Fresh Del Monte Produce Inc · Q2 2022 earnings

Briefing

Delivered strong net sales amidst unprecedented cost pressures.

Fresh Del Monte Produce Inc. reported a 6% increase in net sales for Q2 2022, driven by necessary pricing actions across most product categories. Despite facing inflationary, supply chain, and logistical headwinds that increased the cost of product sold, the company generated positive earnings and maintained its debt balance while continuing dividend payouts.

• Net sales increased by $70.3 million, or 6%, compared to the prior-year period, driven by inflation-justified price increases.
• Gross profit decreased to $80.7 million compared to $110.0 million in the prior-year period due to higher costs across the board, including packaging materials, fertilizers, ocean and inland freight, fuel, and labor.
• Operating income decreased to $34.3 million compared to $59.3 million in the prior-year period, primarily due to lower gross profit, partially offset by lower administrative and advertising expenses.
• The Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on September 9, 2022, to shareholders of record on August 17, 2022.

Headline financials

Revenue & EPS history

The company plans to drive profitable sales by focusing on its sustainable growth strategy and delivering against its key elements, including organic expansion, product innovation, investments in technology, best-in-class customer relationships and sustainability.