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Investing.com -- Fresh Del Monte Produce (NYSE: FDP) shares fell 4% after the company reported its fourth quarter and full fiscal year 2024 financial results. The company posted a fourth-quarter earnings per share (EPS) of $0.26, which fell short of the analyst consensus estimate of $0.43. Revenue for the quarter was also slightly below expectations, coming in at $1.01 billion against the consensus estimate of $1.02 billion.
Despite the earnings miss, the company highlighted several positive developments in its press release. Fresh Del Monte reported a 5% increase in net sales for its fresh and value-added products for the fiscal year 2024. The segment's gross margin improved to 9.3% from 6.8% the previous year. Additionally, the company reduced its long-term debt by $156 million, or 39%, ending the fiscal year with $244 million in debt. The quarterly dividend was increased for the third consecutive year, signaling confidence in the company's cash flow and financial stability.
Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer of Fresh Del Monte, commented on the results, saying, "Our full-year 2024 results reflect the effectiveness of our strategic focus and operational improvements. This success, achieved despite facing several challenges in 2024, was primarily driven by the exceptional performance of our fresh and value-added products segment."
The company's operating income for the fourth quarter was $30.3 million, a significant turnaround from the operating loss of $113.4 million in the same period last year. This improvement was largely due to a $133.8 million non-cash asset impairment charge in the previous year's quarter. Adjusted operating income for the fourth quarter was $17.1 million compared to $12.0 million in the prior-year period.
For the full fiscal year 2024, Fresh Del Monte reported a net income of $142.2 million, a stark contrast to the net loss of $11.4 million in the previous year. Adjusted net income for the fiscal year was $116.2 million, up from $101.7 million in the prior year.
The decrease in the company's stock price reflects investor reaction to the earnings shortfall and the slight revenue miss. Despite the positive aspects of the report, such as debt reduction and increased dividends, the market's immediate response was negative, emphasizing the importance of meeting or exceeding analyst expectations.
As the company moves forward, the focus remains on expanding key segments and delivering sustainable value for shareholders. Fresh Del Monte's strategic focus on its fresh and value-added products appears to be a central pillar of this approach, as evidenced by the segment's strong performance in the fiscal year 2024.
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