Sales and net income both fell during the opening quarter of the year when compared with 2023

Del Monte bananas

Net sales and net income took a fall in Fresh Del Monte’s opening set of results for 2024.

The fresh produce giant saw net income drop to US$1.08bn from US$1.13bn in the prior-year period, the result of lower banana net sales, driven by lower volume and pricing, and lower net sales in the other products and services segment.

This was partially offset by an increase in net sales in the fresh and value-added products segment, the group said.

Gross profit was US$82.3m compared with US$97m in the prior-year period, impacted by lower overall net sales, higher production and procurement costs, and the negative impact of fluctuations in exchange rates partially offset by lower ocean freight and distribution costs.

Del Monte’s net income for the first quarter was US$26.1m compared with US$39m in the first quarter of 2023, and adjusted net income dropped to US$15.8m from US$26.6m.

“We are pleased with the ongoing momentum in our higher-margin fresh and value-added segment,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s chairman and CEO. 

”During the first quarter of 2024, this prioritised area of our business delivered 5 per cent revenue growth driven by our strategic initiatives around distribution, pricing, and premiumisation,” he continued.

”While service level issues and competitive market pressures in North America and Europe reduced our banana revenue, we continued to generate very strong cash flow, which fuels our growth strategy tied to innovation around fresh-cut and pineapples.

“We further enhanced our pineapple programme with the release of two new products this quarter. Furthermore, our leadership team remains focused on operational excellence, cost discipline, and strategic capital allocation to further improve profitability across all areas of our business.

”With our diverse product portfolio, strong brand recognition, and unwavering commitment to innovation, we believe we are well-positioned to generate sustainable value for our shareholders,” Abu-Ghazaleh added.