NYSE$FDP

Fresh Del Monte Produce Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and the full fiscal year ended December 29, 2023.

Fresh Del Monte Produce reported a decrease in net sales for Q4 2023 to $1,008.6 million compared to $1,040.0 million in the prior-year period, driven by lower net sales of banana and other products and services segments. The company faced an operating loss of $(113.4) million, impacted by a $133.8 million non-cash asset impairment charge. However, the company increased the quarterly dividend by 25% for the second consecutive year and reduced long-term debt by $140 million.

  • Net sales for the fourth quarter of 2023 were $1,008.6 million, a decrease from $1,040.0 million in the prior-year period.
  • Gross profit for the fourth quarter of 2023 was $62.5 million, compared to $81.7 million in the prior-year period.
  • Operating loss for the fourth quarter of 2023 was $(113.4) million, compared to operating income of $31.2 million in the prior-year period.
  • The Company's Board of Directors declared an increase to the quarterly cash dividend to $0.25 per share.

Headline financials

Total Revenue

$1.01B

Previous: $1.04B-3.2%
EPS (adj)

$0.25

Previous: $0.45-44.4%
Gross Margin

6.2%

Previous: 7.9%-21.5%
Capital Expenditures

-$17M

No prior period
Net Income

-$107M

Previous: $19.4M-649.0%
Operating Income

-$113M

Previous: $31.2M-463.5%
Gross Profit

$62.5M

Previous: $81.7M-23.5%
Stock-Based Comp

$2.3M

Previous: $2M+15.0%

Revenue & EPS history

Fresh Del Monte · Revenue · Quarterly

$1.01B

Q4 2023-3.2%vs Q4 2022
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 company intends to focus on continuous innovation, commercializing its assets through strategic partnerships, investing in organic growth, increasing the mix of high margin products and working toward a circular economy and expects to control costs in 2024.

Tailwinds

  • Intent to focus on continuous innovation
  • Commercializing its assets through strategic partnerships
  • Investing in organic growth
  • Increasing the mix of high margin products
  • Working toward a circular economy

Headwinds

  • Ongoing elevated commodity and supply chain costs
  • Impact of foreign currency fluctuations
  • Impact of asset impairment or other charges
  • Impact of ongoing conflict in the Middle East on supply chain logistics
  • 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 Q4 2023

Historical avgQ4 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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