NYSE$FDP

Fresh Del Monte Produce Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Fresh Del Monte experienced strong net sales and margins, marking the best-performing fourth quarter in recent history.

Fresh Del Monte Produce Inc. reported a strong fourth quarter and full fiscal year 2022, driven by increased net sales and improved gross margins. The company's focus on flexibility, cost control, and customer relationships contributed to a stronger financial position compared to the previous year.

  • Net sales for the fourth quarter of 2022 increased by 2% compared to the prior-year period, driven by inflation-justified per unit price increases.
  • Gross profit for the fourth quarter of 2022 increased significantly to $81.7 million, compared to $39.8 million in the prior-year period, due to higher per unit selling prices across all segments.
  • Operating income for the fourth quarter of 2022 was $31.2 million, a substantial improvement from the operating loss of $9.2 million in the prior-year period.
  • FDP net income for the fourth quarter of 2022 was $18.3 million, compared to a net loss of $11.2 million in the prior-year period.

Headline financials

Total Revenue

$1.04B

Previous: $1.02B+2.3%
EPS (adj)

$0.45

Previous: -$0.18+350.0%
Gross Margin

7.9%

Previous: 3.9%+102.6%
Net Income

$19.4M

Previous: -$10.7M+281.3%
Operating Income

$31.2M

Previous: -$9.2M+439.1%
Gross Profit

$81.7M

Previous: $39.8M+105.3%
Cash & Equivalents

$17.2M

Previous: $16.1M+6.8%
Total Assets

$3.46B

Previous: $3.4B+1.8%
Stock-Based Comp

$2M

Previous: $1.8M+11.1%

Revenue & EPS history

Fresh Del Monte · Revenue · Quarterly

$1.04B

Q4 2022+2.3%vs Q4 2021
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

Fresh Del Monte · $1.04B total across 3 segments · Q4 2022

  • Fresh & Value-Added
    $577M-3.6%
  • Banana
    $404M+8.9%
  • Other Products & Services
    $59.3M+24.3%

Forward guidance

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

Tailwinds

  • Company's commitment to remaining flexible and agile.
  • Company's commitment to controlling costs.
  • Company's commitment to leveraging its assets.
  • Company's commitment to optimizing customer relationships.
  • Company's intent to focus on strengthening its relationships with customers to work toward profitable incremental sales and expansion of its product line

Headwinds

  • Macroeconomic factors, including inflation and governmental actions such as increased interest rates taken to combat inflation, on its business, suppliers, customers and consumers
  • Company’s ability to successfully execute on its strategic growth plans, including the use of AI and other technology to effectively manage costs and pricing
  • Company’s ability to successfully develop and expand its logistics business
  • Trends and other factors affecting consumer preferences or consumer
  • Other factors outside the Company’s control that impact its and other growers’ crop quality and yields, such as crop disease, severe weather conditions, disruptions or issues that impact our production facilities or complex logistics network; and the availability of sufficient labor during peak growing and harvesting seasons

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 Q4 2022

Historical avgQ4 2022

-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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