NYSE$FDP

Fresh Del Monte Produce Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results for the first quarter ended March 31, 2023.

Fresh Del Monte Produce reported a decrease in net sales by 1% compared to the prior-year period, but experienced strong gross profit and margin due to higher per unit selling prices and lower distribution costs. The company finalized the sale of three underutilized properties as part of its asset optimization plan.

  • Net sales decreased by 1% due to lower per unit selling prices of avocados and lower volumes in the fresh and value-added products segment.
  • Gross profit increased due to higher per unit selling prices and lower distribution costs.
  • Operating income increased primarily due to the gain on sale of underutilized assets and higher gross profit.
  • The Board of Directors declared a quarterly cash dividend of $0.20 per share.

Headline financials

Total Revenue

$1.13B

Previous: $1.14B-0.7%
EPS (adj)

$0.55

Previous: $0.55+0.0%
Gross Margin

8.6%

No prior period
Dividend Per Share

$0.15

Previous: $0.15+0.0%
Free Cash Flow

$39M

Previous: $25.8M+51.2%
Net Income

$39M

Previous: $25.8M+51.2%
Operating Income

$74.5M

Previous: $39.8M+87.2%
Gross Profit

$97M

Previous: $89.8M+8.0%
Cash & Equivalents

$35.7M

Previous: $25.3M+41.1%
Total Assets

$3.44B

Previous: $3.5B-1.7%
Stock-Based Comp

$2.3M

Previous: $1.7M+35.3%

Revenue & EPS history

Fresh Del Monte · Revenue · Quarterly

$1.13B

Q1 2023-0.7%vs Q1 2022
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Fresh Del Monte · $1.13B total across 3 segments · Q1 2023

  • Fresh & Value-Added
    $643M-4.4%
  • Banana
    $425M+4.7%
  • Other Products & Services
    $60M+3.1%

Forward guidance

The press release and earnings call contain forward-looking statements regarding the Company’s plans and expectations for future performance, including the Company’s commitment to efficiency and optimization of resources and the impact on its results of operations.

Tailwinds

  • Commitment to efficiency and optimization of resources and the impact on its results of operations
  • Strategies and goals for evaluation of its product lines and assets and the impacts to profitability
  • Focus on flexibility and identification of market opportunities and the impact to shareholder value
  • Focus on optimizing the use of capital and operating assets
  • Expansion of its logistics business, the strategies for expansion and the impacts of such strategies

Headwinds

  • Macroeconomic factors, including inflation, interest rates and foreign exchange rates
  • The Company’s ability to successfully develop and expand its logistics business
  • Trends and other factors affecting consumer preferences, including whether consumers are receptive to the ideas and innovations made by the Company
  • Its inability to accurately identify underperforming product lines and assets
  • Other factors outside the Company’s control that impact its and other growers’ crop quality and yields

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.5%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-2.8%

Avg return

30 days after

34%

23 / 67 earnings

Positive

+19.8%

Q1 2021

Best reaction

-21.3%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-8.5%-27.0%
Q4 2025+4.5%+3.4%-1.2%
Q3 2025-0.2%+4.6%+5.2%
Q1 2025-0.9%-1.8%-2.7%
Q4 2024-3.0%-1.3%-4.2%
Q3 2024+8.8%+14.5%+16.0%
Q2 2024+8.9%+7.2%+16.7%
Q1 2024-5.4%-6.1%-9.9%
Q4 2023-2.7%+1.9%+8.8%
Q3 2023-9.0%-6.0%-7.1%
Q2 2023+4.6%+7.7%+0.1%
Q1 2023-7.2%-3.8%-6.1%
Q4 2022+7.7%+8.5%+4.1%
Q3 2022+2.5%+7.1%+4.7%
Q2 2022-4.0%-5.8%-10.3%
Q1 2022-5.5%-3.6%-2.2%
Q4 2021-9.9%-8.1%-5.8%
Q3 2021-14.6%-13.7%-27.5%
Q2 2021-1.5%+1.3%+3.6%
Q1 2021+19.8%+17.7%+21.4%
Q4 2020-7.7%-5.1%+5.4%
Q3 2020-8.8%-9.9%+4.0%
Q2 2020-1.3%-1.9%+0.3%
Q1 2020-18.8%-28.0%-29.1%
Q4 2019-10.7%-14.7%+0.9%
Q3 2019+10.8%+12.6%+14.6%
Q2 2019+11.3%+7.6%-6.0%
Q1 2019+3.5%-0.1%-11.5%
Q4 2018-21.3%-20.9%-22.9%
Q3 2018+3.0%+2.5%+3.4%
Q2 2018-8.4%-7.4%-7.8%
Q1 2018+0.5%-1.2%-8.6%
Q4 2017-0.5%+2.2%-3.5%
Q3 2017-9.8%-4.7%-0.2%
Q2 2017-3.3%-2.9%-8.7%
Q1 2017-14.0%-11.5%-16.1%
Q4 2016-3.3%-1.2%-0.4%
Q3 2016+7.0%+0.7%-3.9%
Q2 2016+6.2%+7.1%+3.6%
Q1 2016+8.5%
Q4 2015-3.7%
Q3 2015+6.6%
Q2 2015+8.6%
Q1 2015-7.6%
Q4 2014-1.9%
Q3 2014+5.4%
Q2 2014+1.7%
Q1 2014+8.8%
Q4 2013-4.6%
Q3 2013-3.1%
Q2 2013+0.1%
Q1 2013-9.7%
Q4 2012-2.9%
Q3 2012-1.6%
Q2 2012-0.2%
Q1 2012+1.5%
Q4 2011-10.1%
Q4 2008-10.1%
Q3 2011-3.1%
Q2 2011-3.9%
Q1 2011+1.5%
Q4 2010-5.0%
Q3 2009+0.0%
Q3 2010+0.0%
Q2 2010-0.1%
Q1 2010-0.1%
Q2 2009-0.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro