Fresh Del Monte Produce Inc. (NYSE:FDP) reported third-quarter adjusted earnings that topped expectations, driven by its continued shift toward higher-margin categories and portfolio optimization efforts. Shares rose modestly in premarket trading Wednesday following the announcement.
The company posted adjusted earnings per share of $0.69, well ahead of the $0.50 analyst consensus, while revenue totaled $1.02 billion, slightly below expectations of $1.04 billion but up from the prior-year period.
Profitability gains were reflected in the company’s fresh and value-added products segment, where gross margin expanded to 11.2%, compared with 10.1% a year ago. Although overall gross margin slipped to 7.9%, the improvement in premium categories underscores the firm’s disciplined focus on higher-value offerings.
“We delivered another quarter of strategic progress, with overall net sales slightly higher and gross margin expanding in our fresh and value-added products segment,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO.
“These results reflect the strength of our execution and our disciplined focus on higher-margin, value-added categories that continue to drive profitable growth.”
A major milestone during the quarter was the agreement to sell the Mann Packing business, a divestment expected to close in Q4 2025. The company also exited underperforming banana operations in the Philippines, steps aligned with its long-term strategy to streamline operations and enhance profitability.
The banana division was the main drag on performance, with gross margin dropping to 1.3% from 6.2% a year earlier due to higher production and sourcing costs linked to adverse weather in key growing regions earlier in the year.
To reward shareholders, Fresh Del Monte’s board declared a quarterly cash dividend of $0.30 per share, payable December 5, 2025, to shareholders of record as of November 12, 2025.