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Fresh Del Monte Produce Inc. reports fourth quarter and full fiscal year 2023 financial results

Fresh Del Monte Produce increased quarterly dividend by 25% for second consecutive year

Fresh Del Monte Produce Inc. has 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.


For more information:
Bianca Hernandez
Fresh Del Monte Produce Inc.
241 Sevilla Avenue, 12th Floor
Coral Gables, FL 33134
Tel.: +1 305-520-8433

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