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Jun 28, 2024
Fresh Del Monte Q2 2024 Earnings Report
Fresh Del Monte reported strong margin improvement in the Fresh and Value-Added Products segment and a decrease in debt, signaling strengthened financial stability.
Key Takeaways
Fresh Del Monte Produce Inc. reported a decrease in net sales due to lower banana sales, but this was partially offset by increased sales in the fresh and value-added products segment. The company saw a slight decrease in gross profit and operating income. FDP net income increased compared to the prior-year period.
Net sales decreased to $1,139.7 million compared to $1,180.5 million in the prior-year period.
Gross profit decreased to $113.2 million compared to $116.8 million in the prior-year period.
Operating income decreased to $68.2 million compared to $72.1 million in the prior-year period.
Long-term debt decreased to $285.0 million from $400.5 million in the prior-year.
Revenue by Segment
Forward Guidance
This press release and the related earnings call contain certain forward-looking statements regarding the intent, beliefs or current expectations of the Company.
Positive Outlook
- The 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 cut fruit, avocados and value-added products
- Our expectations regarding the demand and volume growth projection of our pineapple varieties and avocado and avocado-related products
- Our ability to reduce operational costs and improve margins in our fresh and value-added segment
- Our expectations regarding customer growth and the expansion and diversification of our product offerings
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, biofertilizers 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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