Fresh Del Monte Produce reported financial results for the fourth quarter and the full fiscal year ended December 29, 2023.
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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. ■