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Mar 29, 2024
Fresh Del Monte Q1 2024 Earnings Report
Fresh Del Monte reported mixed results with revenue decline offset by growth in fresh and value-added segment.
Key Takeaways
Fresh Del Monte reported a decrease in net sales for Q1 2024, with $1,107.9 million compared to $1,128.5 million in the prior-year period. The decline was attributed to lower banana net sales and reduced sales in the other products and services segment, although the fresh and value-added products segment saw an increase. Operating income decreased to $44.1 million from $74.5 million year-over-year, and net income was $26.1 million compared to $39.0 million in the prior year.
Net sales decreased to $1,107.9 million from $1,128.5 million year-over-year.
Fresh and value-added products segment revenue increased by 5%.
Banana net sales decreased due to lower volume and pricing.
Operating income declined to $44.1 million compared to $74.5 million in the prior-year period.
Revenue by Segment
Forward Guidance
The press release contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company. These statements include statements that are preceded by, followed by or include the words “believes”, “expects”, “anticipates”, “may” or similar expressions with respect to various matters.
Positive Outlook
- Company’s focus on operational excellence, cost discipline and strategic capital allocation to improve profitability
- Its ability to generate value for its shareholders, including through focusing on its strengths in pineapple, fresh-cut and sustainability-related projects and growing market share
- Expected segment results in 2024
- Expected capital expenditures in 2024
- Expected progress on its strategic alternatives with respect to Mann Packing
Challenges Ahead
- Ongoing elevated commodity and supply chain costs, including costs of raw materials, packaging materials, labor, energy, fuel and transportation
- The 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
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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