NYSE$FDP

Fresh Del Monte Produce Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported strong performance driven by strategic focus on high-margin, value-added products and commitment to long-term profitability.

Fresh Del Monte reported a net sales increase driven by higher net sales in the fresh and value-added product segment. Gross profit and operating income also increased, primarily driven by higher sales volume and per unit selling prices.

  • Net sales increased due to higher sales in the fresh and value-added product segment.
  • Gross profit increased driven by higher sales volume and per unit selling prices.
  • Operating income increased primarily due to higher gross profit and gain on the sale of property, plant and equipment.
  • Decision on Mann Packing finalized to enhance profitability and position for growth.

Headline financials

Total Revenue

$1.02B

Previous: $1B+1.6%
EPS

$0.88

Previous: $0.35+151.4%
Gross Margin

9.2%

Previous: 7.4%+24.3%
Adjusted Gross Profit

$97.8M

No prior period
Adjusted Operating Income

$51.7M

No prior period
Adjusted Net Income

$42.5M

No prior period
EBITDA

$75.7M

No prior period
Adjusted EBITDA

$71.1M

No prior period
EBITDA Margin

7.4%

No prior period
Adjusted EBITDA Margin

7.5%

No prior period
Adjusted Net Income Margin

4.5%

No prior period
Dividend Per Share

$0.25

Previous: $0.20+25.0%
Capital Expenditures

-$13.4M

Previous: -$21.8M+38.5%
Free Cash Flow

$42.1M

Previous: $8.4M+401.2%
Net Income

$42.1M

Previous: $8.4M+401.2%
Operating Income

$53.9M

Previous: $25.4M+112.2%
Gross Profit

$93.8M

Previous: $74.4M+26.1%
Cash & Equivalents

$50.8M

Previous: $77.9M-34.8%
Total Assets

$3.16B

Previous: $3.35B-5.7%
Stock-Based Comp

$2M

Previous: $2.5M-20.0%

Revenue & EPS history

Fresh Del Monte · Revenue · Quarterly

$1.02B

Q3 2024+1.6%vs Q3 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

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

Tailwinds

  • Company’s focus on high-margin, value-added products
  • Ability to streamline operations and the impact that may have on our profitability and future growth
  • Ability to generate value for shareholders, including through focusing on its strengths in pineapple, fresh-cut fruit, avocados and value-added products
  • Expectations regarding our ability to implement strategic alternatives for streamlining our Mann Packing business, and any impact on our profitability and financial condition
  • Ongoing commitment to future growth, operational excellence and meeting evolving customer and consumer demands

Headwinds

  • Ongoing elevated commodity and supply chain costs, including costs of raw materials, packaging materials, labor, energy, fuel and transportation
  • 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
  • Outcome and anticipated timing of strategic alternatives with respect to the Mann Packing operation, and any impact on our business and results of operations
  • Impact of foreign currency fluctuations, including the effectiveness of our hedging activities
  • 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 Q3 2024

Historical avgQ3 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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