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Apr 01, 2022
Fresh Del Monte Q1 2022 Earnings Report
Fresh Del Monte's financial performance for Q1 2022 reflected increased net sales driven by favorable pricing, offset by higher costs due to inflation and supply chain challenges, resulting in lower operating income.
Key Takeaways
Fresh Del Monte Produce Inc. reported a 5% increase in net sales for Q1 2022, driven by inflation-justified pricing actions. However, the company's gross profit decreased due to higher costs related to inflation and supply chain constraints, leading to a decline in operating income and net income compared to the prior-year period.
Net sales increased by approximately 5% compared to the prior-year period, driven by favorable pricing.
Gross profit decreased due to higher costs related to unprecedented inflation and supply chain constraints.
Operating income decreased primarily due to lower gross profit.
The company remained focused on driving incremental operating leverage through product innovation, cost management, and operational efficiencies.
Revenue by Segment
Forward Guidance
This press release contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance, including our focus on driving operational leverage through product innovation, cost management, pricing actions and operational efficiencies.
Challenges Ahead
- the impact of the ongoing pandemic and the war in Ukraine on our business, suppliers, customers, consumers, employees, and communities, including the inflationary impact on fuel, petroleum-based products such as fertilizer and packaging materials
- disruptions or inefficiencies in our operations and supply chain, including any impact of the pandemic, the war in Ukraine and the inflationary environment
- the duration and spread of the pandemic and related government restrictions and our ability to maintain the safety of our workforce, especially outside the U.S.
- our ability to successfully execute our plan to stabilize our core business, diversify our business and transform our business to a value-added business
- the impact of governmental trade restrictions, including adverse governmental regulation that may impact our ability to access certain markets
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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