NYSE$FDP

Fresh Del Monte Produce Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Fresh Del Monte reported strong margin improvement in the Fresh and Value-Added Products segment and a decrease in debt, signaling strengthened financial stability.

Fresh Del Monte Produce Inc. reported a decrease in net sales due to lower banana sales, but this was partially offset by increased sales in the fresh and value-added products segment. The company saw a slight decrease in gross profit and operating income. FDP net income increased compared to the prior-year period.

  • Net sales decreased to $1,139.7 million compared to $1,180.5 million in the prior-year period.
  • Gross profit decreased to $113.2 million compared to $116.8 million in the prior-year period.
  • Operating income decreased to $68.2 million compared to $72.1 million in the prior-year period.
  • Long-term debt decreased to $285.0 million from $400.5 million in the prior-year.

Headline financials

Total Revenue

$1.14B

Previous: $1.18B-3.5%
EPS

$1.12

Previous: $0.96+16.7%
Gross Margin

9.9%

Previous: 9.9%+0.0%
Adjusted Gross Profit

$114M

No prior period
Adjusted Operating Income

$64.5M

No prior period
Adjusted Net Income

$50.9M

No prior period
EBITDA

$92.7M

No prior period
Adjusted EBITDA

$89M

No prior period
Dividend Per Share

$0.25

Previous: $0.20+25.0%
Capital Expenditures

-$8M

No prior period
Free Cash Flow

$53.6M

Previous: $47.7M+12.4%
Net Income

$53.6M

Previous: $47.7M+12.4%
Operating Income

$68.2M

Previous: $72.1M-5.4%
Gross Profit

$113M

Previous: $117M-3.1%
Cash & Equivalents

$37.8M

Previous: $43.8M-13.7%
Total Assets

$3.11B

Previous: $3.37B-7.8%
Stock-Based Comp

$2.2M

Previous: $2.8M-21.4%

Revenue & EPS history

Fresh Del Monte · Revenue · Quarterly

$1.14B

Q2 2024-3.5%vs Q2 2023
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Fresh Del Monte · $1B total across 3 segments · Q3 2023

  • Fresh & Value-Added
    $574M-4.3%
  • Banana
    $385M-1.0%
  • Other Products & Services
    $44.4M-32.0%

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

  • The Company’s focus on operational excellence, cost discipline and strategic capital allocation to improve profitability
  • Its ability to generate value for its shareholders, including through focusing on its strengths in pineapple, fresh-cut cut fruit, avocados and value-added products
  • Our expectations regarding the demand and volume growth projection of our pineapple varieties and avocado and avocado-related products
  • Our ability to reduce operational costs and improve margins in our fresh and value-added segment
  • Our expectations regarding customer growth and the expansion and diversification of our product offerings

Headwinds

  • Ongoing elevated commodity and supply chain costs, including costs of raw materials, packaging materials, labor, energy, fuel and transportation
  • The Company’s ability to successfully execute on its strategic growth plans, including the use of AI, biofertilizers and other technology to effectively manage costs and pricing
  • The outcome of strategic alternatives with respect to the Mann Packing operation, and any impact on our business and results of operations
  • The impact of foreign currency fluctuations, including the effectiveness of our hedging activities
  • The impact of asset impairment or other charges, including those associated with exit activities, crop or facility damage or otherwise

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 2024

Historical avgQ2 2024

-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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