Fresh Del Monte Produce : IR Presentation - First Quarter 2024

Q12024 Earnings Call Presentation

May 2, 2024	1

Mohammad Abu-Ghazaleh

Monica Vicente

Chairman & CEO

SVP, CFO

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", "anticipates", "may" or similar expressions with respect to various matters. Specifically, this presentation and the earnings call contain forward-looking statements regarding the Company's plans and expectations for future performance, including: the Company's focus on operational excellence, cost discipline and strategic capital allocation to improve profitability; its ability to generate value for its shareholders, including through focusing on its strengths in pineapple, fresh-cut and sustainability-related projects and growing market share; expected segment results in 2024; expected capital expenditures in 2024; and expected progress on its strategic alternatives with respect to Mann Packing. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The Company's actual plans and performance may differ materially from those in the forward-looking statements as a result of various factors, including (i) ongoing elevated commodity and supply chain costs, including costs of raw materials, packaging materials, labor, energy, fuel and transportation, (ii) the Company's ability to successfully execute on its strategic growth plans, including the use of AI and other technology to effectively manage costs and pricing, (iii) the outcome of strategic alternatives with respect to the Mann Packing operation, (iv) the impact of foreign currency fluctuations, including the effectiveness of our hedging activities, (v) the impact of asset impairment or other charges, including those associated with exit activities, crop or facility damage or otherwise, (vi) the impact of ongoing conflict in the Middle East on supply chain logistics and other disruptions in the Company's supply chain, (vii) trends and other factors affecting consumer preferences or consumer, (viii) factors outside the Company's control that impact its and other growers' crop quality and yields, such as crop disease, severe weather conditions, disruptions or issues that impact its production facilities or complex logistics network, and the availability of sufficient labor during peak growing and harvesting seasons, (ix) competitive pressures and the Company's ability to realize the full benefits of the inflation driven price increases implemented, (x) the impact of claims and adjustments proposed by the IRS or other foreign taxing authorities in connection with our current or future tax audits and our ability to successfully contest such tax claims and pursue necessary remedies, (xi) the cost and other implications of changes in regulations applicable to our business, including potential legislative or regulatory initiatives in the United States or elsewhere directed at mitigating the effects of climate change, (xii) damage to our reputation or brand names or negative publicity about our products, and (xiii) the Company's ability to successfully manage the risks associated with international operations. In addition, these forward-looking statements and the information in this presentation and the earnings call are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company's Securities and Exchange Commission filings, including the Company's most recently filed Annual Report on Form 10-K. All forward-looking statements in this presentation are based on information available to us on the date hereof, and we assume no obligation to update such statements.

AGENDA

• Business Update
• Q1 Financial Results
• Q&A

4

BUSINESS UPDATE

• Net sales impacted by decrease in bananas, driven by lower volume and pricing from service level issues and competitive market pressures in North America and Europe, and lower rates in the third-party ocean freight business
• Fresh and Value-Added Segment
• • Revenue up 5% driven by higher overall sales volume and pricing
  • Avocado program saw lift in quarter with revenue up 23% driven by pricing improvements
  • Gross margin up 100 basis points and adjusted gross margin* up 50 basis points
• Total debt reduced by 15% compared to prior-year period
• Focused on strengths in pineapple, fresh-cut and value-added projects
• Released new pineapple offerings, Rubyglow® pineapple and Precious Honeyglow® pineapple

*Non-GAAP financial measure. Reconciliations and other information required by Regulation G can be found in the Appendix section of the presentation.

5

Q12024

FINANCIAL RESULTS

Q1 2024 FINANCIAL RESULTS

NET SALES

Q1: $1,108M vs. $1,129M PY

• Lower net sales of bananas, driven by lower volume and pricing, and lower rates in the third-party ocean freight business in our other products and services segment
• Partially offset by higher overall sales volume and pricing in our fresh and value- added products segment

GROSS PROFIT

Q1: $82M vs. $97M PY

• Lower overall net sales, higher per unit production and procurement costs, and the impact of fluctuations in exchange rates
• Partially offset by lower distribution and ocean freight costs

ADJ. GROSS PROFIT*

Q1: $81M vs. $99M PY

ADJ. OPERATING INCOME*

Q1: $31M vs. $51M PY

ADJ. FDP NET INCOME*

Q1: $16M vs. $27M PY

ADJ. DILUTED EPS*

Q1: $0.34 vs. $0.55 PY

ADJ. EBITDA*

Q1: $44M vs. $65M PY

*Non-GAAP financial measure. Reconciliations and other information required by Regulation G can be found in the Appendix section of the presentation.

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FRESH AND VALUE-ADDED PRODUCTS

NET SALES	Q1 2024
	• Net sales up 5% compared with prior-year period due to higher sales volume of
	pineapples, melons, and prepared food products and higher per unit selling prices of
	avocados
	• Gross profit increased due to overall higher net sales, partially offset by higher
	production and procurement costs of pineapples and avocados, as well as the
	impact of the strengthening Costa Rican colon and Mexican peso
	• 62% year-over-year volume growth in our higher margin specialty pineapples,
GROSS PROFIT	Pinkglow® pineapple and 13% year-over-year volume growth in our higher margin
	specialty Honeyglow® pineapple
	• Avocado revenue increased 23% compared with prior-year period due to pricing
	improvements
	• Gross margin increased to 8.3% compared with 7.3% in prior-year period

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BANANA

NET SALES

GROSS PROFIT

Q1 2024

• Net sales decrease driven by 5% lower volume partially due to service level issues and lower selling prices due to competitive market pressures in North America and Europe
• Gross profit decreased due to lower net sales, higher per unit production and procurement costs, and negative fluctuations due to a stronger Costa Rican colon, partially offset by lower distribution and ocean freight cost
• Gross margin decreased to 5.7% compared with 10.2% in the prior-year period

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OTHER PRODUCTS & SERVICES

NET SALES

Q1 2024

• Lower net sales of third-party ocean freight services as a result of lower rates driven by the competitive market environment combined with the impact of the sale of our plastics subsidiary in South America in 2023
• Gross profit decreased due to lower net sales
• Gross margin was 8.9% compared with 11.2% in the prior-year period

GROSS PROFIT

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