Del Monte Corporation

Good day everyone and welcome to Fresh Del Monte Produce's second quarter 2023 earnings conference call. Today's conference call is being broadcast live over the internet and is also being recorded for playback purposes. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press the star one. For opening remarks and introductions, I would like to turn today's call over to Vice President, Corporate Communications with Fresh Del Monte Produce, Claudia Poe. Please go ahead, Ms. Poe.

Thank you, Rob. Good morning, everyone, and thank you for joining our second quarter 2023 conference call. As Rob mentioned, I am Claudia Poe, Vice President, Corporate Communications with Fresh Del Monte Produce. Joining me in today's discussion are Muhammad Upugazali, Chairman and Chief Executive Officer, and Monica Vicente, Senior Vice President and Chief Financial Officer. I hope that you've had a chance to review the press release that was issued earlier this morning via Business Wire. You may also visit the company's IR website at investorrelations.freshlamonte.com to access today's earnings materials and to register for future distributions. This conference call is being webcast live on our website and will be available for replay after this call. Please note that our press release and our call today include non-GAAP measures. Reconciliations of these non-GAAP financial measures are set forth in the press release and earnings presentation, which is available on our website. I would like to remind you that much of the information we will be speaking to today, including the answers we give in response to your questions, may include forward-looking statements within the provisions of the federal securities laws, safe harbor. In today's press release and in our SEC filings, We detail material risks that may cause our future results to differ from these forward-looking statements. Our statements are as of today, August 2nd, and we have no obligation to update any forward-looking statements we may make. During the call, we will provide a business update along with an overview of our second quarter 2023 financial results, followed by a question and answer session. With that, I am pleased to turn today's call over to Mr. Bugazali.

Thank you, Claudia, and good morning, everyone. We are truly pleased with our performance for the second quarter of 2023. Net income more than doubled compared with the prior year period. Gross profit and gross margin increased substantially when compared with the same period last year. And we further reduced our debt. In the second quarter, we sold our plastic business in Chile as well as either lands in South and Central America as part of our commitment to optimize our asset base. We are continuously looking for areas of opportunity within our portfolio to maximize our return on investment. Our core products, banana and pineapple, performed very well in the second quarter, and we continue to see strong demand for our honey glow and pink glow pineapple varieties, which contributed to the margin improvement in the fresh and value-added product segment. Our avocado program is also growing. We have expanded our customer base and increased sales volume, and we have also diversified our sourcing origins to include Colombia, Dominican Republic, and Peru. We continue to refine our pricing and sourcing technology for avocados. We believe this technology is the missing link that will help further elevate our avocado business. As you know, avocado pricing has been historically hard to predict because of the ever-changing market and weather conditions in Mexico. In recent months, we have all witnessed record heat and changing weather patterns. These climate issues are not going to end and we are seeing these typical weather patterns at the farm level as well. We have embarked on an all-out effort to find solutions for some of these challenges as part of our continuous focus on our Del Monte brand commitment of quality, freshness, and reliability. We have several climate-related projects in the works that get to the root of these new challenges. Our scientists and researchers are working diligently to improve and uncover farming methods to help optimize our yields while preserving and protecting our growing lands. We are focused on ways in which we can leverage technology like drones and smart farming to continue to move towards a circular economy on our farms. As a global agricultural company, we understand the importance of focusing on the basics, water, air, trees, and soil, and protecting the environment wherever we can. It is essential for human survival. It is essential to our survival, and as an industry leader, we believe it is our duty to set an example. We believe we are making progress for our vision for a brighter tomorrow. work tomorrow. Recently, Fresh Talmonte was recognized for its work in sustainability by two different leading sustainability organizations. We were awarded a 2023 SEAL Business Sustainability Award for our reduction of greenhouse gas emissions across the agricultural value chain. And we have been shortlisted for a World Sustainability Award in the new launch category for the del monte zero pineapple which is our certified carbon natural neutral pineapple that offsets emissions from farm to market the del monte zero pineapple is just one of several examples of how innovation within our pineapple segment is creating value for our consumers and our business while operating sustainably Demand for our Pink Glow Pineapple has been outpacing supply with sales more than doubling versus the same period last year. After years of research and development, we were able to create a Pink Pineapple that only we can produce. Similarly, the Honey Glow Pineapple, our premium product that has a unique golden color and extra sweet taste continues to increase in demand sales In North America alone, sales were up more than 50% in the second quarter. Both Pink Glow and Honey Glow are fresh Del Monte's innovations, and their market acceptance and interest show how crucial innovation is in the pineapple category. As everybody knows, we are leaders in this space, and our successful innovations are paying off. Sustainability and innovation go hand in hand with our clearly defined five-year roadmap. Our vision is to become a technology-driven, sustainable company by leveraging our strength in agriculture and supply chain. We plan on doing this through innovation, exceptional customer service, asset optimization, strategic partnerships, and research and development. coupled with our extensive industry knowledge and deep data library. We understand that achieving this transformational vision will take time. We, out of all companies, know very well that the day you plant the seed is not the day you eat the fruit. We are laying the groundwork for our transformational vision as we speak. Lastly, before I pass the call over to Monica, this week we announced a new partnership with Lunchables and Kraft Heinz, launching Lunchables with Fresh Fruit, which will feature Del Monte fruit prominently in select Lunchable meal kits. We are currently in the early testing stages of Lunchables with Fresh Fruit, selling to retailers in the south central region of the U.S. with the goal of further expansion into the U.S. markets. We believe there is a significant potential in partnering with a brand like Kraft Heinz. With more than 30 years in the market, Kraft Heinz is a leader in the kids' meal combos category. On the consumer front, we see this as a great opportunity to change children's perspectives around fruits and vegetables. ideally helping to make fruit and vegetable consumption second nature to younger generations by showing up front and center in a product they already know and enjoy. This partnership aligns closely with our mission to inspire healthy lifestyles and provide wholesome and convenient products to everyone. At this point, I will turn the call to Monica to talk about the second quarter financial results. Monica.