Fresh Del Monte Q1 sales reach US$1.04B as net income falls to US$10M
Adjusted net income was US$29.9 million, or US$0.63 per diluted share, compared with reported net income of US$10.0 million.
USA- Fresh Del Monte Produce has reported first-quarter net sales of US$1,044.1 billion, a 4.9% decrease from the previous year, while net income dropped to US$10.0 million from US$31.1 million.
Firstly, the decline in sales primarily reflects the divestiture of Mann Packing in late 2025 and lower avocado revenues caused by industry-wide oversupply, which reduced per-unit selling prices.
However, the company’s acquisition of Del Monte Foods in March 2026 partially offset these losses, generating initial revenues in its first week of ownership. Exchange rate movements, particularly the euro, also had a favourable impact.
Gross profit stood at US$89.0 million, reflecting an 8.5% margin. Lower returns in the poultry and meat business, driven by weaker demand, weighed on results.
The prepared foods segment also faced higher per-unit production and procurement costs. Supply chain disruptions in the Strait of Hormuz, linked to ongoing geopolitical tensions, along with unfavourable currency movements driven by a stronger Costa Rican colon, further affected profitability.
“Our first-quarter results reflect disciplined execution across a complex operating environment, with the business demonstrating resilience as we continue to strengthen and expand our portfolio,” said Mohammad Abu-Ghazaleh, chairman and CEO.
“Importantly, the quarter included the initial contribution following the closing of the Del Monte Foods acquisition, expanding our portfolio and strengthening our position across both the perimeter and centre of the store.”
For investors, the primary financial drivers remain portfolio diversification and geographic reach. For instance, the Del Monte Foods acquisition shifts the company beyond fresh produce into shelf-stable prepared foods, including packaged vegetables, tomato products, meals, snacks, and beverages, across Europe, the Middle East, and Africa.
Consequently, revenue streams become less vulnerable to volatility in fresh products, such as avocado price swings or banana oversupply.
On the other hand, regarding supply chain risks, Fresh Del Monte manages disruptions through multiple strategies. These include hedging currency fluctuations, diversifying shipping routes to avoid conflict zones such as the Strait of Hormuz and maintaining flexible sourcing agreements.
Adjusted net income was US$29.9 million, or US$0.63 per diluted share, compared with reported net income of US$10.0 million. The difference reflects asset impairments and other charges.
Looking ahead, management remains focused on scaling the Del Monte Foods business and strengthening the overall platform.
For investors, the signal is clear: diversification reduces earnings volatility, while monitoring geopolitical supply chains remains essential to protect margins.
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