Food and Beverage Business

Fresh Del Monte considers strategies for Mann Packaging division

Fresh Del Monte considers strategies for Mann Packaging division Fresh Del Monte Produce Food and Beverage Business

Fresh Del Monte, a US-based produce group, is currently exploring new options for its fresh vegetables unit Mann Packaging. According to CEO Mohammad Abu-Ghazaleh, the company is “assessing strategic alternatives for this business.” The group acquired Mann Packaging in 2018 for $361m, and recently booked a non-cash impairment of $131.2m in its fiscal fourth quarter, primarily related to Mann Packaging.

In a statement accompanying Fresh Del Monte’s fourth-quarter and full-year results, Abu-Ghazaleh mentioned that the company will focus on improving profitability through innovations, strategic partnerships, and cost control in the upcoming fiscal year. Despite facing a 3.1% decline in fourth-quarter net sales to $1.01bn and a 2.7% decrease in full-year net sales to $4.3bn, Fresh Del Monte remains committed to enhancing its business operations.

The decline in sales was attributed to low sales of bananas and other products and services segments. However, the fresh and value-added products segment experienced a 1% rise in net sales in the fourth quarter, driven by higher demand for pineapple brands Honeyglow and Pinkglow. This increase was partially offset by lower sales in vegetables and other prepared foods due to decreased selling prices.

Fresh Del Monte reported a fourth-quarter operating loss of $113.4m, compared to an operating income of $31.2m in the previous year. Adjusted operating income was $12m, down from $34.2m in the fourth quarter of 2023. The company also recorded a net loss of $106.4m in the fourth quarter, with adjusted net income of $11.8m.