Gross Profit Margin for Fiscal Year 2023 Increased to 8.1% from 7.7% in Prior-Year
Banana Segment Gross Margin for Fiscal Year 2023 Up 250 Basis Points Compared with Prior-Year
Company Exploring Strategic Alternatives for Mann Packing Operation
Long-Term Debt Reduced by $140 Million or 26% to $400 million at End of Fiscal Year 2023
Company Increased Quarterly Dividend by 25% for Second Consecutive Year
CORAL GABLES, Fla.–(BUSINESS WIRE)–Fresh Del Monte Produce Inc. (NYSE: FDP), (“Fresh Del Monte” or the “Company”) today 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.
Adjusted gross profit(1) for the fourth quarter 2023 was $56.2 million compared with $81.7 million in the prior-year period. Adjusted gross profit for the fourth quarter excludes $(6.3) million of other product-related credits primarily related to $(6.9) million of insurance recoveries and recovery of inventory written-off due to severe flooding caused by heavy rainstorms in Greece during the third quarter of 2023, partially offset by inventory write-offs of $0.6 million as a result of reroutes of shipments impacted by conflict in the Red Sea. There were no other product-related charges in the fourth quarter 2022.
Operating loss for the fourth quarter of 2023 was $(113.4) million compared with operating income of $31.2 million in the prior-year period. Operating losses were driven by a $133.8 million non-cash asset impairment charge, primarily pertaining to long-lived assets in North America in the fresh and value-added product segment and goodwill in our prepared foods reporting unit.
Adjusted operating income(1) for the fourth quarter of 2023 was $12.0 million compared with $34.2 million in the prior-year period. Adjusted operating income excludes the above-mentioned $133.8 million non-cash asset impairment, a $(6.3) million other product-related credit, and a gain on asset sale of $2.1 million primarily related to the sale of a vessel. In the prior-year period, Adjusted operating income excluded a $3.3 million asset impairment principally due to banana-related fixed assets in the Philippines due to flooding from heavy rainfall and a gain on asset sale of $0.3 million related to the sale of vehicles in the Middle East.
FDP net loss(2) for the fourth quarter of 2023 was $(106.4) million compared with FDP net income of $18.3 million in the prior-year period and Adjusted FDP net income(1) was $11.8 million compared with $21.5 million in the prior-year period. Adjusted FDP net income for the fourth quarter of 2023 excludes the above-mentioned other product-related credit, asset impairment and other charges, and gain on sale of assets, net of tax effect. In the prior-year period, Adjusted FDP net income excludes asset impairment and other charges, gain on sale of assets, net of tax effect.
|
(1) |
Non-GAAP financial measure. Reconciliations and other information required by Regulation G can be found below under “Non-GAAP Measures.” |
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|
(2) |
“FDP net income/loss” as referenced throughout this release is defined as Net income/loss attributable to Fresh Del Monte Produce Inc. |
Financial highlights for the full fiscal year 2023:
For full fiscal year 2023, net sales was $4,320.7 million compared with $4,442.3 million in the prior-year period. Net sales were primarily impacted by lower sales volumes in all segments, partially offset by higher per unit selling prices for the banana and fresh and value-added products segments, despite a negative impact of exchange rate for the Japanese yen, Korean won, and British pound. The negative impact of fluctuations in exchange rates was partially mitigated by our foreign currency hedges.
For full fiscal year 2023, gross profit was $350.7 million compared with $340.2 million in the prior-year period. The increase to gross profit was primarily driven by higher per unit selling prices in the banana and fresh and value-added products coupled with lower distribution costs, partially offset by higher per unit production costs driven by the negative impact of a stronger Costa Rican colon.
Adjusted gross profit for full fiscal year 2023 was $354.5 million compared with $340.2 million in the prior-year period. Adjusted gross profit for full fiscal year 2023 excludes $3.8 million of other product-related charges primarily related to $1.5 million of inventory write-off due to the sale of two distribution centers in Saudi Arabia, $1.4 million of inventory write-off and clean-up cost, net of insurance recoveries, tied to the flooding of a seasonal production facility in Greece, and $0.6 million of inventory write-offs due to shipment rerouting impacted by the conflict in the Red Sea. There were no other product-related charges in 2022.
For the full fiscal year 2023, operating income was $58.5 million compared with $156.3 million in the prior-year period. The decrease was driven by a $143.4 million asset impairment and other charge pertaining to the asset impairment in the fourth quarter, partially offset by higher gross profit and $40.4 million gain on asset sales related to the sale of two distribution centers in Saudi Arabia, sale of an idle facility in North America, sale of the plastics business in South America, sale of two carrier vessels, and sale of land assets in South and Central America.
For the full fiscal year 2023, Adjusted operating income was $165.3 million compared with $149.2 million in the prior-year period which excludes the above-mentioned other product-related charges, asset impairment charges, and gains on asset sales. The year-over-year Adjusted operating income increase was primarily driven by higher gross profit.
For the full fiscal year 2023, FDP net loss was $(11.4) million compared with FDP net income of $98.6 million in the prior-year period and Adjusted FDP net income was $101.7 million compared with $94.3 million in the prior-year period. Adjusted FDP net income for the full fiscal year 2023 excludes the above-mentioned other product-related charges, asset impairment and other charges and gain on sale of assets, net of tax effect. In the prior-year period, Adjusted FDP net income excludes asset impairment and other charge and gain on sale of assets, net of tax effect.
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Fourth Quarter and Full Fiscal Year 2023 Business Segment Performance and Selected Financial Data (As reported in business segment data) |
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Fresh Del Monte Produce Inc. and Subsidiaries |
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Business Segment Data |
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(U.S. dollars in millions, except for Gross Margin) – (Unaudited) |
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Quarters ended |
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December 29, 2023 |
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December 30, 2022 |
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Segment Data: |
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|
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Net Sales |
|
Gross Profit |
|
Gross |
|
Net Sales |
|
Gross Profit |
|
Gross |
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|
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|
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Fresh and value-added products |
$ |
582.8 |
|
58 |
% |
|
$ |
22.0 |
|
35 |
% |
|
3.8 |
% |
|
$ |
576.9 |
|
55 |
% |
|
$ |
34.1 |
|
42 |
% |
|
5.9 |
% |
|
Banana |
|
379.6 |
|
38 |
% |
|
|
37.6 |
|
60 |
% |
|
9.9 |
% |
|
|
403.8 |
|
39 |
% |
|
|
38.1 |
|
47 |
% |
|
9.4 |
% |
|
Other products and services |
|
46.2 |
|
4 |
% |
|
|
2.9 |
|
5 |
% |
|
6.3 |
% |
|
|
59.3 |
|
6 |
% |
|
|
9.5 |
|
11 |
% |
|
16.0 |
% |
|
|
$ |
1,008.6 |
|
100 |
% |
|
$ |
62.5 |
|
100 |
% |
|
6.2 |
% |
|
$ |
1,040.0 |
|
100 |
% |
|
$ |
81.7 |
|
100 |
% |
|
7.9 |
% |
|
|
Years ended |
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December 29, 2023 |
|
December 30, 2022 |
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Segment Data: |
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|
|
|
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|
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|
|
|
|
||||||||||
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|
Net Sales |
|
Gross Profit |
|
Gross |
|
Net Sales |
|
Gross Profit |
|
Gross |
||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Fresh and value-added products |
$ |
2,477.8 |
|
57 |
% |
|
$ |
167.3 |
|
48 |
% |
|
6.8 |
% |
|
$ |
2,581.8 |
|
58 |
% |
|
$ |
183.0 |
|
54 |
% |
|
7.1 |
% |
|
Banana |
|
1,638.2 |
|
38 |
% |
|
|
163.3 |
|
47 |
% |
|
10.0 |
% |
|
|
1,619.8 |
|
37 |
% |
|
|
120.7 |
|
35 |
% |
|
7.5 |
% |
|
Other products and services |
|
204.7 |
|
5 |
% |
|
|
20.1 |
|
5 |
% |
|
9.8 |
% |
|
|
240.7 |
|
5 |
% |
|
|
36.5 |
|
11 |
% |
|
15.2 |
% |
|
|
$ |
4,320.7 |
|
100 |
% |
|
$ |
350.7 |
|
100 |
% |
|
8.1 |
% |
|
$ |
4,442.3 |
|
100 |
% |
|
$ |
340.2 |
|
100 |
% |
|
7.7 |
% |
Fourth Quarter 2023 Business Segment Performance
Fresh and Value-Added Products
Net sales for the fourth quarter of 2023 increased by $5.9 million, or 1%, when compared with the prior-year period primarily driven by higher per unit selling price and sales volume of pineapple driven by increased demand of the specialty pineapples, Honeyglow® and Pinkglow®, and higher per unit selling prices of avocados and non-tropical fruit, partially offset by lower net sales of vegetables and prepared foods due to lower per unit selling prices.
Gross profit for the fourth quarter of 2023 was $22.0 million compared with $34.1 million in the prior-year period. The impact to gross profit was primarily driven by lower vegetable net sales, higher per unit production, distribution, and ocean freight costs, driven by the negative impact of fluctuations in exchange rates, principally versus a stronger Costa Rica colon, partially offset by higher net sales. As result of these factors, gross margin decreased to 3.8% from 5.9%. Gross profit for the fresh and value-added segment included $6.3 million of other-product related credits primarily related to insurance and inventory recoveries from the flooding of a seasonal production facility in Greece, partially offset by an inventory write-off of $0.6 million due to shipment rerouting from the conflict in the Red Sea.
Banana
Net sales for the fourth quarter of 2023 was $379.6 million compared with $403.8 million in the prior-year period primarily driven by lower sales volume and per unit selling prices in North America, partially offset by a stronger fourth quarter European market.
Gross profit for the fourth quarter of 2023 slightly decreased to $37.6 million from $38.1 million in the prior-year period primarily driven by lower net sales and higher per unit production costs, offset by lower distribution costs. As a result of this, gross margin increased to 9.9% from 9.4% in the prior-year period.
Other products and services
Net sales for the fourth quarter of 2023 was $46.2 million compared with $59.3 million in the prior-year period mainly due to lower net sales of third-party ocean freight services driven by softened global demand.
Gross profit for the fourth quarter of 2023 was $2.9 million compared with $9.5 million in the prior-year period primarily due to lower net sales.
Full Fiscal Year 2023 Business Segment Performance and Selected Financial Data (continued)
(As reported in business segment data)
Fresh and Value-Added Products
Net sales for full fiscal year 2023 were $2,477.8 million compared with $2,581.8 million in the prior-year period. The decrease in net sales was driven by lower sales volume across most product categories, excluding pineapples and avocados which had higher volumes, lower avocado pricing due to prior-year pricing volatility, and the negative impact of fluctuations in exchange rates mainly versus the Japanese yen, partially offset by higher per unit selling prices across most other product categories.
Gross profit for full fiscal year 2023 was $167.3 million compared with $183.0 million in the prior-year period. Gross profit was negatively impacted by lower net sales and the negative fluctuations of exchange rates versus the Costa Rican colon and Mexican peso, partially offset by lower distribution, fuel, and ocean and inland freight costs. Gross margin slightly decreased to 6.8% in 2023 from 7.1% in 2022.
Banana
Net sales for full fiscal year 2023 were $1,638.2 million compared with $1,619.8 million in the prior-year period. The increase in net sales was driven by higher per unit selling prices in Europe partially offset by lower volumes and the negative impact of exchange rate fluctuations mainly versus the Japanese yen, Korean won, and euro.
Gross profit for full fiscal year 2023 increased 35.3% to $163.3 million compared with $120.7 million in the prior-year period. The increase in gross profit was driven by higher net sales, specifically by higher per unit selling prices in Europe and lower distribution costs, including ocean and inland freight. Partially offsetting the increase in gross profit was higher per unit production cost mainly due to negative fluctuation in exchanges rates in Costa Rica. Gross margin increased to 10.0% in 2023 from 7.5% in 2022.
Other products and services
Net sales for full fiscal year 2023 were $204.7 million compared with $240.7 million in 2022 mainly due to lower net sales of third-party ocean freight services as a result of lower rates and volumes driven by softened global demand.
Gross profit for full fiscal year 2023 was $20.1 million compared with $36.5 million in 2022 mainly due to lower net sales. As a result, gross margin decreased to 9.8% from 15.2% in the prior-year period.
Cash Flows
Net cash provided by operating activities for full fiscal year 2023 was $177.9 million. The increase in net cash provided by operating activities was principally attributable to working capital fluctuations, primarily a reduction in inventories as compared to prior year, largely driven by lower levels of purchases of key raw materials and packaging supplies as compared to prior year due to efforts to secure costs and availability during that period.
Long Term Debt
Long term debt as of the end of 2023 decreased to $400.0 million from $539.8 million as of the prior-year end.
Quarterly Cash Dividend
The Company’s Board of Directors declared on February 23, 2024, an increase to the quarterly cash dividend to $0.25 per share, payable on March 29, 2024, to shareholders of record on March 7, 2024.
|
Fresh Del Monte Produce Inc. and Subsidiaries |
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|
Consolidated Statements of Operations |
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(U.S. dollars in millions, except share and per share data) – (Unaudited) |
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Quarter ended |
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Year ended |
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Statement of Operations: |
December 29, |
|
December 30, |
|
December 29, |
|
December 30, |
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|
Net sales |
$ |
1,008.6 |
|
|
$ |
1,040.0 |
|
|
$ |
4,320.7 |
|
|
$ |
4,442.3 |
|
|
Cost of products sold |
|
952.4 |
|
|
|
958.3 |
|
|
|
3,966.2 |
|
|
|
4,102.1 |
|
|
Other product-related (credits) charges |
|
(6.3 |
) |
|
|
— |
|
|
|
3.8 |
|
|
|
— |
|
|
Gross profit |
|
62.5 |
|
|
|
81.7 |
|
|
|
350.7 |
|
|
|
340.2 |
|
|
Selling, general and administrative expenses |
|
44.2 |
|
|
|
47.5 |
|
|
|
186.7 |
|
|
|
186.8 |
|
|
Gain (loss) on disposal of property, plant and equipment, net |
|
2.1 |
|
|
|
0.3 |
|
|
|
37.9 |
|
|
|
(1.9 |
) |
|
Asset impairment and other charges (credits), net |
|
133.8 |
|
|
|
3.3 |
|
|
|
143.4 |
|
|
|
(4.8 |
) |
|
Operating income (loss) |
|
(113.4 |
) |
|
|
31.2 |
|
|
|
58.5 |
|
|
|
156.3 |
|
|
Interest expense |
|
3.7 |
|
|
|
7.2 |
|
|
|
24.1 |
|
|
|
24.4 |
|
|
Interest income |
|
0.3 |
|
|
|
0.6 |
|
|
|
1.4 |
|
|
|
0.7 |
|
|
Other (income) expense, net |
|
(3.5 |
) |
|
|
(0.9 |
) |
|
|
19.3 |
|
|
|
14.8 |
|
|
Income (loss) before income taxes |
|
(113.3 |
) |
|
|
25.5 |
|
|
|
16.5 |
|
|
|
117.8 |
|
|
Income tax (benefit) provision |
|
(6.8 |
) |
|
|
6.1 |
|
|
|
18.1 |
|
|
|
20.1 |
|
|
Net (loss) income |
$ |
(106.5 |
) |
|
$ |
19.4 |
|
|
$ |
(1.6 |
) |
|
$ |
97.7 |
|
|
Less: Net (loss) income attributable to redeemable and noncontrolling interests |
|
(0.1 |
) |
|
|
1.1 |
|
|
|
9.8 |
|
|
|
(0.9 |
) |
|
Net (loss) income attributable to Fresh Del Monte Produce Inc. |
$ |
(106.4 |
) |
|
$ |
18.3 |
|
|
$ |
(11.4 |
) |
|
$ |
98.6 |
|
|
Earnings per share(1): |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
(2.22 |
) |
|
$ |
0.38 |
|
|
$ |
(0.24 |
) |
|
$ |
2.06 |
|
|
Diluted |
$ |
(2.22 |
) |
|
$ |
0.38 |
|
|
$ |
(0.24 |
) |
|
$ |
2.06 |
|
|
Dividends declared per ordinary share |
$ |
0.20 |
|
|
$ |
0.15 |
|
|
$ |
0.75 |
|
|
$ |
0.60 |
|
|
Weighted average number of ordinary shares: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
47,868,948 |
|
|
|
47,837,743 |
|
|
|
47,979,143 |
|
|
|
47,790,920 |
|
|
Diluted |
|
47,868,948 |
|
|
|
48,046,374 |
|
|
|
47,979,143 |
|
|
|
47,943,464 |
|
|
(1) Earnings per share (“EPS”) is calculated based on Net (loss) income attributable to Fresh Del Monte Produce Inc. |
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Fresh Del Monte Produce Inc. and Subsidiaries |
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Consolidated Balance Sheets |
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(U.S. dollars in millions) – (Unaudited) |
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|
||||
|
|
December 29, |
|
December 30, |
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
33.8 |
|
|
$ |
17.2 |
|
|
Trade accounts receivable, net |
|
387.0 |
|
|
|
373.5 |
|
|
Other accounts receivable, net |
|
95.1 |
|
|
|
91.0 |
|
|
Inventories, net |
|
599.9 |
|
|
|
669.0 |
|
|
Assets held for sale |
|
4.5 |
|
|
|
67.3 |
|
|
Prepaid expenses and other current assets |
|
24.0 |
|
|
|
23.4 |
|
|
Total current assets |
|
1,144.3 |
|
|
|
1,241.4 |
|
|
|
|
|
|
||||
|
Investment in and advances to unconsolidated companies |
|
22.2 |
|
|
|
18.0 |
|
|
Property, plant and equipment, net |
|
1,256.4 |
|
|
|
1,309.5 |
|
|
Operating lease right-of-use assets |
|
213.8 |
|
|
|
213.8 |
|
|
Goodwill |
|
401.9 |
|
|
|
422.9 |
|
|
Intangible assets, net |
|
33.3 |
|
|
|
135.0 |
|
|
Deferred income taxes |
|
51.5 |
|
|
|
47.4 |
|
|
Other noncurrent assets |
|
60.7 |
|
|
|
70.9 |
|
|
Total assets |
$ |
3,184.1 |
|
|
$ |
3,458.9 |
|
|
|
|
|
|
||||
|
Liabilities and shareholders’ equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued expenses |
$ |
479.0 |
|
|
$ |
549.9 |
|
|
Current maturities of debt and finance leases |
|
1.4 |
|
|
|
1.3 |
|
|
Current maturities of operating leases |
|
48.6 |
|
|
|
41.6 |
|
|
Income taxes and other taxes payable |
|
11.6 |
|
|
|
14.2 |
|
|
Total current liabilities |
|
540.6 |
|
|
|
607.0 |
|
|
|
|
|
|
||||
|
Long-term debt and finance leases |
|
406.1 |
|
|
|
547.1 |
|
|
Operating leases, less current maturities |
|
142.1 |
|
|
|
147.3 |
|
|
Retirement benefits |
|
82.3 |
|
|
|
82.4 |
|
|
Other noncurrent liabilities |
|
27.6 |
|
|
|
28.5 |
|
|
Deferred income taxes |
|
72.7 |
|
|
|
71.6 |
|
|
Total liabilities |
|
1,271.4 |
|
|
|
1,483.9 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Redeemable noncontrolling interest |
|
— |
|
|
|
49.4 |
|
|
Shareholders’ equity: |
|
|
|
||||
|
Preferred shares |
|
— |
|
|
|
— |
|
|
Ordinary shares |
|
0.5 |
|
|
|
0.5 |
|
|
Paid-in capital |
|
597.7 |
|
|
|
548.1 |
|
|
Retained earnings |
|
1,341.4 |
|
|
|
1,397.6 |
|
|
Accumulated other comprehensive loss |
|
(43.3 |
) |
|
|
(41.5 |
) |
|
Total Fresh Del Monte Produce Inc. shareholders’ equity |
|
1,896.3 |
|
|
|
1,904.7 |
|
|
Noncontrolling interests |
|
16.4 |
|
|
|
20.9 |
|
|
Total shareholders’ equity |
|
1,912.7 |
|
|
|
1,925.6 |
|
|
Total liabilities, redeemable noncontrolling interest and shareholders’ equity |
$ |
3,184.1 |
|
|
$ |
3,458.9 |
|
|
|
|
|
|
||||
|
Fresh Del Monte Produce Inc. and Subsidiaries |
|||||||
|
Consolidated Statements of Cash Flows |
|||||||
|
(U.S. dollars in millions) – (Unaudited) |
|||||||
|
|
Year ended |
||||||
|
|
December 29, |
|
December 30, |
||||
|
Operating activities: |
|
|
|
||||
|
Net (loss) income |
$ |
(1.6 |
) |
|
$ |
97.7 |
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
84.8 |
|
|
|
92.5 |
|
|
Amortization of debt issuance costs |
|
0.5 |
|
|
|
0.6 |
|
|
Share-based compensation expense |
|
9.9 |
|
|
|
6.9 |
|
|
Asset impairments |
|
141.3 |
|
|
|
3.5 |
|
|
Change in uncertain tax positions |
|
1.5 |
|
|
|
1.7 |
|
|
(Gain) loss on disposal of property, plant and equipment, net |
|
(37.9 |
) |
|
|
1.9 |
|
|
Deferred income taxes |
|
(3.8 |
) |
|
|
2.5 |
|
|
Adjustment of Kunia Well Site liability |
|
— |
|
|
|
(9.9 |
) |
|
Gain on release of cumulative translation adjustment |
|
(2.4 |
) |
|
|
— |
|
|
Other, net |
|
(1.3 |
) |
|
|
1.6 |
|
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Receivables |
|
(19.3 |
) |
|
|
(37.4 |
) |
|
Inventories |
|
64.7 |
|
|
|
(72.1 |
) |
|
Prepaid expenses and other current assets |
|
1.7 |
|
|
|
(0.2 |
) |
|
Accounts payable and accrued expenses |
|
(64.1 |
) |
|
|
(17.8 |
) |
|
Other noncurrent assets and liabilities |
|
3.9 |
|
|
|
(9.7 |
) |
|
Net cash provided by operating activities |
|
177.9 |
|
|
|
61.8 |
|
|
|
|
|
|
||||
|
Investing activities: |
|
|
|
||||
|
Capital expenditures |
|
(57.7 |
) |
|
|
(48.1 |
) |
|
Investments in unconsolidated companies |
|
(5.3 |
) |
|
|
(9.7 |
) |
|
Proceeds from sales of property, plant and equipment and subsidiary |
|
119.9 |
|
|
|
8.7 |
|
|
Cash paid from derivatives not designated as hedges |
|
— |
|
|
|
(0.2 |
) |
|
Other investing activities |
|
(0.5 |
) |
|
|
0.2 |
|
|
Net cash provided by (used in) investing activities |
|
56.4 |
|
|
|
(49.1 |
) |
|
|
|
|
|
||||
|
Financing activities: |
|
|
|
||||
|
Proceeds from debt |
|
590.5 |
|
|
|
1,066.3 |
|
|
Payments on debt |
|
(730.3 |
) |
|
|
(1,045.6 |
) |
|
Distributions to noncontrolling interests |
|
(17.9 |
) |
|
|
(0.9 |
) |
|
Purchase of redeemable noncontrolling interest |
|
(5.2 |
) |
|
|
— |
|
|
Share-based awards settled in cash for taxes |
|
(0.8 |
) |
|
|
(1.6 |
) |
|
Dividends paid |
|
(35.9 |
) |
|
|
(28.7 |
) |
|
Repurchase and retirement of ordinary shares |
|
(11.8 |
) |
|
|
— |
|
|
Other financing activities |
|
(2.1 |
) |
|
|
(1.5 |
) |
|
Net cash used in financing activities |
|
(213.5 |
) |
|
|
(12.0 |
) |
|
Effect of exchange rate changes on cash |
|
(4.2 |
) |
|
|
0.4 |
|
|
Net increase in cash and cash equivalents |
|
16.6 |
|
|
|
1.1 |
|
|
Cash and cash equivalents, beginning |
|
17.2 |
|
|
|
16.1 |
|
|
Cash and cash equivalents, ending |
$ |
33.8 |
|
|
$ |
17.2 |
|
Non-GAAP Measures
The Company’s results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Certain information presented in this press release reflects adjustments to GAAP measures such as amounts related to asset impairment and other charges (credits), net, gain on disposal of property, plant and equipment, net, subsidiary, and other product-related charges. These adjustments result in non-GAAP financial measures and are referred to in this press release as Adjusted gross profit, Adjusted gross margin, Adjusted operating income, Adjusted FDP net income (loss), and Adjusted diluted EPS. Management believes these adjustments provide a more comparable analysis of the underlying operating performance of the business.
This press release also includes non-GAAP measures such as EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin. EBITDA is defined as net income (loss) attributable to Fresh Del Monte Produce Inc. excluding interest expense, interest income, provision (benefit) for income taxes, depreciation and amortization, and share-based compensation expense. Adjusted EBITDA represents EBITDA with additional adjustments for non-recurring items, including asset impairment and other charges (credits), net, gain on disposal of property, subsidiary and other product-related charges. EBITDA margin represents EBITDA as a percentage of net sales, and Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.
Adjusted gross profit, Adjusted operating income, Adjusted FDP net income (loss), and Adjusted EBITDA provide the Company with an understanding of the results from the primary operations of its business. The Company uses these metrics because management believes they provide more comparable measures to evaluate period-over-period operating performance since they exclude special items that are not indicative of the Company’s core business or operations. These measures may be useful to an
Contacts
Monica Vicente
Senior Vice President, Chief Financial Officer
305-520-8433
