Group reports on lower net sales but higher gross profit and net income in the opening quarter of the year
Fresh Del Monte Produce has released its results for the opening quarter (Q1) of 2025, reporting on higher gross profit despite lower sales.
Net sales for the three-month period stood at US$1.098bn, down from the US$1.107bn seen in the prior-year period.
The decrease was primarily driven by lower net sales in the company’s banana segment, it said, mainly as a result of lower sales volume and the negative impact of fluctuations in exchange rates.
This was partially offset by higher net sales in the Del Monte’s fresh and value-added products segment, driven by higher per unit selling prices.
Gross profit for the first quarter of 2025 was US$92.2mn compared with US$82.3mn in the prior-year period.
Del Monte said the increase in gross profit was primarily the result of higher net sales in its fresh and value-added products segment, partially offset by higher per unit production, procurement, and distribution costs.
Q1 operating income stood at US$44.9mn compared with US$44.1mn in the opening quarter of 2024, with adjusted operating income rising to US$44.1mn from US$30.6mn last year.
Net income attributable to Del Monte was US$31.1mn, growth from the US$26.1mn recorded in the prior-year period.
“We kicked off 2025 with continued momentum, building on the progress we made last year,” said Fresh Del Monte chairman and CEO Mohammad Abu-Ghazaleh.
”In the first quarter, demand once again exceeded supply in our fresh and value-added products segment, highlighting the strength of our position in this key segment.
“Our year-over-year improvement in gross profit – up 12 per cent – and continued expansion in gross margin, up to 8.4 per cent versus 7.4 per cent – reflects the success of our fresh and value-added products strategy, supported by disciplined execution, optimised product mix, and ongoing operational efficiencies,” he noted.
”As we look ahead, we remain committed to creating long-term value through innovation, sustainability, and operational excellence across our global business.”
