NYSE$FDP

Fresh Del Monte Produce Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong operating results with net income more than doubled, and gross profit and margin increased.

Fresh Del Monte Produce reported net sales of $1,180.5 million for Q2 2023, compared to $1,211.9 million in the prior-year period. Net income more than doubled, and gross profit and gross margin increased substantially. The company's strategic efforts, including asset optimization, strategic partnerships, and product innovation, are guiding its decision-making process.

  • Net income more than doubled compared to the prior-year period.
  • Gross profit and gross margin increased substantially year-over-year.
  • Net sales variance was primarily driven by the fresh and value-added products segment.
  • Higher net sales in the banana segment, driven by both per unit pricing and volume, partially offset net sales decrease.

Headline financials

Total Revenue

$1.18B

Previous: $1.21B-2.6%
EPS (adj)

$0.96

Previous: $0.43+123.3%
Gross Margin

9.9%

Previous: 6.7%+47.8%
Dividend Per Share

$0.20

Previous: $0.15+33.3%
Free Cash Flow

$47.7M

Previous: $21.2M+125.0%
Net Income

$47.7M

Previous: $21.2M+125.0%
Operating Income

$72.1M

Previous: $34.3M+110.2%
Gross Profit

$117M

Previous: $80.7M+44.7%
Cash & Equivalents

$43.8M

Previous: $15.6M+180.8%
Total Assets

$3.37B

Previous: $3.4B-0.7%
Stock-Based Comp

$2.8M

Previous: $1.1M+154.5%

Revenue & EPS history

Fresh Del Monte · Revenue · Quarterly

$1.18B

Q2 2023-2.6%vs Q2 2022
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Fresh Del Monte · $1.18B total across 3 segments · Q2 2023

  • Fresh & Value-Added
    $678M-7.5%
  • Banana
    $449M+6.5%
  • Other Products & Services
    $54.1M-6.6%

Forward guidance

This press release and the related earnings call contain certain forward-looking statements regarding the intent, beliefs or current expectations of the Company.

Tailwinds

  • commitment to asset optimization, strategic partnerships and product innovations and the impact on the Company’s results of operations
  • expectations regarding the ability to identify, sell or leverage underutilized assets, including the related impacts to operational efficiency
  • anticipated demand for the Company’s core products
  • improvements in the Company’s avocado business and pricing and technology developments
  • climate-related projects, including the Company’s Brighter World Tomorrow™ vision

Headwinds

  • macroeconomic factors, including inflation, interest rates and foreign exchange rates
  • the Company’s ability to leverage technologies
  • 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 Q2 2023

Historical avgQ2 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%

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