Fri, Aug 2, 12:33 PM (88 days ago)
Fresh Del Monte Produce Inc.'s Q2 2024 report reveals a mixed performance. Net sales decreased to $1,139.7 million from $1,180.5 million in Q2 2023, primarily due to lower banana sales. Gross profit fell to $113.2 million from $116.8 million, impacted by higher production costs and adverse weather in Central America and the Philippines. Selling, general, and administrative expenses rose by $3.1 million to $49.9 million, driven by higher employee benefits and professional fees. Operating income dropped by $3.9 million to $68.2 million, influenced by lower gross profit and higher operating expenses. Interest expense decreased due to lower debt balances, while other income improved significantly due to equity earnings and foreign currency gains. Cash flow from operations increased to $143.7 million from $132.7 million, attributed to favorable working capital changes. The company reduced its debt by $115 million and paid dividends of $23.9 million. Future uncertainties include geopolitical tensions, inflationary pressures, and ongoing tax disputes, which could impact financial performance.