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Dec 27, 2019
Fresh Del Monte Q4 2019 Earnings Report
Fresh Del Monte Produce experienced a decrease in net sales due to lower sales in the fresh and value-added segment, driven by a product recall, but saw improved performance in the banana segment. The company reported a net loss, though less severe than the previous year.
Key Takeaways
Fresh Del Monte Produce reported a decrease in net sales for Q4 2019, primarily due to lower sales in the fresh and value-added segment related to a product recall. The company experienced a net loss of $25.8 million, an improvement over the $34.0 million loss in Q4 2018. However, the company increased the dividend by 25% from $0.08 to $0.10 per share.
Net sales decreased to $1,025.2 million compared to $1,045.9 million in Q4 2018.
The company reported a net loss of $25.8 million, compared to a net loss of $34.0 million in Q4 2018.
Gross profit was $36.3 million versus $42.4 million in the same quarter last year.
The Board of Directors declared a dividend of $0.10 per share, a 25% increase.
Revenue by Segment
Forward Guidance
This press release contains certain forward-looking statements regarding the intent, beliefs or current expectations of the Company or its officers with respect to the Company’s plans and future performance, including beliefs regarding the continuation of the Company's transformation process and its ability to drive innovation and growth to leverage core products to drive consistent revenue and earnings growth for the long-term.
Positive Outlook
- The company is focusing on becoming a value-added and more diversified Company.
- The emphasis on strengthening our core businesses led to higher gross margins and increased profitability.
- We also saw continued demand in our value-added fresh-cut and avocado product lines.
- Fresh Del Monte Produce is a different company today than it was a year ago.
- We believe our transformation process will continue as we drive innovation and growth in our value-added businesses and leverage our core products to drive consistent revenue and earnings growth for the long-term.
Challenges Ahead
- Our ability to successfully execute our plan to stabilize our core business, diversify our business and transform our business to a value-added business
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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