Agreement to Divest Mann Packing to Enhance Margin Profile
Strategic Focus Drives Gross Margin Expansion in Fresh and Value-added Products Segment
Exit of Underperforming Banana Farms Supports Long-Term Productivity and Operational Resilience
CORAL GABLES, Fla.--(BUSINESS WIRE)--October 29, 2025--
Fresh Del Monte Produce Inc. $(FDP)$, ("Fresh Del Monte" or the "Company") today reported financial results for the third quarter ended September 26, 2025.
"We delivered another quarter of strategic progress, with overall net sales slightly higher and gross margin expanding in our fresh and value-added products segment. These results reflect the strength of our execution and our disciplined focus on higher-margin, value-added categories that continue to drive profitable growth," said Mohammad Abu-Ghazaleh, Fresh Del Monte's Chairman and CEO. "At the same time, we took decisive actions to optimize our portfolio and drive long-term profitability by exiting underperforming banana operations in the Philippines and divesting Mann Packing. These strategic moves simplify our operations, sharpen our focus on higher-margin, higher-growth categories, and position us to deliver stronger earnings and sustained value for our shareholders."
Financial highlights for the third quarter 2025:
The Company entered into an agreement to divest its Mann Packing Inc. business operations ("Mann Packing"), with the transaction expected to close in the fourth quarter of 2025, subject to customary closing conditions.
Net sales for the third quarter of 2025 were $1,021.9 million. The increase reflects higher net sales in the Company's banana and other products and services business segments, primarily driven by higher per-unit selling prices in the Company's banana segment. Contributing factors included the impact of tariff-related price adjustments in North America and the favorable impact of fluctuations in exchange rates related to the Euro. The increase was partially offset by lower sales volume in the fresh-cut vegetable product line due to strategic operational reductions taken during the fourth quarter of 2024, including the sale of certain assets of Fresh Leaf Farms.
On an Adjusted basis, net sales(1) excluding the impact of the planned divestiture of Mann Packing were $959.5 million.
Gross profit for the third quarter of 2025 was $80.8 million. The decrease was primarily driven by higher per-unit production and procurement costs in the banana segment, along with increased distribution costs. Gross margin decreased to 7.9%.
Adjusted gross profit(1) for the third quarter of 2025 was $88.1 million. Adjusted gross profit primarily excludes the operating results of Mann Packing, which the Company plans to divest in the fourth quarter of 2025. Adjusted gross margin decreased to 9.2%.
Operating loss for the third quarter of 2025 was $21.8 million. The decrease was primarily driven by higher asset impairment and other charges, net, related to underperforming banana farms in the Philippines and the impairment charges associated with the planned divestiture of Mann Packing, and lower gross profit in the current period.
Adjusted operating income(1) for the third quarter of 2025 was $39.7 million. Adjusted operating income primarily excludes the operating losses associated with the Company's Mann Packing business, as well as the above-mentioned impairments and gains on the disposal of property, plant, and equipment.
FDP net loss(2) for the third quarter of 2025 was $29.1 million. Adjusted FDP net income(1) was $33.1 million. Adjusted FDP net income excludes the above-mentioned adjustments, and the tax effects of non-GAAP adjustments.
Third Quarter 2025 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) - (Unaudited)
Quarter ended
September 26, 2025 September 27, 2024
---------------------------------------------- ----------------------------------------------
Segment Gross Gross
Data: Net Sales Gross Profit Margin Net Sales Gross Profit Margin
----------------- --------------- ---------- ----------------- --------------- ----------
Fresh and
value-added
products $ 610.5 60% $ 68.3 84% 11.2% $ 623.7 61% $ 63.3 67% 10.1%
Banana 358.0 35% 4.6 6% 1.3% 345.3 34% 21.3 23% 6.2%
Other
products
and
services 53.4 5% 7.9 10% 14.8% 50.5 5% 9.2 10% 18.2%
------- --- ----- --- ------- --- ----- ---
$1,021.9 100% $ 80.8 100% 7.9% $1,019.5 100% $ 93.8 100% 9.2%
======= === ===== === ======= === ===== ===
Nine months ended
September 26, 2025 September 27, 2024
---------------------------------------------- ----------------------------------------------
Gross Gross
Net Sales Gross Profit Margin Net Sales Gross Profit Margin
----------------- --------------- ---------- ----------------- --------------- ----------
Fresh and
value-added
products $2,016.2 61% $222.4 76% 11.0% $1,994.6 61% $197.2 68% 9.9%
Banana 1,131.7 34% 51.4 18% 4.5% 1,119.1 34% 72.8 25% 6.5%
Other
products
and
services 154.9 5% 19.3 6% 12.5% 153.3 5% 19.2 7% 12.5%
------- --- ----- --- ------- --- ----- ---
$3,302.8 100% $293.1 100% 8.9% $3,267.0 100% $289.2 100% 8.9%
======= === ===== === ======= === ===== ===
(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" as referenced throughout this release is defined as
Net (loss) income attributable to Fresh Del Monte Produce Inc.
Third Quarter 2025 Business Segment Performance
Fresh and Value-Added Products
As previously announced, the Company entered into an agreement to divest Mann Packing, a component of its fresh and value-added products business segment.
Net sales for the third quarter of 2025 were $610.5 million. The decrease was primarily a result of lower per-unit selling prices in the Company's avocado product line, driven by increased industry supply, and lower net sales in its fresh-cut vegetable product line, resulting from strategic operational reductions implemented during the fourth quarter of 2024, including the sale of certain assets of Fresh Leaf Farms. The decrease was partially offset by higher sales volume and per-unit selling prices in the Company's fresh-cut fruit product line, increased per-unit selling prices in its pineapple product line, and tariff-related price adjustments in North America.
On an Adjusted basis, net sales(1) excluding the impact of the planned divestiture of Mann Packing were $548.1 million.
Gross profit for the third quarter of 2025 was $68.3 million. The increase was primarily driven by higher per-unit selling prices in the pineapple and fresh-cut fruit product lines, partially offset by lower net sales. Gross margin increased to 11.2%.
Adjusted gross profit(1) for the third quarter of 2025 was $76.0 million. Adjusted gross profit primarily excludes the operating results of Mann Packing, which the Company plans to divest in the fourth quarter of 2025. Adjusted gross margin increased to 13.9%.
Banana
Net sales for the third quarter of 2025 were $358.0 million. The increase was primarily driven by higher per-unit selling prices across all of the Company's regions, including the favorable impact of fluctuations in exchange rates, primarily related to the Euro, and tariff-related price adjustments in North America. Additionally, sales volume increased in the Middle East, reflecting a recovery from the prior-year shipment disruptions caused by the Red Sea conflict. The increase in net sales was partially offset by lower sales volume in Asia and North America due to weak market demand.
Gross profit for the third quarter of 2025 was $4.6 million. The decrease was primarily driven by higher per-unit production and procurement costs due to adverse weather conditions in the Company's growing regions during the first half of 2025, increased distribution costs, and an allowance recorded on a receivable from an independent grower in Asia. Gross margin decreased to 1.3%.
Adjusted gross profit(1) for the third quarter of 2025 was $4.2 million. Adjusted gross profit excludes other product-related charges and credits. Adjusted gross margin decreased to 1.2%.
Other Products and Services
Net sales for the third quarter of 2025 were $53.4 million. The increase was primarily a result of higher net sales in the Company's third-party freight services business, partially offset by lower per-unit selling prices in the Company's poultry and meats business.
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