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Oct 01, 2021
Fresh Del Monte Q3 2021 Earnings Report
Fresh Del Monte's financial performance was reported for Q3 2021, revealing increased net sales but decreased gross profit and net income compared to the prior-year period.
Key Takeaways
Fresh Del Monte Produce Inc. reported a slight increase in net sales for Q3 2021, reaching $1,004.8 million compared to $989.7 million in the prior-year period. However, the company experienced a decrease in gross profit, operating income, and net income due to inflationary pressures, strained transportation capacity, and labor shortages.
Net sales for Q3 2021 increased to $1,004.8 million, up from $989.7 million in the prior-year period.
Gross profit for Q3 2021 decreased to $48.9 million, compared to $67.3 million in the prior-year period.
Net income for Q3 2021 was $1.3 million, a significant decrease from $17.4 million in the prior-year period.
The company faced challenges due to inflationary pressures, transportation constraints, and labor shortages, impacting margins and profitability.
Revenue by Segment
Forward Guidance
The company is focused on long-term growth by managing its business and providing reliable, quality service to its customers. Recent capital investments in automation, leveraging vertical integration, optimization, and product rationalization are expected to strengthen the company's position.
Positive Outlook
- Capital investments in automation of production facilities.
- Further leveraging of vertical integration.
- Optimization and consolidation of operations.
- Product rationalization.
- Addition of 6 new refrigerated container vessels to the fleet.
Challenges Ahead
- Challenging macroeconomic environment.
- Inflationary and cost pressures across the supply chain.
- Significantly higher input costs.
- Labor shortages.
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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