NYSE$FDP

Fresh Del Monte Produce Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Fresh Del Monte's financial performance was reported for Q3 2021, revealing increased net sales but decreased gross profit and net income compared to the prior-year period.

Fresh Del Monte Produce Inc. reported a slight increase in net sales for Q3 2021, reaching $1,004.8 million compared to $989.7 million in the prior-year period. However, the company experienced a decrease in gross profit, operating income, and net income due to inflationary pressures, strained transportation capacity, and labor shortages.

  • Net sales for Q3 2021 increased to $1,004.8 million, up from $989.7 million in the prior-year period.
  • Gross profit for Q3 2021 decreased to $48.9 million, compared to $67.3 million in the prior-year period.
  • Net income for Q3 2021 was $1.3 million, a significant decrease from $17.4 million in the prior-year period.
  • The company faced challenges due to inflationary pressures, transportation constraints, and labor shortages, impacting margins and profitability.

Headline financials

Total Revenue

$1B

Previous: $990M+1.5%
EPS (adj)

$0.01

Previous: $0.35-97.1%
Gross Margin

4.9%

No prior period
Dividend Per Share

$0.15

Previous: $0.10+50.0%
Free Cash Flow

$1.3M

Previous: $17.4M-92.5%
Net Income

$1.3M

Previous: $17.4M-92.5%
Operating Income

$1.3M

Previous: $26.6M-95.1%
Gross Profit

$48.9M

Previous: $67.3M-27.3%
Cash & Equivalents

$19M

Previous: $14M+35.7%
Total Assets

$3.39B

Previous: $3.28B+3.2%
Stock-Based Comp

$2.1M

Previous: $1.5M+40.0%

Revenue & EPS history

Fresh Del Monte · Revenue · Quarterly

$1B

Q3 2021+1.5%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Fresh Del Monte · $1B total across 3 segments · Q3 2021

  • Fresh & Value-Added
    $601M+0.1%
  • Banana
    $365M+1.0%
  • Other Products & Services
    $38.3M+40.3%

Forward guidance

The company is focused on long-term growth by managing its business and providing reliable, quality service to its customers. Recent capital investments in automation, leveraging vertical integration, optimization, and product rationalization are expected to strengthen the company's position.

Tailwinds

  • Capital investments in automation of production facilities.
  • Further leveraging of vertical integration.
  • Optimization and consolidation of operations.
  • Product rationalization.
  • Addition of 6 new refrigerated container vessels to the fleet.

Headwinds

  • Challenging macroeconomic environment.
  • Inflationary and cost pressures across the supply chain.
  • Significantly higher input costs.
  • Labor shortages.
  • Seasonality impacting the second half of the year.

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 Q3 2021

Historical avgQ3 2021

-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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