Fresh Del Monte Produce | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 1.022 B

Revenue: As of FY2025 Q3, the actual value is USD 1.022 B, missing the estimate of USD 1.041 B.

EPS: As of FY2025 Q3, the actual value is USD -0.61, missing the estimate of USD 0.5.

EBIT: As of FY2025 Q3, the actual value is USD -20 M.

Segment Revenue

• Fresh and Value-Added Products: Net sales for the third quarter of 2025 were $610.5 million, impacted by lower per-unit selling prices in the avocado product line and lower net sales in the fresh-cut vegetable product line, offset by higher sales volume and per-unit selling prices in the fresh-cut fruit and pineapple product lines.
• Banana: Net sales for the third quarter of 2025 were $358.0 million, driven by higher per-unit selling prices across all regions and increased sales volume in the Middle East, partially offset by lower sales volume in Asia and North America.
• Other Products and Services: Net sales for the third quarter of 2025 were $53.4 million, with an increase primarily due to higher net sales in the third-party freight services business.

Operational Metrics

• Gross Profit: The gross profit for the third quarter of 2025 was $80.8 million, with a gross margin of 7.9%. Adjusted gross profit was $88.1 million, with an adjusted gross margin of 9.2%.
• Operating Loss: The operating loss for the third quarter of 2025 was - $21.8 million, primarily due to higher asset impairment and other charges related to underperforming banana farms and the planned divestiture of Mann Packing.
• Net Loss: FDP net loss for the third quarter of 2025 was - $29.1 million. Adjusted FDP net income was $33.1 million.

Cash Flow

• Net Cash Provided by Operating Activities: For the first nine months of 2025, net cash provided by operating activities was $234.2 million, primarily due to working capital fluctuations.

Unique Metrics

• Long-Term Debt: Long-term debt decreased to $173.0 million at the end of the third quarter of 2025.
• Share Repurchase Program: During the third quarter of 2025, the company repurchased 201,514 shares of common stock for $7.2 million.

Outlook / Guidance

Fresh Del Monte Produce Inc. plans to divest Mann Packing to enhance its margin profile and focus on high-margin, value-added products. The company expects to streamline operations, improve profitability, and expand its product offerings, particularly in high-margin categories like pineapples and avocados. The financial outlook for the remainder of 2025 and 2026 includes expectations for segment results, cost management, and strategic initiatives to improve gross margin.