Fresh Del Monte Produce Inc. (NYSE: FDP), ("Fresh Del Monte" or
the "Company") today reported financial results for the second
quarter ended July 1, 2022.
Financial highlights for the second quarter 2022:
Fresh Del Monte Produce Inc.
and Subsidiaries
(U.S. dollars in millions,
except per share data) - (Unaudited)
Quarter Ended
July 1, 2022
July 2, 2021
Net sales
$1,211.9
$1,141.6
Gross profit
$80.7
$110.0
FDP net income(1)
$21.2
$47.2
Diluted EPS(2)
$0.44
$0.99
Adjusted diluted EPS(3)
$0.43
$0.98
Adjusted EBITDA(3)
$55.7
$83.6
Adjusted EBITDA margin(3)
4.6%
7.3%
Dividend payout
$0.15/per share
$0.10/per share
"We delivered strong net sales during the second quarter,
marking the fifth consecutive quarter of net sales growth compared
with the prior-year periods — demonstrating the resilience of our
iconic brand. Our net sales increased by $70 million, resulting
from necessary pricing actions — generating growth across most
product categories," said Mohammad Abu-Ghazaleh, Chairman and Chief
Executive Officer.
"We continue to operate in one of the most volatile and
uncertain macroeconomic environments in recent history. As a
result, the cost of product sold increased by $100 million, driven
by broad-based inflationary, supply chain, and logistical
headwinds. Despite these headwinds, we generated positive earnings
— all while maintaining our debt balance in line with last year,
generating strong cash flow from operations and continuing our
dividend payout."
Mr. Abu-Ghazaleh added, "As we move forward, I am confident in
our team's dedication to drive profitable sales. We plan to do that
by focusing on our sustainable growth strategy and delivering
against its key elements — organic expansion, product innovation,
investments in technology, best-in-class customer relationships and
sustainability."
Net sales for the second quarter of 2022 increased $70.3
million, or 6%, compared with the prior-year period. Net sales
benefited from inflation-justified price increases. Partially
offsetting the increase was the negative impact of fluctuations in
exchange rates, primarily versus the Japanese yen and euro compared
with the prior-year period. The negative impact of fluctuations in
exchange rates was partially mitigated by our foreign currency
hedges.
Gross profit for the second quarter of 2022 was $80.7 million
compared with $110.0 million in the prior-year period. Despite
higher net sales, gross profit continued to be negatively impacted
by multilayered cost pressures compared with the prior-year period.
Higher costs across the board including costs of packaging
materials, fertilizers, ocean and inland freight, fuel and labor,
offset our higher net sales.
Operating income for the second quarter of 2022 was $34.3
million compared with $59.3 million in the prior-year period, and
Adjusted operating income(3) was $33.4 million compared with $60.6
million in the prior-year period. The decrease in operating income
was primarily due to lower gross profit, partially offset by lower
administrative and advertising expenses.
Provision for income taxes for the second quarter of 2022 was
$4.9 million compared with $4.8 million in the prior-year period.
Provision for income taxes in the prior-year period reflected the
positive impact of return-to-provision adjustments, including a
$0.8 million benefit relating to the Coronavirus Aid, Relief and
Economic Security (CARES) Act.
FDP net income(1) for the second quarter was $21.2 million
compared with $47.2 million in the prior-year period and Adjusted
FDP net income(3) was $20.7 million compared with $46.8 million in
the prior-year period.
Adjusted EBITDA(3) for the second quarter was $55.7 million
compared with $83.6 million in the prior-year period, and
corresponding Adjusted EBITDA margin(3) was 4.6% compared with 7.3%
in the prior-year period.
(1)
"FDP net income" as referenced throughout
this release is defined as Net income attributable to Fresh Del
Monte Produce Inc.
(2)
"Diluted EPS" represents diluted earnings
per share and is calculated as FDP net income divided by diluted
weighted average shares.
(3)
Non-GAAP financial measure.
Reconciliations and other information required by Regulation G can
be found below under "Non-GAAP Measures."
Second Quarter 2022 Business Segment Performance and Selected
Financial Data
(As reported in business segment data)
Fresh Del Monte Produce Inc.
and Subsidiaries
Business Segment Data
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
July 1, 2022
July 2, 2021
Segment Data:
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
732.4
60
%
$
49.4
61
%
6.7
%
$
674.0
59
%
$
58.3
53
%
8.7
%
Banana
421.6
35
%
22.2
28
%
5.3
%
426.7
37
%
48.1
44
%
11.3
%
Other products and services
57.9
5
%
9.1
11
%
15.6
%
40.9
4
%
3.6
3
%
8.9
%
$
1,211.9
100
%
$
80.7
100
%
6.7
%
$
1,141.6
100
%
$
110.0
100
%
9.6
%
Six months ended
July 1, 2022
July 2, 2021
Net Sales
Gross Profit
Gross Margin
Net Sales
Gross Profit
Gross Margin
Fresh and value-added products
$
1,405.1
60
%
$
93.8
55
%
6.7
%
$
1,305.0
59
%
$
110.6
51
%
8.5
%
Banana
827.6
35
%
60.0
35
%
7.2
%
844.9
38
%
98.0
46
%
11.6
%
Other products and services
116.2
5
%
16.7
10
%
14.4
%
80.0
3
%
6.5
3
%
8.1
%
$
2,348.9
100
%
$
170.5
100
%
7.3
%
$
2,229.9
100
%
$
215.1
100
%
9.6
%
Second Quarter 2022 Business Segment Performance
Fresh and Value-Added
Products
Net sales for the second quarter of 2022 increased by
$58.4 million, or approximately 9%, compared with the prior-year
period. The increase in net sales was driven by higher pricing in
most product categories. Sales volume remained in line with the
prior-year period.
Gross profit for the second quarter of 2022 was $49.4
million compared with $58.3 million in the prior-year period. The
decrease in gross profit from the prior-year period was primarily
driven by non-tropical fruit products, which were negatively
impacted by lack of availability of third-party shipping capacity
on certain shipping routes, and avocados due to market volatility.
Additionally, despite higher net sales, gross profit continued to
be negatively impacted by ongoing cost pressures, which resulted in
higher per unit production and distribution costs, including ocean
and inland freight. As a result, gross margin decreased to 6.7%
compared with 8.7% in the prior-year period.
Gross profit in the fresh and value-added products segment
included $1.6 million of other product-related charges in the
second quarter of 2021, primarily comprised of a $1.3 million
inventory write-off incurred in the Middle East. There were no
other product-related charges in the second quarter of 2022.
Banana
Net sales for the second quarter of 2022 decreased by
$5.1 million compared with the prior-year period. The decrease in
net sales was primarily driven by lower sales volume and the
negative impact of fluctuations in exchange rates in Asia.
Gross profit for the second quarter of 2022 was $22.2
million compared with $48.1 million in the prior-year period. The
decrease in gross profit was primarily driven by higher per unit
distribution costs, including ocean and inland freight, and higher
production costs. As a result of these factors, gross margin
decreased to 5.3% compared with 11.3% in the prior-year period.
Other Products and
Services
Net sales of other products and services increased by
$17.0 million, or 42%, compared with the prior-year period, mainly
due to higher net sales of third-party freight services. The
Company's fleet of vessels has enabled the expansion of commercial
cargo services, which are benefiting from elevated shipping rates
and demand due to market logistical constraints.
Gross profit increased by $5.5 million as a result of
higher net sales of third-party freight services. Gross margin
increased to 15.6% from 8.9%.
Cash Flows
Net cash provided by operating activities for the first six
months of 2022 was $95.1 million compared with $139.5 million in
the prior-year period. The decrease was primarily attributable to
lower net income.
Total Long Term Debt
Total long term debt decreased to $462.7 million at the end of
the second quarter of 2022 from $473.4 million at the end of the
second quarter of 2021.
Quarterly Cash Dividend
On August 2, 2022, the Company's Board of Directors declared a
quarterly cash dividend of $0.15 per share, payable on September 9,
2022 to shareholders of record on August 17, 2022.
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated
Statements of Operations
(U.S. dollars in millions,
except share and per share data) - (Unaudited)
Quarter ended
Six months ended
Statement of Operations:
July 1, 2022
July 2, 2021
July 1, 2022
July 2, 2021
Net sales
$
1,211.9
$
1,141.6
$
2,348.9
$
2,229.9
Cost of products sold
1,131.2
1,029.6
2,178.4
2,011.3
Other product-related charges
—
2.0
—
3.5
Gross profit
80.7
110.0
170.5
215.1
Selling, general and administrative
expenses
47.3
51.4
92.5
100.3
Gain (loss) on disposal of property, plant
and equipment, net
1.6
1.1
(2.2
)
3.8
Asset impairment and other charges
(credits), net
0.7
0.4
1.7
(0.4
)
Operating income
34.3
59.3
74.1
119.0
Interest expense, net
5.7
5.2
11.0
10.4
Other expense, net
2.6
1.6
6.7
3.7
Income before income taxes
26.0
52.5
56.4
104.9
Income tax provision
4.9
4.8
10.7
15.8
Net income
$
21.1
$
47.7
$
45.7
$
89.1
Less: Net (loss) income attributable to
redeemable and noncontrolling interests
(0.1
)
0.5
(1.2
)
(0.8
)
Net income attributable to Fresh Del Monte
Produce Inc.
$
21.2
$
47.2
$
46.9
$
89.9
Earnings per share(1):
Basic
$
0.44
$
0.99
$
0.98
$
1.89
Diluted
$
0.44
$
0.99
$
0.98
$
1.89
Dividends declared per ordinary share
$
0.15
$
0.10
$
0.30
$
0.20
Weighted average number of ordinary
shares:
Basic
47,825,758
47,518,668
47,745,440
47,473,315
Diluted
47,887,123
47,699,536
47,871,704
47,619,704
(1)
Earnings per share ("EPS") is calculated
based on Net income attributable to Fresh Del Monte Produce
Inc.
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated Balance
Sheets
(U.S. dollars in millions) -
(Unaudited)
July 1, 2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents
$
15.6
$
16.1
Trade and other accounts receivable,
net
495.4
437.3
Inventories, net
568.5
602.8
Other current assets
65.6
40.2
Total current assets
1,145.1
1,096.4
Investment in and advances to
unconsolidated companies
16.9
8.7
Property, plant and equipment, net
1,369.8
1,415.8
Operating lease right-of-use assets
195.0
199.0
Goodwill
422.8
423.7
Intangible assets, net
138.9
142.8
Other noncurrent assets
107.2
111.7
Total assets
$
3,395.7
$
3,398.1
Liabilities and shareholders'
equity
Current liabilities:
Accounts payable and accrued expenses
$
606.6
$
580.1
Current maturities of debt and finance
leases
1.3
1.3
Current maturities of operating leases
37.9
37.0
Other current liabilities
17.2
10.8
Total current liabilities
663.0
629.2
Long-term debt and finance leases
470.6
527.7
Operating leases, less current
maturities
130.1
136.0
Other noncurrent liabilities
200.0
231.7
Total liabilities
1,463.7
1,524.6
Redeemable noncontrolling interest
48.8
49.5
Total Fresh Del Monte Produce Inc.
shareholders' equity
1,861.4
1,802.3
Noncontrolling interests
21.8
21.7
Total shareholders' equity
1,883.2
1,824.0
Total liabilities, redeemable
noncontrolling interest and shareholders' equity
$
3,395.7
$
3,398.1
Fresh Del Monte Produce Inc.
and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(U.S. dollars in millions) -
(Unaudited)
Six months ended
July 1, 2022
July 2, 2021
Operating activities:
Net income
$
45.7
$
89.1
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
47.3
46.9
Amortization of debt issuance costs
0.3
0.3
Asset impairments
0.2
—
Share-based compensation expense
2.8
3.7
Deferred income taxes
(5.8
)
0.5
Loss (gain) on disposal of property, plant
and equipment, net
2.2
(3.8
)
Foreign currency translation
adjustment
(12.7
)
0.5
Other, net
2.1
(1.3
)
Changes in operating assets and
liabilities:
Receivables
(61.8
)
(28.8
)
Inventories
26.7
11.4
Prepaid expenses and other current
assets
(0.2
)
3.4
Accounts payable and accrued expenses
42.3
18.5
Other assets and liabilities
6.0
(0.9
)
Net cash provided by operating
activities
95.1
139.5
Investing activities:
Capital expenditures
(23.2
)
(70.4
)
Proceeds from sales of property, plant and
equipment
6.3
11.0
Cash (paid) received from derivatives not
designated as hedges
(0.2
)
4.6
Investments in unconsolidated
companies
(8.1
)
—
Other investing activities
0.1
0.3
Net cash used in investing
activities
(25.1
)
(54.5
)
Financing activities:
Net repayments on debt
(56.4
)
(68.4
)
Distributions to noncontrolling
interests
(0.6
)
(4.3
)
Net payments related to share-based
awards
(0.8
)
(0.3
)
Dividends paid
(14.3
)
(9.5
)
Other financing activities
(0.3
)
—
Net cash used in financing
activities
(72.4
)
(82.5
)
Effect of exchange rate changes on
cash
1.9
0.6
Net (decrease) increase in cash and cash
equivalents
(0.5
)
3.1
Cash and cash equivalents, beginning
16.1
16.5
Cash and cash equivalents, ending
$
15.6
$
19.6
Non-GAAP Measures
The Company's results are determined in accordance with U.S.
generally accepted accounting principles (GAAP). Certain
information presented in this press release reflects adjustments to
GAAP measures such as amounts related to restructuring, asset
impairment and other charges (credits), net, gain (loss) on
disposal of property, plant and equipment, net, other
product-related charges and certain other non-recurring items, if
any. These adjustments result in non-GAAP financial measures and
are referred to in this press release as Adjusted Gross profit,
Adjusted Gross margin, Adjusted Operating income, Adjusted FDP Net
income, and Adjusted Diluted EPS. Management believes these
adjustments provide a more comparable analysis of the underlying
operating performance of the business.
This press release also includes non-GAAP measures such as
EBITDA, Adjusted EBITDA, EBITDA margin, and Adjusted EBITDA margin.
EBITDA is defined as net income attributable to Fresh Del Monte
Produce Inc. excluding interest expense, net, provision for income
taxes, depreciation and amortization, and share-based compensation
expense. Adjusted EBITDA represents EBITDA with additional
adjustments for non-recurring items. EBITDA margin represents
EBITDA as a percentage of net sales, and Adjusted EBITDA margin
represents Adjusted EBITDA as a percentage of net sales.
Adjusted Gross profit, Adjusted Operating income, Adjusted FDP
Net income, and Adjusted EBITDA provide the Company with an
understanding of the results from the primary operations of its
business. The Company uses these metrics because management
believes they provide more comparable measures to evaluate
period-over-period operating performance since they exclude special
items that are not indicative of the Company's core business or
operations. These measures may be useful to an investor in
evaluating the underlying operating performance of the Company's
business because these measures:
- Are used by investors to measure a company's comparable
operating performance;
- Are financial measurements that are used by lenders and other
parties to evaluate creditworthiness; and
- Are used by the Company's management for various purposes,
including as measures of performance of its operating entities, as
a basis of strategic planning and forecasting, and in certain cases
as a basis for incentive compensation.
Because all companies do not use identical calculations, the
Company's presentation of these non-GAAP financial measures may not
be comparable to similarly titled measures used by other companies.
Reconciliations of non-GAAP financial measures to the most directly
comparable GAAP financial measures are provided in the financial
tables that accompany this release.
Fresh Del Monte Produce Inc.
and Subsidiaries
Non-GAAP
Reconciliation
(U.S. dollars in millions,
except per-share amounts) - (Unaudited)
Quarter ended
July 1, 2022
July 2, 2021
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
As reported
$
80.7
$
34.3
$
21.2
$
0.44
$
110.0
$
59.3
$
47.2
$
0.99
Adjustments:
Other product-related charges (1)
—
—
—
—
2.0
2.0
2.0
0.04
Asset impairment and other charges
(credits), net (2)
—
0.7
0.7
0.01
—
0.4
0.4
0.01
(Gain) on disposal of property, plant and
equipment, net (3)
—
(1.6
)
(1.6
)
(0.03
)
—
(1.1
)
(1.1
)
(0.02
)
Other adjustments (4)
—
—
—
—
—
—
(0.1
)
—
Tax effects of all adjustments and other
tax-related items (5)
—
—
0.4
0.01
—
—
(1.6
)
(0.04
)
As adjusted
$
80.7
$
33.4
$
20.7
$
0.43
$
112.0
$
60.6
$
46.8
$
0.98
Six months ended
July 1, 2022
July 2, 2021
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
Gross profit
Operating income
Net income attributable to Fresh
Del Monte Produce Inc.
Diluted EPS
As reported
$
170.5
$
74.1
$
46.9
$
0.98
$
215.1
$
119.0
$
89.9
$
1.89
Adjustments:
Other product-related charges (1)
—
—
—
—
3.5
3.5
3.5
0.07
Asset impairment and other charges
(credits), net (2)
—
1.7
1.7
0.04
—
(0.4
)
(0.4
)
(0.01
)
(Gain) on disposal of property, plant and
equipment, net (3)
—
(2.0
)
(2.0
)
(0.04
)
—
(3.8
)
(3.8
)
(0.08
)
Other adjustments (4)
—
—
—
—
—
—
(0.1
)
—
Tax effects of all adjustments and other
tax-related items (5)
—
—
0.2
—
—
—
(0.7
)
(0.01
)
As adjusted
$
170.5
$
73.8
$
46.8
$
0.98
$
218.6
$
118.3
$
88.4
$
1.86
Fresh Del Monte Produce Inc.
and Subsidiaries
Segment Gross Profit Non-GAAP
Reconciliation
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
July 1, 2022
July 2, 2021
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and services
Gross profit (as reported)
$
49.4
$
22.2
$
9.1
$
58.3
$
48.1
$
3.6
Adjustments:
Other product-related charges (1)
—
—
—
1.6
0.4
—
Adjusted Gross profit
$
49.4
$
22.2
$
9.1
$
59.9
$
48.5
$
3.6
Adjusted Gross margin (a)
6.7
%
5.3
%
15.6
%
8.9
%
11.3
%
8.9
%
Six months ended
July 1, 2022
July 2, 2021
Fresh and value-added
products
Banana
Other products and services
Fresh and value-added
products
Banana
Other products and services
Gross profit (as reported)
$
93.8
$
60.0
$
16.7
$
110.6
$
98.0
$
6.5
Adjustments:
Other product-related charges (1)
—
—
—
4.7
(1.2
)
—
Adjusted Gross profit
$
93.8
$
60.0
$
16.7
$
115.3
$
96.8
$
6.5
Adjusted Gross margin (a)
6.7
%
7.2
%
14.4
%
8.8
%
11.5
%
8.1
%
(a) Calculated as Adjusted Gross profit as
a percentage of net sales.
Fresh Del Monte Produce Inc.
and Subsidiaries
Reconciliation of EBITDA and
Adjusted EBITDA
(U.S. dollars in millions) -
(Unaudited)
Quarter ended
Six months ended
July 1, 2022
July 2, 2021
July 1, 2022
July 2, 2021
Net income attributable to Fresh Del Monte
Produce Inc.
$
21.2
$
47.2
$
46.9
$
89.9
Interest expense, net
5.7
5.2
11.0
10.4
Income tax provision
4.9
4.8
10.7
15.8
Depreciation & amortization
23.7
23.1
47.3
46.9
Share-based compensation expense
1.1
2.1
2.8
3.7
EBITDA
$
56.6
$
82.4
$
118.7
$
166.7
Adjustments:
Other product-related charges (1)
—
2.0
—
3.5
Asset impairment and other charges
(credits), net (2)
0.7
0.4
1.7
(0.4
)
(Gain) on disposal of property, plant and
equipment, net (3)
(1.6
)
(1.1
)
(2.0
)
(3.8
)
Other adjustments (4)
—
(0.1
)
—
(0.1
)
Adjusted EBITDA
$
55.7
$
83.6
$
118.4
$
165.9
Net sales
$
1,211.9
$
1,141.6
$
2,348.9
$
2,229.9
EBITDA margin (a)
4.7
%
7.2
%
5.1
%
7.5
%
(a) Calculated as EBITDA as a percentage
of net sales.
Adjusted EBITDA margin (b)
4.6
%
7.3
%
5.0
%
7.4
%
(b) Calculated as Adjusted EBITDA as a
percentage of net sales.
(1)
Other product-related charges for
the quarter ended July 2, 2021 primarily included a $1.3 million
inventory write-off incurred in the Middle East, $0.4 million in
repair expenses related to hurricane damage to the Company's
Guatemala banana operations in the fourth quarter of 2020, and $0.3
million in non-tropical fruit inventory write-offs related to
inclement weather in Chile. For the six months ended July 2, 2021,
other product-related charges primarily consisted of $3.4 million
of non-tropical fruit inventory write-offs due to inclement weather
in Chile and a $1.3 million inventory write-off incurred in the
Middle East, partially offset by a net insurance recovery of $1.2
million associated with the Guatemala hurricane damage.
(2)
Asset impairment and other
charges (credits), net for the quarter ended July 1, 2022 primarily
consisted of severance expenses due to the planned exit from a
European facility. For the six months ended July 1, 2022, asset
impairment and other charges (credits), net also included severance
expense in connection with the departure of the Company's former
President and Chief Operating Officer. Asset impairment and other
charges (credits), net for the six months ended July 2, 2021
primarily included a $0.8 million insurance recovery associated
with hurricane damage to fixed assets in Guatemala, partially
offset by severance expense related to the exit from a facility in
Europe.
(3)
Gain on disposal of property,
plant and equipment, net for the quarter and six months ended July
1, 2022 primarily related to a $1.4 million gain on the sale of
vacant land in Mexico. Gain on disposal of property, plant and
equipment, net for the quarter ended July 2, 2021 primarily related
to a $1.1 million gain on the sale of vacant land in the Middle
East. For the six months ended July 2, 2021, gain on disposal of
property, plant and equipment, net also included a $2.4 million
gain on the sale of a refrigerated vessel.
(4)
Other adjustments for the quarter
and six months ended July 2, 2021 primarily related to the portions
of the gain on disposal of property, plant, and equipment, net and
other product-related charges which were attributable to a minority
interest partner, reflected in net (loss) income attributable to
redeemable and noncontrolling interests.
(5)
Tax effects are calculated in
accordance with ASC 740, Income Taxes, using the same methodology
as the GAAP provision of income taxes. Income tax effects of
non-GAAP adjustments are calculated based on the applicable
statutory tax rate for each jurisdiction in which such charges were
incurred, except for those items which are non-taxable for which
the tax provision (benefit) was calculated at 0%. Certain non-GAAP
adjustments were subject to valuation allowances and therefore were
calculated at 0%. The quarter and six months ended July 2, 2021
also included a $0.8 million tax benefit associated with the
Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Conference Call and Webcast Data
Fresh Del Monte will host a conference call and simultaneous
webcast at 10:00 a.m. Eastern Time today to discuss the second
quarter 2022 financial results and to review the Company’s progress
and outlook. The webcast can be accessed on the Company’s Investor
Relations home page at https://investorrelations.freshdelmonte.com.
The call will be available for re-broadcast on the Company’s
website approximately two hours after the conclusion of the call
for a period of one year.
About Fresh Del Monte Produce Inc.
Fresh Del Monte Produce Inc. is one of the world's leading
vertically integrated producers, marketers and distributors of
high-quality fresh and fresh-cut fruit and vegetables, as well as a
leading producer and distributor of prepared food in Europe, Africa
and the Middle East. Fresh Del Monte markets its products worldwide
under the Del Monte® brand (under license from Del Monte Foods,
Inc.), a symbol of product innovation, quality, freshness and
reliability for over 135 years. The Company also markets its
products under the Mann™ brand and other related trademarks. Fresh
Del Monte Produce Inc. is not affiliated with certain other Del
Monte companies around the world, including Del Monte Foods, Inc.,
the U.S. subsidiary of Del Monte Pacific Limited, Del Monte Canada,
or Del Monte Asia Pte. Ltd. Fresh Del Monte is the first global
marketer of fruits and vegetables to commit to the “Science Based
Targets” initiative. In 2022, Fresh Del Monte Produce was ranked as
one of "America's Most Trusted Companies" by Newsweek based on an
independent survey rating companies on three different touchpoints,
including customer trust, investor trust, and employee trust. Fresh
Del Monte Produce is traded on the NYSE under the symbol FDP.
Forward-looking Information
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 (a) our teams dedication to drive
profitable sales; and (b) our focus on delivering against the key
elements of our sustainable growth strategy. These statements also
include statements that are preceded by, followed by or include the
words “believes”, “expects”, “anticipates”, “may” or similar
expressions with respect to various matters. It is important to
note that these forward-looking statements are not guarantees of
future performance and involve risks and uncertainties. Fresh Del
Monte’s actual plans and performance may differ materially from
those in the forward-looking statements as a result of various
factors, including (i) the impact of the ongoing pandemic and the
war in Ukraine on our business, suppliers, customers, consumers,
employees, and communities, including the inflationary impact on
fuel, petroleum-based products such as fertilizer and packaging
materials, (ii) our ability to successfully execute our plan to
stabilize our core business, diversify our business and transform
our business to a value-added business, (iii) the impact of
governmental trade restrictions, including adverse governmental
regulation that may impact our ability to access certain markets,
(iv) our ability to meet our anticipated cash needs, (v) the
continued ability of our distributors and suppliers to have access
to sufficient liquidity to fund their operations, (vi) trends and
other factors affecting our financial condition or results of
operations from period to period, including changes in product mix,
consumer preferences or consumer demand for branded products such
as ours; anticipated price and expense levels; the impact of crop
disease, such as vascular diseases, one of which is known as
Tropical Race 4, or TR4 (also known as Panama Disease), severe
weather conditions, such as flooding, or natural disasters, such as
earthquakes, on crop quality and yields and on our ability to grow,
procure or export our products; disruptions or issues that impact
our production facilities or complex logistics network; and the
availability of sufficient labor during peak growing and harvesting
seasons, (vii) competitive pressures and our ability to realize the
full benefits of the inflation driven price increases implemented,
(viii) the impact of inflation and foreign currency fluctuations,
including the effectiveness of our hedging activities, (ix) the
continued shortage of qualified labor, (x) our plans for expansion
of our business, including our ability to successfully integrate
acquisitions into our operations, and cost savings, (xi) the impact
of impairment or other charges associated with exit activities,
crop or facility damage or otherwise, (xii) the timing and cost of
resolution of pending and future legal and environmental
proceedings or investigations, (xiii) the impact of claims and
adjustments proposed by the IRS or other foreign taxing authorities
in connection with our current or future tax audits and our ability
to successfully contest such tax claims and pursue necessary
remedies, (xiv) the cost and other implications of changes in
regulations applicable to our business, including potential
legislative or regulatory initiatives in the United States or
elsewhere directed at mitigating the effects of climate change,
(xv) damage to our reputation or brand names or negative publicity
about our products, (xvi) exposure to product liability claims and
associated regulatory and legal actions, product recalls, or other
legal proceedings relating to our business, (xvii) our ability to
successful implement our optimization program and to realize its
expected benefits within the anticipated timeframe, and (xviii) our
ability to successfully manage the risks associated with
international operations. All forward-looking statements in this
press release are based on information available to us on the date
hereof, and we assume no obligation to update such statements.
These statements and our future plans and performance may also be
affected by the factors described in our Annual Report on Form 10-K
for the year ended December 31, 2021, along with other reports that
we have filed with the Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220803005118/en/
Ana Miranda Vice President, Global FP&A and
Investor Relations 305-520-8433
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