter of 2023 was $1,008.6 million
compared with $1,040.0 million in the prior-year period. The
decrease in net sales was driven by lower net sales of banana and
other products and services segments. This was partially offset by
higher net sales in the fresh and value-added product segment
driven by higher per unit selling prices across most products,
principally non-tropical fruit, avocados, fresh-cut fruit and
vegetables, and pineapples.
Gross profit for the fourth quarter of 2023 was $62.5 million
compared with $81.7 million in the prior-year period. The decrease
to gross profit was a result of lower net sales, coupled with
higher per unit production costs driven by the negative impact of
exchange rate fluctuations principally versus a stronger Costa
Rican colon, partially offset by lower per unit distribution and
ocean freight costs.
Adjusted gross profit(1) for the fourth quarter 2023 was $56.2
million compared with $81.7 million in the prior-year period.
Adjusted gross profit for the fourth quarter excludes $(6.3)
million of other product-related credits primarily related to
$(6.9) million of insurance recoveries and recovery of inventory
written-off due to severe flooding caused by heavy rainstorms in
Greece during the third quarter of 2023, partially offset by
inventory write-offs of $0.6 million as a result of reroutes of
shipments impacted by conflict in the Red Sea. There were no other
product-related charges in the fourth quarter 2022.
Operating loss for the fourth quarter of 2023 was $(113.4)
million compared with operating income of $31.2 million in the
prior-year period. Operating losses were driven by a $133.8 million
non-cash asset impairment charge, primarily pertaining to
long-lived assets in North America in the fresh and value-added
product segment and goodwill in our prepared foods reporting
unit.
Adjusted operating income(1) for the fourth quarter of 2023 was
$12.0 million compared with $34.2 million in the prior-year period.
Adjusted operating income excludes the above-mentioned $133.8
million non-cash asset impairment, a $(6.3) million other
product-related credit, and a gain on asset sale of $2.1 million
primarily related to the sale of a vessel. In the prior-year
period, Adjusted operating income excluded a $3.3 million asset
impairment principally due to banana-related fixed assets in the
Philippines due to flooding from heavy rainfall and a gain on asset
sale of $0.3 million related to the sale of vehicles in the Middle
East.
FDP net loss(2) for the fourth quarter of 2023 was $(106.4)
million compared with FDP net income of $18.3 million in the
prior-year period and Adjusted FDP net income(1) was $11.8 million
compared with $21.5 million in the prior-year period. Adjusted FDP
net income for the fourth quarter of 2023 excludes the
above-mentioned other product-related credit, asset impairment and
other charges, and gain on sale of assets, net of tax effect. In
the prior-year period, Adjusted FDP net income excludes asset
impairment and other charges, gain on sale of assets, net of tax
effect.
(1)
Non-GAAP financial measure.
Reconciliations and other information required by Regulation G can
be found below under "Non-GAAP Measures."
(2)
"FDP net income/loss" as referenced
throughout this release is defined as Net income/loss attributable
to Fresh Del Monte Produce Inc.
Financial highlights for the full fiscal year 2023:
For full fiscal year 2023, net sales was $4,320.7 million
compared with $4,442.3 million in the prior-year period. Net sales
were primarily impacted by lower sales volumes in all segments,
partially offset by higher per unit selling prices for the banana
and fresh and value-added products segments, despite a negative
impact of exchange rate for the Japanese yen, Korean won, and
British pound. The negative impact of fluctuations in exchange
rates was partially mitigated by our foreign currency hedges.
For full fiscal year 2023, gross profit was $350.7 million
compared with $340.2 million in the prior-year period. The increase
to gross profit was primarily driven by higher per unit selling
prices in the banana and fresh and value-added products coupled
with lower distribution costs, partially offset by higher per unit
production costs driven by the negative impact of a stronger Costa
Rican colon.
Adjusted gross profit for full fiscal year 2023 was $354.5
million compared with $340.2 million in the prior-year period.
Adjusted gross profit for full fiscal year 2023 excludes $3.8
million of other product-related charges primarily related to $1.5
million of inventory write-off due to the sale of two distribution
centers in Saudi Arabia, $1.4 million of inventory write-off and
clean-up cost, net of insurance recoveries, tied to the flooding of
a seasonal production facility in Greece, and $0.6 million of
inventory write-offs due to shipment rerouting impacted by the
conflict in the Red Sea. There were no other product-related
charges in 2022.
For the full fiscal year 2023, operating income was $58.5
million compared with $156.3 million in the prior-year period. The
decrease was driven by a $143.4 million asset impairment and other
charge pertaining to the asset impairment in the fourth quarter,
partially offset by higher gross profit and $40.4 million gain on
asset sales related to the sale of two distribution centers in
Saudi Arabia, sale of an idle facility in North America, sale of
the plastics business in South America, sale of two carrier
vessels, and sale of land assets in South and Central America.
For the full fiscal year 2023, Adjusted operating income was
$165.3 million compared with $149.2 million in the prior-year
period which excludes the above-mentioned other product-related
charges, asset impairment charges, and gains on asset sales. The
year-over-year Adjusted operating income increase was primarily
driven by higher gross profit.
For the full fiscal year 2023, FDP net loss was $(11.4) million
compared with FDP net income of $98.6 million in the prior-year
period and Adjusted FDP net income was $101.7 million compared with
$94.3 million in the prior-year period. Adjusted FDP net income for
the full fiscal year 2023 excludes the above-mentioned other
product-related charges, asset impairment and other charges and
gain on sale of assets, net of tax effect. In the prior-year
period, Adjusted FDP net income excludes asset impairment and other
charge and gain on sale of assets, net of tax effect.
Fourth Quarter and Full Fiscal Year
2023 Business Segment Performance and Selected Financial
Data
(As reported in business segment data)
Fresh Del Monte Produce Inc.
and Subsidiaries
Business Segment Data
(U.S. dollars in millions,
except for Gross Margin) - (Unaudited)
Quarters ended
December 29, 2023
December 30, 2022
Segment Data:
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
582.8
58
%
$
22.0
35
%
3.8
%
$
576.9
55
%
$
34.1
42
%
5.9
%
Banana
379.6
38
%
37.6
60
%
9.9
%
403.8
39
%
38.1
47
%
9.4
%
Other products and services
46.2
4
%
2.9
5
%
6.3
%
59.3
6
%
9.5
11
%
16.0
%
$
1,008.6
100
%
$
62.5
100
%
6.2
%
$
1,040.0
100
%
$
81.7
100
%
7.9
%
Years ended
December 29, 2023
December 30, 2022
Segment Data:
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
2,477.8
57
%
$
167.3
48
%
6.8
%
$
2,581.8
58
%
$
183.0
54
%
7.1
%
Banana
1,638.2
38
%
163.3
47
%
10.0
%
1,619.8
37
%
120.7
35
%
7.5
%
Other products and services
204.7
5
%
20.1
5
%
9.8
%
240.7
5
%
36.5
11
%
15.2
%
$
4,320.7
100
%
$
350.7
100
%
8.1
%
$
4,442.3
100
%
$
340.2
100
%
7.7
%
Fourth Quarter 2023 Business Segment Performance
Fresh and Value-Added
Products
Net sales for the fourth quarter of 2023 increased by
$5.9 million, or 1%, when compared with the prior-year period
primarily driven by higher per unit selling price and sales volume
of pineapple driven by increased demand of the specialty
pineapples, Honeyglow® and Pinkglow®, and higher per unit selling
prices of avocados and non-tropical fruit, partially offset by
lower net sales of vegetables and prepared foods due to lower per
unit selling prices.
Gross profit for the fourth quarter of 2023 was $22.0
million compared with $34.1 million in the prior-year period. The
impact to gross profit was primarily driven by lower vegetable net
sales, higher per unit production, distribution, and ocean freight
costs, driven by the negative impact of fluctuations in exchange
rates, principally versus a stronger Costa Rica colon, partially
offset by higher net sales. As result of these factors, gross
margin decreased to 3.8% from 5.9%. Gross profit for the fresh and
value-added segment included $6.3 million of other-product related
credits primarily related to insurance and inventory recoveries
from the flooding of a seasonal production facility in Greece,
partially offset by an inventory write-off of $0.6 million due to
shipment rerouting from the conflict in the Red Sea.
Banana
Net sales for the fourth quarter of 2023 was $379.6
million compared with $403.8 million in the prior-year period
primarily driven by lower sales volume and per unit selling prices
in North America, partially offset by a stronger fourth quarter
European market.
Gross profit for the fourth quarter of 2023 slightly
decreased to $37.6 million from $38.1 million in the prior-year
period primarily driven by lower net sales and higher per unit
production costs, offset by lower distribution costs. As a result
of this, gross margin increased to 9.9% from 9.4% in the prior-year
period.
Other products and
services
Net sales for the fourth quarter of 2023 was $46.2
million compared with $59.3 million in the prior-year period mainly
due to lower net sales of third-party ocean freight services driven
by softened global demand.
Gross profit for the fourth quarter of 2023 was $2.9
million compared with $9.5 million in the prior-year period
primarily due to lower net sales.
Full Fiscal Year 2023 Business Segment Performance and
Selected Financial Data (continued) (As reported in business
segment data)
Fresh and Value-Added
Products
Net sales for full fiscal year 2023 were $2,477.8 million
compared with $2,581.8 million in the prior-year period. The
decrease in net sales was driven by lower sales volume across most
product categories, excluding pineapples and avocados which had
higher volumes, lower avocado pricing due to prior-year pricing
volatility, and the negative impact of fluctuations in exchange
rates mainly versus the Japanese yen, partially offset by higher
per unit selling prices across most other product categories.
Gross profit for full fiscal year 2023 was $167.3 million
compared with $183.0 million in the prior-year period. Gross profit
was negatively impacted by lower net sales and the negative
fluctuations of exchange rates versus the Costa Rican colon and
Mexican peso, partially offset by lower distribution, fuel, and
ocean and inland freight costs. Gross margin slightly decreased to
6.8% in 2023 from 7.1% in 2022.
Banana
Net sales for full fiscal year 2023 were $1,638.2 million
compared with $1,619.8 million in the prior-year period. The
increase in net sales was driven by higher per unit selling prices
in Europe partially offset by lower volumes and the negative impact
of exchange rate fluctuations mainly versus the Japanese yen,
Korean won, and euro.
Gross profit for full fiscal year 2023 increased 35.3% to
$163.3 million compared with $120.7 million in the prior-year
period. The increase in gross profit was driven by higher net
sales, specifically by higher per unit selling prices in Europe and
lower distribution costs, including ocean and inland freight.
Partially offsetting the increase in gross profit was higher per
unit production cost mainly due to negative fluctuation in
exchanges rates in Costa Rica. Gross margin increased to 10.0% in
2023 from 7.5% in 2022.
Other products and
services
Net sales for full fiscal year 2023 were $204.7 million
compared with $240.7 million in 2022 mainly due to lower net sales
of third-party ocean freight services as a result of lower rates
and volumes driven by softened global demand.
Gross profit for full fiscal year 2023 was $20.1 million
compared with $36.5 million in 2022 mainly due to lower net sales.
As a result, gross margin decreased to 9.8% from 15.2% in the
prior-year period.
Cash Flows
Net cash provided by operating activities for full fiscal year
2023 was $177.9 million. The increase in net cash provided by
operating activities was principally attributable to working
capital fluctuations, primarily a reduction in inventories as
compared to prior year, largely driven by lower levels of purchases
of key raw materials and packaging supplies as compared to prior
year due to efforts to secure costs and availability during that
period.
Long Term Debt
Long term debt as of the end of 2023 decreased to $400.0 million
from $539.8 million as of the prior-year end.
Quarterly Cash Dividend
The Company's Board of Directors declared on February 23, 2024,
an increase to the quarterly cash dividend to $0.25 per share,
payable on March 29, 2024, to shareholders of record on March 7,
2024.
Fresh Del Monte Produce Inc.
and Subsidiaries
Consolidated Statements of
Operations
(U.S. dollars in millions,
except share and per share data) - (Unaudited)
Quarter ended
Year ended
Statement of Operations:
December 29, 2023
December 30, 2022
December 29, 2023
December 30, 2022
Net sales
$
1,008.6
$
1,040.0
$
4,320.7
$
4,442.3
Cost of products sold
952.4
958.3
3,966.2
4,102.1
Other product-related (credits)
charges
(6.3
)
—
3.8
—
Gross profit
62.5
81.7
350.7
340.2
Selling, general and administrative
expenses
44.2
47.5
186.7
186.8
Gain (loss) on disposal of property, plant
and equipment, net
2.1
0.3
37.9
(1.9
)
Asset impairment and other charges
(credits), net
133.8
3.3
143.4
(4.8
)
Operating income (loss)
(113.4
)
31.2
58.5
156.3
Interest expense
3.7
7.2
24.1
24.4
Interest income
0.3
0.6
1.4
0.7
Other (income) expense, net
(3.5
)
(0.9
)
19.3
14.8
Income (loss) before income taxes
(113.3
)
25.5
16.5
117.8
Income tax (benefit) provision
(6.8
)
6.1
18.1
20.1
Net (loss) income
$
(106.5
)
$
19.4
$
(1.6
)
$
97.7
Less: Net (loss) income attributable to
redeemable and noncontrolling interests
(0.1
)
1.1
9.8
(0.9
)
Net (loss) income attributable to Fresh
Del Monte Produce Inc.
$
(106.4
)
$
18.3
$
(11.4
)
$
98.6
Earnings per share(1):
Basic
$
(2.22
)
$
0.38
$
(0.24
)
$
2.06
Diluted
$
(2.22
)
$
0.38
$
(0.24
)
$
2.06
Dividends declared per ordinary share
$
0.20
$
0.15
$
0.75
$
0.60
Weighted average number of ordinary
shares:
Basic
47,868,948
47,837,743
47,979,143
47,790,920
Diluted
47,868,948
48,046,374
47,979,143
47,943,464
(1) Earnings per share ("EPS") is
calculated based on Net (loss) income attributable to Fresh Del
Monte Produce Inc.
Fresh Del Monte Produce Inc.
and Subsidiaries
Consolidated Balance
Sheets
(U.S. dollars in millions) -
(Unaudited)
December 29, 2023
December 30, 2022
Assets
Current assets:
Cash and cash equivalents
$
33.8
$
17.2
Trade accounts receivable, net
387.0
373.5
Other accounts receivable, net
95.1
91.0
Inventories, net
599.9
669.0
Assets held for sale
4.5
67.3
Prepaid expenses and other current
assets
24.0
23.4
Total current assets
1,144.3
1,241.4
Investment in and advances to
unconsolidated companies
22.2
18.0
Property, plant and equipment, net
1,256.4
1,309.5
Operating lease right-of-use assets
213.8
213.8
Goodwill
401.9
422.9
Intangible assets, net
33.3
135.0
Deferred income taxes
51.5
47.4
Other noncurrent assets
60.7
70.9
Total assets
$
3,184.1
$
3,458.9
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and accrued expenses
$
479.0
$
549.9
Current maturities of debt and finance
leases
1.4
1.3
Current maturities of operating leases
48.6
41.6
Income taxes and other taxes payable
11.6
14.2
Total current liabilities
540.6
607.0
Long-term debt and finance leases
406.1
547.1
Operating leases, less current
maturities
142.1
147.3
Retirement benefits
82.3
82.4
Other noncurrent liabilities
27.6
28.5
Deferred income taxes
72.7
71.6
Total liabilities
1,271.4
1,483.9
Commitments and contingencies
Redeemable noncontrolling interest
—
49.4
Shareholders' equity:
Preferred shares
—
—
Ordinary shares
0.5
0.5
Paid-in capital
597.7
548.1
Retained earnings
1,341.4
1,397.6
Accumulated other comprehensive loss
(43.3
)
(41.5
)
Total Fresh Del Monte Produce Inc.
shareholders' equity
1,896.3
1,904.7
Noncontrolling interests
16.4
20.9
Total shareholders' equity
1,912.7
1,925.6
Total liabilities, redeemable
noncontrolling interest and shareholders' equity
$
3,184.1
$
3,458.9
Fresh Del Monte Produce Inc.
and Subsidiaries
Consolidated Statements of
Cash Flows
(U.S. dollars in millions) -
(Unaudited)
Year ended
December 29, 2023
December 30, 2022
Operating activities:
Net (loss) income
$
(1.6
)
$
97.7
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
84.8
92.5
Amortization of debt issuance costs
0.5
0.6
Share-based compensation expense
9.9
6.9
Asset impairments
141.3
3.5
Change in uncertain tax positions
1.5
1.7
(Gain) loss on disposal of property, plant
and equipment, net
(37.9
)
1.9
Deferred income taxes
(3.8
)
2.5
Adjustment of Kunia Well Site
liability
—
(9.9
)
Gain on release of cumulative translation
adjustment
(2.4
)
—
Other, net
(1.3
)
1.6
Changes in operating assets and
liabilities:
Receivables
(19.3
)
(37.4
)
Inventories
64.7
(72.1
)
Prepaid expenses and other current
assets
1.7
(0.2
)
Accounts payable and accrued expenses
(64.1
)
(17.8
)
Other noncurrent assets and
liabilities
3.9
(9.7
)
Net cash provided by operating
activities
177.9
61.8
Investing activities:
Capital expenditures
(57.7
)
(48.1
)
Investments in unconsolidated
companies
(5.3
)
(9.7
)
Proceeds from sales of property, plant and
equipment and subsidiary
119.9
8.7
Cash paid from derivatives not designated
as hedges
—
(0.2
)
Other investing activities
(0.5
)
0.2
Net cash provided by (used in)
investing activities
56.4
(49.1
)
Financing activities:
Proceeds from debt
590.5
1,066.3
Payments on debt
(730.3
)
(1,045.6
)
Distributions to noncontrolling
interests
(17.9
)
(0.9
)
Purchase of redeemable noncontrolling
interest
(5.2
)
—
Share-based awards settled in cash for
taxes
(0.8
)
(1.6
)
Dividends paid
(35.9
)
(28.7
)
Repurchase and retirement of ordinary
shares
(11.8
)
—
Other financing activities
(2.1
)
(1.5
)
Net cash used in financing
activities
(213.5
)
(12.0
)
Effect of exchange rate changes on
cash
(4.2
)
0.4
Net increase in cash and cash
equivalents
16.6
1.1
Cash and cash equivalents, beginning
17.2
16.1
Cash and cash equivalents, ending
$
33.8
$
17.2
Non-GAAP Measures
The Company's results are determined in accordance with U.S.
generally accepted accounting principles (GAAP). Certain
information presented in this press release reflects adjustments to
GAAP measures such as amounts related to asset impairment and other
charges (credits), net, gain on disposal of property, plant and
equipment, net, subsidiary, and other product-related charges.
These adjustments result in non-GAAP financial measures and are
referred to in this press release as Adjusted gross profit,
Adjusted gross margin, Adjusted operating income, Adjusted FDP net
income (loss), and Adjusted diluted EPS. Management believes these
adjustments provide a more comparable analysis of the underlying
operating performance of the business.
This press release also includes non-GAAP measures such as
EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin.
EBITDA is defined as net income (loss) attributable to Fresh Del
Monte Produce Inc. excluding interest expense, interest income,
provision (benefit) for income taxes, depreciation and
amortization, and share-based compensation expense. Adjusted EBITDA
represents EBITDA with additional adjustments for non-recurring
items, including asset impairment and other charges (credits), net,
gain on disposal of property, subsidiary and other product-related
charges. EBITDA margin represents EBITDA as a percentage of net
sales, and Adjusted EBITDA margin represents Adjusted EBITDA as a
percentage of net sales.
Adjusted gross profit, Adjusted operating income, Adjusted FDP
net income (loss), and Adjusted EBITDA provide the Company with an
understanding of the results from the primary operations of its
business. The Company uses these metrics because management
believes they provide more comparable measures to evaluate
period-over-period operating performance since they exclude special
items that are not indicative of the Company's core business or
operations. These measures may be useful to an investor in
evaluating the underlying operating performance of the Company's
business because these measures:
- Are used by investors to measure a company's comparable
operating performance;
- Are financial measurements that are used by lenders and other
parties to evaluate creditworthiness; and
- Are used by the Company's management for various purposes,
including as measures of performance of its operating entities, as
a basis of strategic planning and forecasting, and in certain cases
as a basis for incentive compensation.
Because all companies do not use identical calculations, the
Company's presentation of these non-GAAP financial measures may not
be comparable to similarly titled measures used by other companies.
Reconciliations of non-GAAP financial measures to the most directly
comparable GAAP financial measures are provided in the financial
tables that accompany this release.
Fresh Del Monte Produce Inc.
and Subsidiaries
Non-GAAP
Reconciliation
(U.S. dollars in millions,
except per-share amounts) - (Unaudited)
Quarter ended
December 29, 2023
December 30, 2022
Gross profit
Operating (loss) income
Net (loss) income attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net (loss) income attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
As reported
$
62.5
$
(113.4
)
$
(106.4
)
$
(2.22
)
$
81.7
$
31.2
$
18.3
$
0.38
Adjustments:
Other product-related (credits) charges
(1)
(6.3
)
(6.3
)
(6.3
)
(0.13
)
—
—
—
—
Asset impairment and other charges
(credits), net (2)
—
133.8
133.8
2.79
—
3.3
3.3
0.07
(Gain) on disposal of property, plant and
equipment, net (3)
—
(2.1
)
(2.1
)
(0.04
)
—
(0.3
)
(0.3
)
—
Other adjustments (4)
—
—
—
—
—
—
0.2
—
Tax effects of all adjustments and other
tax-related items (5)
—
—
(7.2
)
(0.15
)
—
—
—
—
As adjusted
$
56.2
$
12.0
$
11.8
$
0.25
$
81.7
$
34.2
$
21.5
$
0.45
Year ended
December 29, 2023
December 30, 2022
Gross profit
Operating income
Net (loss) income attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net (loss) income attributable to
Fresh Del Monte Produce Inc.
Diluted EPS
As reported
$
350.7
$
58.5
$
(11.4
)
$
(0.24
)
$
340.2
$
156.3
$
98.6
$
2.06
Adjustments:
Other product-related (credits) charges
(1)
3.8
3.8
3.8
0.08
—
—
—
—
Asset impairment and other charges
(credits), net (2)
—
143.4
143.4
2.99
—
(4.8
)
(4.8
)
(0.10
)
(Gain) on disposal of property, plant and
equipment, net (3)
—
(40.4
)
(40.4
)
(0.84
)
—
(2.3
)
(2.3
)
(0.05
)
Other adjustments (4)
—
—
7.6
0.16
—
—
0.2
—
Tax effects of all adjustments and other
tax-related items (5)
—
—
(1.3
)
(0.03
)
—
—
2.6
0.06
As adjusted
$
354.5
$
165.3
$
101.7
$
2.12
$
340.2
$
149.2
$
94.3
$
1.97
Fresh Del Monte Produce Inc.
and Subsidiaries
Segment Gross Profit Non-GAAP
Reconciliation
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
December 29, 2023
December 30, 2022
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and services
Gross profit (as reported)
$
22.0
$
37.6
$
2.9
$
34.1
$
38.1
$
9.5
Adjustments:
Other product-related (credits) charges
(1)
(6.3
)
—
—
—
—
—
Adjusted gross profit
$
15.7
$
37.6
$
2.9
$
34.1
$
38.1
$
9.5
Net Sales
$
582.8
$
379.6
$
46.2
$
576.9
$
403.8
$
59.3
Gross margin(a)
3.8
%
9.9
%
6.3
%
5.9
%
9.4
%
16.0
%
Adjusted gross margin(b)
2.7
%
9.9
%
6.3
%
5.9
%
9.4
%
16.0
%
Year ended
December 29, 2023
December 30, 2022
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and
services
Gross profit (as reported)
$
167.3
$
163.3
$
20.1
$
183.0
$
120.7
$
36.5
Adjustments:
Other product-related charges (1)
3.7
0.1
—
—
—
—
Adjusted gross profit
$
171.0
$
163.4
$
20.1
$
183.0
$
120.7
$
36.5
Net Sales
$
2,477.8
$
1,638.2
$
204.7
$
2,581.8
$
1,619.8
$
240.7
Gross margin(a)
6.8
%
10.0
%
9.8
%
7.1
%
7.5
%
15.2
%
Adjusted gross margin(b)
6.9
%
10.0
%
9.8
%
7.1
%
7.5
%
15.2
%
(a) Calculated as Gross profit as a
percentage of net sales.
(b) Calculated as Adjusted gross profit as
a percentage of net sales.
Fresh Del Monte Produce Inc.
and Subsidiaries
Reconciliation of EBITDA and
Adjusted EBITDA
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
Year ended
December 29, 2023
December 30, 2022
December 29, 2023
December 30, 2022
Net (loss) income attributable to Fresh
Del Monte Produce Inc.
$
(106.4
)
$
18.3
$
(11.4
)
$
98.6
Interest expense, net
3.4
6.6
22.7
23.7
Income tax (benefit) provision
(6.8
)
6.1
18.1
20.1
Depreciation & amortization
19.9
22.3
84.8
92.5
Share-based compensation expense
2.3
2.0
9.9
6.9
EBITDA
$
(87.6
)
$
55.3
$
124.1
$
241.8
Adjustments:
Other product-related (credits) charges
(1)
(6.3
)
—
3.8
—
Asset impairment and other charges
(credits), net (2)
133.8
3.3
143.4
(4.8
)
(Gain) on disposal of property, plant and
equipment, net (3)
(2.1
)
(0.3
)
(40.4
)
(2.3
)
Other adjustments (4)
—
0.2
7.6
0.2
Adjusted EBITDA
$
37.8
$
58.5
$
238.5
$
234.9
Net sales
$
1,008.6
$
1,040.0
$
4,320.7
$
4,442.3
Net income margin(a)
(10.5
) %
1.8
%
(0.3
) %
2.2
%
(a) Calculated as Net (loss) income
attributable to Fresh Del Monte Produce Inc. as a percentage of net
sales.
EBITDA margin(b)
(8.7
) %
5.3
%
2.9
%
5.4
%
(b) Calculated as EBITDA as a percentage
of net sales.
Adjusted EBITDA margin(c)
3.7
%
5.6
%
5.5
%
5.3
%
(c) Calculated as Adjusted EBITDA as a
percentage of net sales.
(1)
Other product-related (credits) charges
for the quarter ended December 29, 2023, primarily consisted of
$(6.9) million of insurance recoveries and recovery of inventory
written-off due to severe flooding caused by heavy rainstorms in
Greece during the third quarter of 2023, partially offset by
inventory write-offs of $0.6 million as a result of reroutes of
shipments impacted by conflict in the Red Sea. Other
product-related (credits) charges for the year ended December 29,
2023, also included inventory write-off and clean-up costs of $8.4
million due to Greece flooding and $1.8 million of inventory
write-offs primarily related to the sale of two distribution
centers in Saudi Arabia.
(2)
Asset impairment and other charges
(credits), net for the quarter ended December 29, 2023, primarily
consisted of impairment charges of $109.6 million related to
customer list and trade name intangible assets and building, land,
and land improvements assets in North America, a $21.6 million
impairment charge related to goodwill in our prepared foods
reporting unit and $2.6 million of impairment charges related to
low-yielding non-tropical fruit farms in Chile. Asset impairment
and other charges (credits), net for the year ended December 29,
2023, also consisted of $3.7 million of impairment charges related
to low-yielding banana farms in the Philippines, $1.8 million of
impairment charges due to low productivity grape vines in South
America, $1.3 million of expenses, net of insurance reimbursements,
incurred in connection with a cybersecurity incident which occurred
during early 2023 and $1.1 million of impairment charges related to
idle land in South America. The cybersecurity incident temporarily
impacted certain of the Company's operational and information
technology systems and resulted in incremental costs primarily
related to the engagement of specialized legal counsel and other
incident response advisors. The Company's critical operational data
and business systems were promptly recovered and accordingly, the
incident did not have a material impact on the Company's financial
results for the year ended December 29, 2023. Asset impairment and
other charges (credits), net for the quarter ended December 30,
2022, primarily related to a $2.7 million impairment of
banana-related fixed assets in the Philippines due to flooding as a
result of heavy rainfall. Asset impairment and other charges
(credits), net for the year ended December 30, 2022, also included
a $(9.9) million adjustment to the Company's environmental
liability related to the Kunia Well Site partially offset by
severance expenses in connection with the departure of the
Company's former President and Chief Operating Officer.
(3)
Gain on disposal of property, plant and
equipment, net for the quarter ended December 29, 2023, mainly
related to the sale of a carrier vessel. For the year ended
December 29, 2023, gain on disposal of property, plant and
equipment, net also included a $20.5 million gain on the sale of
two distribution centers and related assets in Saudi Arabia, a $7.0
million gain on the sale of an idle facility in North America, a
$3.8 million gain on the sale of the Company's plastics business
subsidiary in South America, a $2.4 million gain on the sale of an
additional carrier vessel and gains on the sales of land assets in
South and Central America. Gain on disposal of property, plant and
equipment, net for the quarter ended December 30, 2022, mainly
related to the sale of vehicles in the Middle East. For the year
ended December 30, 2022, gain on disposal of property, plant and
equipment, net also included a $1.4 million gain on the sale of
vacant land in Mexico.
(4)
Other adjustments for the quarters and
years ended December 29, 2023 and December 30, 2022, primarily
related to portions of the gain on disposal of property, plant, and
equipment, net which were attributable to a minority interest
partner, reflected in net (loss) income attributable to redeemable
and noncontrolling interests.
(5)
Tax effects are calculated in accordance
with ASC 740, Income Taxes, using the same methodology as the GAAP
provision of income taxes. Income tax effects of non-GAAP
adjustments are calculated based on the applicable statutory tax
rate for each jurisdiction in which such adjustments were incurred,
except for those items which are non-taxable for which the tax
provision was calculated at 0%. Certain non-GAAP adjustments were
subject to valuation allowances and therefore were calculated at
0%.
Conference Call and Webcast Data
Fresh Del Monte will host a conference call and simultaneous
webcast at 10:00 a.m. Eastern Time today to discuss the fourth
quarter and full fiscal year 2023 financial results and to review
the Company’s progress and outlook. The webcast can be accessed on
the Company’s Investor Relations home page at
https://investorrelations.freshdelmonte.com. The call will be
available for re-broadcast on the Company’s website approximately
two hours after the conclusion of the call for a period of one
year.
About Fresh Del Monte Produce Inc.
Fresh Del Monte Produce Inc. is one of the world's leading
vertically integrated producers, marketers and distributors of
high-quality fresh and fresh-cut fruit and vegetables, as well as a
leading producer and distributor of prepared food in Europe, Africa
and the Middle East. Fresh Del Monte markets its products worldwide
under the Del Monte® brand (under license from Del Monte Foods,
Inc.), a symbol of product innovation, quality, freshness and
reliability for over 135 years. The Company also markets its
products under the Mann™ brand and other related trademarks. Fresh
Del Monte Produce Inc. is not affiliated with certain other Del
Monte companies around the world, including Del Monte Foods, Inc.,
the U.S. subsidiary of Del Monte Pacific Limited, Del Monte Canada,
or Del Monte Asia Pte. Ltd. Fresh Del Monte is the first global
marketer of fruits and vegetables to commit to the “Science Based
Targets” initiative. In 2023, for the second consecutive year,
Fresh Del Monte Produce was ranked as one of "America's Most
Trusted Companies" by Newsweek based on an independent survey
rating companies on three different touchpoints, including customer
trust, investor trust, and employee trust. Fresh Del Monte Produce
is traded on the NYSE under the symbol FDP.
Forward-looking Information
This press release and the related earnings call contain certain
forward-looking statements within the meaning of the federal
securities laws, including Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, that reflect the intent, beliefs or current
expectations of the Company. These statements include statements
that are preceded by, followed by or include the words “believes”,
“expects”, “anticipates”, “may,” “will,” “outlook,” “plan” or
similar expressions with respect to various matters. Specifically,
this press release and the earnings call contain forward-looking
statements regarding the Company’s plans and expectations for
future performance, including the Company’s (a) intent to focus on
continuous innovation, commercializing its assets through strategic
partnerships, investing in organic growth, increasing the mix of
high margin products and working toward a circular economy; (b)
ability to return value to its shareholders; (c) ability to control
costs in 2024; (d) plans to expand its pineapple program and
expected benefits of expansion; (e) expected growth opportunities,
including biofertilizers; (f) expectations for 2024 regarding
capital expenditures, product margins, volumes and sales prices in
its banana segment, and ocean freight costs; and (g) free cash flow
projections. It is important to note that these forward-looking
statements are not guarantees of future performance and involve
risks and uncertainties. The Company’s actual plans and performance
may differ materially from those in the forward-looking statements
as a result of various factors, including (i) ongoing elevated
commodity and supply chain costs, including costs of raw materials,
packaging materials, labor, energy, fuel and transportation, (ii)
the Company’s ability to successfully execute on its strategic
growth plans, including the use of AI and other technology to
effectively manage costs and pricing, (iii) the impact of foreign
currency fluctuations, including the effectiveness of our hedging
activities, (iv) the impact of asset impairment or other charges,
including those associated with exit activities, crop or facility
damage or otherwise, (v) the impact of ongoing conflict in the
Middle East on supply chain logistics and other disruptions in the
Company's supply chain, (vi) trends and other factors affecting
consumer preferences or consumer, (vii) factors outside the
Company’s control that impact its and other growers’ crop quality
and yields, such as crop disease, severe weather conditions,
disruptions or issues that impact its production facilities or
complex logistics network, and the availability of sufficient labor
during peak growing and harvesting seasons, (viii) competitive
pressures and the Company’s ability to realize the full benefits of
the inflation driven price increases implemented, (ix) the timing
and cost of resolving any product liability claims, regulatory and
legal actions, product recalls, or other legal or environmental
proceedings or investigations relating to our business, (x) the
impact of claims and adjustments proposed by the IRS or other
foreign taxing authorities in connection with our current or future
tax audits and our ability to successfully contest such tax claims
and pursue necessary remedies, (xi) the cost and other implications
of changes in regulations applicable to our business, including
potential legislative or regulatory initiatives in the United
States or elsewhere directed at mitigating the effects of climate
change, (xii) damage to our reputation or brand names or negative
publicity about our products, and (xiii) the Company’s ability to
successfully manage the risks associated with international
operations. In addition, these forward-looking statements and the
information in this press release and the earnings call are
qualified in their entirety by cautionary statements and risk
factor disclosures contained in the Company’s Securities and
Exchange Commission filings, including the Company’s most recently
filed Annual Report on Form 10-K. All forward-looking statements in
this press release are based on information available to us on the
date hereof, and we assume no obligation to update such
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240226820690/en/
Monica Vicente Senior Vice President, Chief Financial
Officer 305-520-8433
Fresh Del Monte Produce (NYSE:FDP)
過去 株価チャート
から 4 2024 まで 5 2024
Fresh Del Monte Produce (NYSE:FDP)
過去 株価チャート
から 5 2023 まで 5 2024