Fresh Del Monte navigates "complex environment" in Q1 2026 with portfolio realignment

Global produce giant Fresh Del Monte released its financial results for the first quarter of 2026, reporting a period of significant strategic transition characterized by major acquisitions and portfolio optimization. 

The company posted net sales of approximately $1 billion, a slight five percent decrease from 2025, driven primarily by the divestiture of the Mann Packing business in late 2025 and lower sales in the avocado category. 

Likewise, Fresh Del Monte reported a three percent year-on-year drop in gross profits, which becomes a more significant 16 percent decrease when compared to Q4 2025. The firm explained the slight contraction to lower prices in the other products and services category, including poultry and meat. 

In a press release, Fresh Del Monte’s Chairman and CEO, Mohammad Abu-Ghazaleh, expressed satisfaction with the company’s Q1 2026 results, calling them the reflection of “disciplined execution across a complex operating environment.” 

He explained that the quarter included the initial contribution following the closing of the Del Monte Foods acquisition, which expanded the company’s portfolio across the supply chain. 

“We are encouraged by the initial performance of the Del Monte Foods business in its first week of ownership and remain focused on building on this momentum as we continue to scale the business and strengthen our overall platform,” he added.

Fresh Del Monte's strategic acquisition and segment realignment

According to the company, the most defining highlight of the quarter was the completion of the Del Monte Foods asset acquisition in March 2026. 

This move led to the creation of a standalone “Prepared Foods” segment, which contributed $82.5 million in net sales despite being in its early stages.

Fresh Del Monte said Q1 results reflect the benefits of the firm’s decision to exit non-core assets, specifically the divestiture of Mann Packing in Q4 2025. 

Although this move contributed to the overall decrease in net sales, it significantly improved gross margins in the Fresh and Value-Added Products segment. By removing a low-margin business line, the company reported a segment gross margin of nearly 11 percent, up from previous years. 

Operational headwinds: Avocados and geopolitics

Fresh Del Monte reported a challenging landscape in its avocado and banana lines. An industry-wide oversupply of avocados led to lower per-unit selling prices, the company says, which weighed heavily on the Fresh and Value-Added segment. 

Furthermore, higher shipping costs resulting from disruptions in the Strait of Hormuz, combined with $20 million in one-time asset impairment charges related to the DelMonte Foods acquisition, led to a net income of $10 million—a nearly 68 percent year-on-year decrease compared to the same period last year. 

Despite these pressures, Fresh Del Monte said, the company remained focused on its core categories, leveraging higher per-unit prices for pineapples and bananas to help stabilize the bottom line.

*All images courtesy of Fresh Del Monte. 

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