Fresh Del Monte Pivots, Trims Portfolio for Stronger 2025 Profits

CORAL GABLES, Fla. – February 18, 2026 – Fresh Del Monte Produce Inc. demonstrated the fruits of a significant strategic overhaul, reporting robust financial results for the fourth quarter and full fiscal year 2025. The global produce giant posted higher sales and profits, underpinned by a disciplined strategy of divesting non-core assets, reducing debt, and venturing into new, high-margin markets, signaling a clear pivot in its long-term growth plan.

For the full fiscal year ended December 26, 2025, the company reported net sales of $4.32 billion, a slight increase from the previous year. More impressively, adjusted earnings per diluted share soared to $3.68, a substantial jump from $3.01 in 2024. This performance was bolstered by a significant reduction in long-term debt, which fell to $173.0 million, and a healthy net cash flow from operating activities of $245.1 million.

"Fiscal 2025 reflected solid execution across the business, supported by pricing discipline, continued demand for our core categories, and a strong focus on cash flow," said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer, in the company’s official announcement. "We closed the year with improved financial flexibility, reduced debt, and continued investment in our operations to support long-term performance."

A Strategic Portfolio Overhaul

A cornerstone of Fresh Del Monte's 2025 strategy was the decisive move to streamline its portfolio. The company completed the divestiture of its Mann Packing business during the fourth quarter, a move aimed at exiting the lower-margin fresh-cut vegetable sector to focus on its core strengths. This sale, which followed the 2024 divestiture of Mann's Fresh Leaf Farms subsidiary, allows the company to concentrate resources on more profitable ventures and improve its overall margin profile.

While the divestiture led to a reported decrease in sales volume for the fresh and value-added products segment, the strategic trade-off appears to be paying dividends. In a contrasting move that highlights its new direction, Fresh Del Monte acquired a majority stake in Avolio, a Ugandan producer of avocado oil, in early 2025. This acquisition marks the company's entry into the booming specialty ingredients market, which is projected to grow at a compound annual rate of 8-10%.

The investment in Avolio is not just a diversification play; it's a key part of the company's sustainability and circular economy goals. The strategy involves converting avocados that are not suitable for sale as whole fruit into valuable avocado oil, thereby reducing food waste while creating a new revenue stream. This forward-thinking approach demonstrates a shift from being solely a fresh produce distributor to becoming a more integrated food and ingredients enterprise.

Battling Headwinds in the Banana Business

Despite the positive overall results, the company's banana segment faced significant operational challenges throughout the year. The press release noted higher per-unit production and procurement costs, which weighed on the segment's gross margin. These cost pressures stem from persistent agricultural and environmental issues plaguing key growing regions.

Industry-wide, banana producers are grappling with the devastating effects of Black Sigatoka, a fungal disease that thrives in wet conditions and can cripple a plant's productivity. In Costa Rica, a major sourcing region for Fresh Del Monte, the disease has contributed to a significant drop in national banana production. Compounding this is the spread of the incurable soil-borne fungus Fusarium Wilt Tropical Race 4 (TR4) across Latin America, which poses an existential threat to the global banana supply chain.

Fresh Del Monte has responded to these headwinds with a multi-pronged approach. The company has successfully implemented pricing adjustments, including tariff-related increases in North America, which helped drive higher net sales and offset some of the rising costs. Operationally, it is intensifying biosecurity measures and investing in research and development, collaborating with scientific partners to cultivate new, disease-resistant banana varieties. These efforts reflect a proactive stance in a battle against nature that is critical for the long-term stability of one of its most iconic products.

Diversifying Revenue Beyond the Orchard

Another bright spot in the earnings report was the performance of the "Other Products and Services" segment, which saw a notable increase in net sales to $55.2 million in the fourth quarter. A primary driver of this growth was the company's third-party ocean freight business.

In 2022, Fresh Del Monte formally spun off this service into a distinct brand, Network Shipping (NWS), to leverage its fleet of 13 cargo vessels and offer tailored logistics solutions to a wider market. Touting a near-perfect on-time delivery rate, NWS is carving out a niche in reliable cold-chain logistics. This strategic use of existing assets creates an additional, diversified revenue stream that is less dependent on agricultural cycles.

Further enhancing this segment's efficiency and sustainability, the company has partnered with global logistics provider CMA CGM to transition its banana and pineapple exports to Northeast Asia from traditional breakbulk vessels to modern containerized shipping. This move is expected to improve product quality through better cold chain management, increase dependability, and reduce the company's carbon footprint, aligning its operational goals with its corporate sustainability commitments.

Fortifying the Balance Sheet and Rewarding Shareholders

The strong financial performance and strategic asset management in 2025 have significantly fortified Fresh Del Monte's balance sheet, providing the flexibility to reward shareholders and invest in future growth. The company's disciplined approach to capital allocation was evident in its actions throughout the year.

Reflecting confidence in its financial position, the Board of Directors declared a quarterly cash dividend of $0.30 per share, an increase from the previous rate of $0.25. This move signals a strong commitment to providing direct returns to its investors.

In addition, the company was active in its share repurchase program. During the fourth quarter alone, it bought back 410,409 shares for $15.0 million. With $120.2 million still available under its current repurchase authorization, Fresh Del Monte has ample capacity to continue creating shareholder value through buybacks. This balanced approach of deleveraging, investing in strategic growth, and returning capital to shareholders positions the company for sustained performance as it moves into 2026.