Vending

Fresh Del Monte Produce boosts income on declining Q1 2021 sales

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May 6, 2021

Fresh Del Monte Produce Inc.'s net sales decreased $29.7 million from $1.12 billion in Q1 2020 to $1.09 billion in Q1 2021, according to an earnings report, primarily due to lower net sales in the company's fresh and value-added and banana business segments, partially offset by higher sales in the company's other products and services business segments.

Net income rose from $13 million to $41.4 million, while earnings per share rose from 27 cents to 90 cents on both a basic and diluted basis.

The overall decrease in net sales was driven by the continued negative effect of the COVID-19 pandemic on the company's foodservice distribution channel which reduced net sales by $19.4 million.

The negative impact on fruit supply due to hurricanes Eta and Iota also impacted the company's production areas in Guatemala in the fourth quarter of 2020.

Shares traded at $34.63 Wednesday against a 52-week range of $20.25-$34.79.

"Despite slightly lower net sales resulting from the continued impact of COVID-19 restrictions on our foodservice customers, and the reduced supply of fruit due to the two hurricanes in Guatemala in the fourth quarter of 2020, we generated strong results," Mohammad Abu-Ghazaleh, chairman and chief executive officer, said in the press release. "We remained focused on creating greater efficiencies and controlling costs throughout our operations."

For an update on how the coronavirus pandemic has affected convenience services, click here.