Vending

Fresh Del Monte Produce boosts Q2 2021 sales, earnings

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August 4, 2021

Fresh Del Monte Produce Inc. improved sales and earnings for the Q2, 2021 quarter ending July 2, according to an earnings release.

Net sales increased 5% from $1.09 billion in Q2, 2020 to $1.14 billion in Q2, 2021, primarily driven by higher net sales in the company's fresh and value-added products and other products and services business segments.

Net income rose 164% from $17.9 million to $47.2 million in the comparative quarters, due to higher operating income.

Diluted earnings per share rose from 38 cents to 99 cents in the comparative quarters, while adjusted diluted EPS rose from 54 cents to 98 cents.

"Our strong performance during the second quarter of 2021 reflects relaxed restrictions on social gatherings in some of our key markets, compared to the prior-year period," Mohammad Abu-Ghazaleh, chairman and CEO, said in the press release. "Our pineapple, fresh-cut fruit and prepared food products led sales and profitability growth, despite inflationary and cost pressures, which are expected to continue."

The $1.14 billion in quarterly revenue missed analyst expectations by $10 million, while the GAAP EPS of 99 cents beat expectations by 18 cents and the non-GAAP EPS of 98 cents beat expectations by 15 cents, according to Seeking Alpha.

Shares traded at $30.79 today against a 52-week range of $20.71-$36.57.

The company declared a quarterly cash dividend of 15 cents per share, payable on Sept. 10, 2021 to shareholders of record on Aug. 18, 2021, an increase of 5 cents per share from the 10-cent dividend paid on June 11.

Higher sales in the pineapple product line in all regions were driven by an increase in per unit sales prices and sales volumes.

Higher sales in its fresh-cut fruit product line, primarily in Europe and North America, were driven by an increase in sales volumes and per unit sales prices.

Higher sales in the fresh-cut vegetable product line, primarily in the Middle East and in its Mann Packing business in North America, were driven by an increase in sales volumes and per unit sales prices.