Slide 1: Q2 2024 Earnings Call Presentation
Q22024 Earnings Call Presentation August 1, 2024 1
Slide 2: Presenters: Chairman & CEO and SVP, CFO
Mohammad Abu-Ghazaleh Monica Vicente Chairman & CEO SVP, CFO
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation and the related earnings call contain certain forward-looking statements regarding the intent, beliefs or current expectations of the Company. These statements include statements that are preceded by, followed by or include the words “believes”, “expects”
Slide 4: Agenda
AGENDA • Business Update • Q2 Financial Results • Q&A 4
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS Fresh & Value-Added Products Segment • Gross margins 11% vs. 9%; sales increased $17 million YoY • Includes pineapples, fresh-cut fruit and avocados Global Product Leadership • Leader in pineapple products • Anticipated pineapple volume growth: CAGR of 3% over the next three year
Slide 6: Q2 2024 Financial Results
Q22024 FINANCIAL RESULTS
Slide 7: Q2 2024 Financial Results
Q2 2024 FINANCIAL RESULTS NET SALES ADJ. OPERATING INCOME* Q2: $1,140M vs. $1,181M PY Q2: $65M vs. $68M PY GROSS PROFIT ADJ. FDP NET INCOME* Q2: $113M vs. $117M PY Q2: $51M vs. $46M PY GROSS MARGIN ADJ. DILUTED EPS* Q2: 9.9% vs. 9.9% PY Q2: $1.06 vs. $0.96 PY ADJ GROSS PROFIT * ADJ. EBITDA* Q2: $114
Slide 8: Fresh and Value-Added Products
FRESH AND VALUE-ADDED PRODUCTS NET SALES Q2 2024 • Net Sales: • Increased 2% compared with prior-year period • Higher per unit selling prices of avocados, along with higher sales volume and higher per unit selling prices of non-tropical fruit • Partially offset by lower net sales of vegetables and f
Slide 9: Banana
BANANA NET SALES Q2 2024 • Net Sales: • 10% lower sales volume • Lower sales volume in North America and lower sales volume and per unit selling prices in Asia • Gross Profit: • Lower net sales, higher per unit production and procurement costs and the negative impact from a stronger Costa Rican colo
Slide 10: Other Products & Services
OTHER PRODUCTS & SERVICES NET SALES Q2 2024 • Net Sales: • Impacted by the sale of our plastic products business in South America in the second quarter of 2023 • Gross Profit: • Higher per unit selling prices in our poultry and meats business • Gross Margin: GROSS PROFIT • 10.7% compared with 7.8% i
Slide 11: Selected Financial Data
SELECTED FINANCIAL DATA
Slide 12: Q2 2024 Selected Financial Results
Q2 2024 SELECTED FINANCIAL RESULTS Adj. Leverage Ratio* Income Tax Rate 1.21x vs. 1.45x PY 19% vs. 19% PY Capital Spending Net Cash Provided by Operating Activities $21M vs. $19M PY $144M vs. $133M PY Dividend Long-Term Debt Declared $0.25/share vs. $0.20/share PY $285M vs. $400M PY 12 12 *Non-GAAP
Slide 13: Q&A
Q&A
Slide 14: Appendix: Non-GAAP Reconciliations
APPENDIX NON-GAAP RECONCILIATIONS 14
Slide 15: Reconciliations of Non-GAAP Financial Measures: Second Quarter 2024
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Second Quarter 2024 The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Certain information presented reflects adjustments to GAAP measures that are
Slide 16: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 17: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 18: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 19: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 20: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 21: Trailing Twelve Months Leverage Ratio Q2 2024
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Trailing Twelve Months Leverage Ratio Q2 2024 (U.S. dollars in millions) - Unaudited Trailing Twelve Months Q3 2023 Q4 2023 Q1 2024 Q2 2024 June 28, 2024 Net income attributable to Fresh Del Monte Produce In
Slide 22: Reconciliations of Non-GAAP Financial Measures: Footnotes
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) Other product-related charges for the quarter ended June 28, 2024, primarily consisted of $0.5 million related to shipment disruptions in the Red Sea and $0.5 million in clean-up costs associated with th