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Mar 31, 2023
Fresh Del Monte Q1 2023 Earnings Report
Reported financial results for the first quarter ended March 31, 2023.
Key Takeaways
Fresh Del Monte Produce reported a decrease in net sales by 1% compared to the prior-year period, but experienced strong gross profit and margin due to higher per unit selling prices and lower distribution costs. The company finalized the sale of three underutilized properties as part of its asset optimization plan.
Net sales decreased by 1% due to lower per unit selling prices of avocados and lower volumes in the fresh and value-added products segment.
Gross profit increased due to higher per unit selling prices and lower distribution costs.
Operating income increased primarily due to the gain on sale of underutilized assets and higher gross profit.
The Board of Directors declared a quarterly cash dividend of $0.20 per share.
Revenue by Segment
Forward Guidance
The press release and earnings call contain forward-looking statements regarding the Company’s plans and expectations for future performance, including the Company’s commitment to efficiency and optimization of resources and the impact on its results of operations.
Positive Outlook
- Commitment to efficiency and optimization of resources and the impact on its results of operations
- Strategies and goals for evaluation of its product lines and assets and the impacts to profitability
- Focus on flexibility and identification of market opportunities and the impact to shareholder value
- Focus on optimizing the use of capital and operating assets
- Expansion of its logistics business, the strategies for expansion and the impacts of such strategies
Challenges Ahead
- Macroeconomic factors, including inflation, interest rates and foreign exchange rates
- The Company’s ability to successfully develop and expand its logistics business
- Trends and other factors affecting consumer preferences, including whether consumers are receptive to the ideas and innovations made by the Company
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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