Fresh Del Monte Produce Inc. today reported financial results for the first quarter ended March 31, 2023.
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“Our first quarter results of 2023 are a testament to our focus on profitability as we continue to commit to efficiency and optimization of resources. Our gross profit and margin were strong, which reflects our ongoing strategic efforts to further increase our profitability,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer. “During the quarter, as part of our asset optimization plan, we finalized the sale of three underutilized properties. We are laser-focused on being flexible and agile and on identifying market opportunities that will increase shareholder value.”
Net sales for the first quarter of 2023 decreased $8.4 million, or 1%, compared with the prior-year period. The decrease in net sales was impacted by lower per unit selling prices of avocados, lower volumes in the fresh and value-added products segment, and negative fluctuations in exchange rates, primarily in Europe and Asia. Partially offsetting the decrease in net sales were higher per unit selling prices across most other products and higher banana sales volume.
Gross profit for the first quarter of 2023 was $97.0 million compared with $89.8 million in the prior-year period driven by higher per unit selling prices across most product categories combined with lower distribution costs. Partially offsetting the increase in gross profit were higher production and procurement costs across most product categories as well as higher ocean freight costs.
Adjusted gross profit(3) for the first quarter of 2023 was $98.8 million. Adjusted gross profit excludes $1.8 million of other product-related charges primarily due to the sale of two distribution centers in the Middle East. There were no adjustments to gross profit in the first quarter of 2022.
Operating income for the first quarter of 2023 was $74.5 million compared with $39.8 million in the prior-year period, and Adjusted operating income(3) was $51.2 million compared with $40.4 million in the prior-year period. The increase in operating income was primarily due to the gain on sale of underutilized assets and higher gross profit. Adjusted operating income excludes $2.4 million of asset impairment and other charges, net related to a cybersecurity incident in early 2023, and $27.5 million gain on sale of which $20.5 million was related to the sale of two distribution centers in the Middle East and $6.8 million was related to the sale of an idle facility in North America. In the prior-year period, Adjusted operating income excludes asset impairment and other charges of $1.0 million and a gain on sale of $0.4 million.
For more information: 
Monica Vicente
Senior Vice President, Chief Financial Officer
Fresh Del Monte Produce Inc.
Tel.: +1 305-520-8433