US – Fresh Del Monte Produce Inc. has unveiled its financial results for the fourth quarter and the entire fiscal year 2023, showcasing a noteworthy upswing in gross profit margin to 8.1% for FY 2023, up from 7.7% in the preceding year.

Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO, expressed satisfaction with the outcomes, emphasizing the positive aspects of the full-year 2023 results.

“Despite a dip in net sales, the company remains optimistic about its overall performance,” he stated.

He highlighted the robust gross margins and cash flow, pivotal in achieving substantial adjusted earnings per share growth throughout the year.

Additionally, the company successfully reduced its long-term debt by USD 140 million, concluding the year with an adjusted leverage ratio of 1.7x. Abu-Ghazaleh underscored the commitment to returning value to shareholders by implementing a 25% increase in dividends for the second consecutive year.

He remarked, “Our ability to control costs and sell underutilized assets for USD 120 million in 2023 allowed us to achieve the company’s highest full-year gross profit and margin since 2016.”

The financial results indicated a decline in net sales to USD 4,320.7 million for the full fiscal year 2023, compared to USD 4,442.3 million in the prior year.

However, the balance sheet reflected a substantial reduction in long-term debt, decreasing to $400 million from the previous year’s USD 539.8 million.

The cash flow statement further emphasized the company’s financial health, with net cash from operating activities reaching USD 177.9 million, demonstrating robust cash generation capabilities.

Fresh Del Monte outlined some of its strategic initiatives, notably exploring alternatives for its Mann Packing operation and placing a heightened emphasis on profitability improvements.

In an analysis by Yahoo Finance, Fresh Del Monte’s financial performance was evaluated as reflective of a company adept at navigating the complexities of the global produce market.

Despite a reported net loss and reduced net sales, the company’s increased gross profit margin and successful debt reduction underscore its strong underlying operational efficiency.

The article emphasizes that the company’s decision to increase the quarterly dividend signals confidence in its financial stability, providing further reassurance to investors.

As Fresh Del Monte continues to strategically position itself in the ever-evolving global market, these results paint a picture of resilience and adaptability, positioning the company for sustained growth in the coming fiscal year.

For all the latest fresh produce industry news updates from Africa, the Middle East, and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook, and subscribe to our YouTube channel.