Fresh Del Monte's Q3 2025: Higher banana prices boost sales amid strategic reductions
Global produce giant Fresh Del Monte reported its financial results for the third quarter of 2025, ending on September 26.
The financial report was significantly affected by the divestiture of Mann Packing. The transaction is currently subject to customary closing conditions, and the company expects to close it during Q4 2025.
Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO, celebrated the results, saying Q3 was a period of strategic progress for the company.
“We took decisive actions to optimize our portfolio and drive long-term profitability by exiting underperforming banana operations in the Philippines and divesting Mann Packing," he added. "These strategic moves simplify our operations, sharpen our focus on higher-margin, higher-growth categories, and position us to deliver stronger earnings and sustained value for our shareholders."
Fresh Del Monte's Q3 financial results
According to the report, net sales for the period were $1,021.9 million, compared to $345.3 million in Q3 2024. The adjusted number accounting for the divestiture of Mann Packing rounds up to $959.5 million.
The increase, says the document, reflects higher net sales in the company’s banana and other products and services business segments. The shift, the report continues, was primarily driven by higher per-unit selling prices in Fresh Del Monte's banana segment.
Fresh Del Monte says other contributing factors included the impact of tariff-related price adjustments in North America and the positive effect of exchange rate fluctuations on the Euro.
The increase was partially offset by lower sales volume in the fresh-cut vegetable product line due to strategic operational reductions taken during Q4 of 2024, including the sale of certain assets of Fresh Leaf Farms.
Meanwhile, gross profit for the period was $80.8 million, compared to $93.8 million in the same timeframe the year prior.
The decrease was primarily driven by higher per-unit production and procurement costs in the banana segment, the company says, as well as increased distribution costs. Adjusted gross profit for the third quarter of 2025 was $88.1 million, excluding the operating results of Mann Packing. Gross margin decreased to 7.9 percent, while adjusted gross margin decreased to 9.2 percent.
Other financial highlights for the Q3 2025
The document states that Fresh Del Monte's operating loss for the period was $21.8 million. The decrease was primarily driven by higher asset impairment and other charges. These relate to underperforming banana farms in the Philippines, the company says, as well as impairment charges associated with the planned divestiture of Mann Packing, and lower gross profit in the current period.
Finally, adjusted operating income for Q3 was $39.7 million. The figure excludes the operating losses associated with the company’s Mann Packing business, as well as the above-mentioned impairments and gains on the disposal of property, plant, and equipment.
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