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Mar 27, 2020
Fresh Del Monte Q1 2020 Earnings Report
Financial results for the first quarter of 2020 were reported.
Key Takeaways
Fresh Del Monte Produce Inc. reported a decrease in net sales and earnings per diluted share for the first quarter of 2020, impacted by the COVID-19 pandemic and a voluntary product recall. The company's global presence, diverse product portfolio, and efficient operations allowed it to adapt to the pandemic, but near-term demand in foodservice and higher-priced products remains challenging.
Earnings per diluted share were $0.27, compared to $0.74 in Q1 2019.
Adjusted earnings per diluted share were $0.34, compared to $0.46 in Q1 2019.
Net sales decreased to $1,118.0 million from $1,154.2 million in Q1 2019.
Gross profit decreased to $68.5 million from $95.1 million in Q1 2019.
Revenue by Segment
Forward Guidance
The Company expects that volatility in the supply and demand for its products and reduced demand in its foodservice distribution channel will continue to adversely impact its results of operations in the second quarter of 2020. The extent of the impact of the COVID-19 pandemic on the Company's financial performance, including the ability to execute on the Company's strategic initiatives, will depend on future developments, including the duration and spread of the pandemic and related government restrictions, all of which are uncertain and cannot be predicted.
Positive Outlook
- Cash on hand.
- Availability under our credit facility.
- Cash flows from operations will be sufficient to manage our operations.
Challenges Ahead
- Volatility in the supply.
- Volatility in the demand for our products.
- Reduced demand in our foodservice distribution channel will continue to adversely impact our results of operations in the second quarter of 2020.
- The extent of the impact of the COVID-19 pandemic on the Company's financial performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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