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Jul 01, 2022
Fresh Del Monte Q2 2022 Earnings Report
Delivered strong net sales amidst unprecedented cost pressures.
Key Takeaways
Fresh Del Monte Produce Inc. reported a 6% increase in net sales for Q2 2022, driven by necessary pricing actions across most product categories. Despite facing inflationary, supply chain, and logistical headwinds that increased the cost of product sold, the company generated positive earnings and maintained its debt balance while continuing dividend payouts.
Net sales increased by $70.3 million, or 6%, compared to the prior-year period, driven by inflation-justified price increases.
Gross profit decreased to $80.7 million compared to $110.0 million in the prior-year period due to higher costs across the board, including packaging materials, fertilizers, ocean and inland freight, fuel, and labor.
Operating income decreased to $34.3 million compared to $59.3 million in the prior-year period, primarily due to lower gross profit, partially offset by lower administrative and advertising expenses.
The Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on September 9, 2022, to shareholders of record on August 17, 2022.
Revenue by Segment
Forward Guidance
The company plans to drive profitable sales by focusing on its sustainable growth strategy and delivering against its key elements, including organic expansion, product innovation, investments in technology, best-in-class customer relationships and sustainability.
Positive Outlook
- Dedication to drive profitable sales
- Focus on sustainable growth strategy
- Organic expansion
- Product innovation
- Investments in technology
Challenges Ahead
- Impact of the ongoing pandemic and the war in Ukraine
- Governmental trade restrictions
- Volatility in macroeconomic environment
- Inflationary impact on fuel and materials
- Continued shortage of qualified labor
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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