Fresh Del Monte Produce (FDP -4.67%), a global fruit and fresh produce company best known for its signature Del Monte® brand, reported results for Q2 FY2025 that exceeded analyst expectations. On July 30, 2025, it released financial results for the second quarter of fiscal 2025, highlighting stronger margins and sales growth. Non-GAAP earnings per share were $1.23 in Q2 2025, exceeding the $0.95 expected by analysts, while GAAP revenue of $1,182.5 million beat estimates by 2.2%. Year-over-year, GAAP revenue increased 3.8% to $1,182.5 million from $1,139.7 million in Q2 2024, and Non-GAAP earnings grew 16.0% compared to Q2 2024. The company’s results showed momentum in core product categories, but also pointed to ongoing cost pressures and segment-specific challenges.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.23 | $0.95 | $1.06 | 16.0 % |
| Revenue | $1,182.5 million | $1,157.5 million | $1,139.7 million | 3.8 % |
| Gross Profit (Non-GAAP) | $120.1 million | $114.4 million | 5.0 % | |
| Operating Income (Non-GAAP) | $68.8 million | $64.5 million | 6.7% | |
| Adjusted EBITDA | $95.4 million | $89.0 million | 7.2 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Key Success Factors
Fresh Del Monte Produce is a major international supplier of fresh and prepared fruits and vegetables, with operations in more than 80 countries. The business is anchored by its Del Monte® brand, which holds strong recognition in North America and beyond. Its product range spans fresh pineapples, bananas, avocados, packaged salads, and fresh-cut fruits.
The company’s success relies heavily on several focus areas. Vertical integration allows it to manage the entire supply chain, from farming to transportation and distribution. A strong brand reputation supports product differentiation, while an extensive distribution network enables efficient global delivery. Continued innovation in new varieties, such as carbon-neutral or specialty pineapples, and an ongoing push into value-added products like fresh-cut fruit and avocado oil, are central to its growth strategy. Expansion into new regions and strategic alliances further increase its market reach.
Quarterly Performance: Segments, Margins, and Operations
The period saw Fresh and Value-Added products drive both sales and profit gains. Net sales for this segment rose to $722.6 million (GAAP). This was up 4.1% from the prior-year quarter. GAAP gross profit for the fresh and value-added products segment increased 9.0% to $84.9 million, compared to $77.9 million in the prior-year period, while GAAP gross margin increased from 11.2% to 11.7%. These gains were mainly driven by higher selling prices in the Company's pineapple product line and increased volumes in fresh-cut fruit. Favourable currency shifts also contributed. However, Sales of fresh-cut vegetables declined following operational changes in Q4 2024, including the divestiture of the Fresh Leaf Farms business.
In the Banana segment, Net sales for the Banana segment were $410.0 million, compared with $394.3 million in the prior-year period. Despite higher per-unit prices across all regions and a rebound in Middle East volumes after last year's shipping disruptions, gross margin declined from 7.6% to 7.3%. This margin decrease reflected elevated production and distribution costs, including weather-related impacts in key sourcing regions and higher tariffs in North America. Lower banana volumes in Asia and North America offset some gains.
The Other Products and Services segment, which includes smaller categories such as poultry and meats, reported a 2.8% decline in net sales. GAAP gross profit also fell slightly. These results were tied to lower sales prices, especially for poultry, leading to both reduced segment sales and gross margin contraction. This segment remains a modest part of the business and did not offset broader gains.
Fresh Del Monte’s vertically integrated model showed clear operational benefits. Management cited its ability to maintain timely product delivery and quality despite global shipping and tariff disruptions. Cash flow for the first six months was $159.2 million, up from $143.7 million last year. The company also substantially reduced long-term debt, from $285.0 million in Q2 2024 to $201.0 million in Q2 2025. Cash and equivalents reached $85.5 million as of Q2 2025, up from $32.6 million (GAAP) at FY2024 year-end. No share repurchases occurred during the quarter.
The quarterly dividend was raised 20% to $0.30 per share, compared to $0.25 per share in Q2 2024. This marks a continuation of the company’s policy to return capital to shareholders and follows a previous dividend. The dividend is payable on September 5, 2025.
Product Families and Innovation
These represent core offerings in the pineapple category, which continues to see strong demand due to favorable pricing and nutritional appeal. The fresh-cut fruit business delivered gains in both volume and margin compared to the prior-year period. Avocado products, spanning both fresh and processed formats like guacamole and, following a recent acquisition, avocado oil, are viewed as a major future growth avenue for the business. These products benefit from changing consumer diets and have higher gross margins than commodity fruit lines.
The company's innovation pipeline aims to balance both health and sustainability trends. The launch of Del Monte Zero™ carbon-neutral pineapples is an example, as is the investment in Ugandan avocado oil production through majority ownership of Avolio. Management has commented on increased consumer interest in fresh-cut categories and New product categories, such as biofertilizers, are in early stages but may affect future results if growth targets are met.
Outlook and Priorities for the Next Quarter
Management affirmed its full-year FY2025 outlook, projecting net sales growth of 2%, and maintaining gross margin targets of 10–11% for Fresh and Value-Added products. For the Banana segment, gross margin is expected to remain in the historical 5–7% range, with Gross margin for Other Products and Services is targeted in the 12–14% range. Operating cash flow is projected at $180–190 million, and Planned capital expenditures are between $80–90 million. These targets are consistent with earlier statements this year.
Investors should monitor ongoing input and distribution costs—especially in bananas—which are being affected by tariffs, weather, and broader logistical risks. Fresh Del Monte’s supply chain flexibility, diversified sourcing, and innovation focus remain central themes for long-term growth. Management did not issue revisions to prior guidance and continues to monitor developments related to tariffs, macroeconomic conditions, and product demand. All strategic priorities—from product innovation to disciplined capital management—remain in place as the company moves through the second half of the year.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
