FRESH DEL MONTE PRODUCE INC Q4 FY2025 earnings call

• Fiscal 2025 was a year of focus, discipline, and portfolio optimization. Moved from broad market strategy to core strengths, divested noncore distractions. • Acquiring select assets from Del Monte Foods through court-supervised bankruptcy process, expect transaction to close before end of first quarter. • Sold 3 older break bulk vessels and completed divestiture of Mann Packing. • Focus on operational efficiency, high-return investments, strengthening balance sheet, expanding margins, and generating cash flow.

Fresh and Value-Added Product Segment: Net sales were $2.6 billion, adjusted net sales $2.4 billion; gross profit $299 million, adjusted gross profit $328 million, adjusted gross margin 13.7%. Banana Segment: Net sales $1.5 billion; gross profit $71 million, adjusted gross profit $70 million, adjusted gross margin 4.7%. Other Products and Services Segment: Net sales $210 million; gross profit $29 million, gross margin 13.7%. Fourth quarter net sales $1.02 billion, adjusted net sales $968 million; gross profit $106 million, adjusted gross profit $109 million, adjusted gross margin 11.3%.

• Full year 2026 net sales on continuing operating basis expected 1%-2% higher driven by higher per unit selling prices. • Fresh and value-added segment gross margin expected 12%-14%, banana segment 5%-6%, Other Products and Services segment 12%-13%. • Selling, general and administrative expenses expected $210 million-$215 million. • Full year net cash provided by operating activities expected $220 million-$230 million. • Excludes divested Mann Packing business and contribution from Del Monte Foods pending transaction.

• Macroeconomic conditions, industry dynamics, and other factors outside control may impact results. • Weather-related impacts and congestion at key ports may disrupt logistics. • Adverse weather in growing regions, diseases like Black Sigatoka affecting banana segment. • Land availability and government approvals issues affecting pineapple production expansion.

Q: What about margins in fresh and value add with guidance of 12%-14% vs last quarter's 14.8%?

A: Feel comfortable with 12%-14% guidance.

Q: Trends in fresh-cut in fourth quarter and 2026?

A: Fresh-cut performing well, strong demand, volumes and pricing up, U.S. and U.K. performing well.

Q: Pineapple business supply and Honeyglow, Pink pineapple?

A: Market demand higher than supply, expanding production in Costa Rica, planting new acreage, expanding in Brazil but takes 2-3 years, Pink pineapple volume at full production, Honeyglow a growing category.

Q: Banana segment cost pressures and regions?

A: North America doing reasonably well, Asia impacted margins.

Q: Capital spending for 2026 and Del Monte acquisition?

A: Prefer to postpone capital spending estimate until next quarter, will have better idea after Del Monte acquisition.

Q: Del Monte acquisition sales growth, profitability?

A: Wait until first quarter to give guidance as process through bankruptcy court.

Q: Long-held conviction to get Del Monte brand back together?

A: Conviction is to make money, unifying brand to accelerate margins and profitability, become unique company with fresh and food divisions.