Fresh Del Monte Produce reports lower sales, higher profits in Q1 2021 financial results

Coral Gables, FL-based Fresh Del Monte Produce Inc. (NYSE: FDP) this week reported financial results for the first quarter ended April 2, 2021.

Fresh Del Monte's net sales for the first quarter of 2021 decreased $29.7 million, compared with the prior year period, which was 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 segment.

Fresh Del Monte said 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 an estimated $19.4 million in the first quarter of 2021.
• The negative impact on fruit supply due to hurricanes Eta and Iota that drastically impacted the company's production areas in Guatemala in the fourth quarter of 2020.

“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,” said Mohammad Abu-Ghazaleh, chairman and chief executive. “We remained focused on creating greater efficiencies and controlling costs throughout our operations.”

KEY POINTS:

• Gross profit was $105.0 million for the first quarter of 2021, which represents an increase of 53%, compared with the prior year period, and gross profit margin increased to 10% in the first quarter of 2021, compared with 6% in the prior year period;
• FDP net income for the first quarter of 2021 was $42.7 million, compared with $13.0 million in the prior year period, and Diluted EPS(2) was $0.90 for the first quarter of 2021, compared with $0.27 in the prior year period;
• Adjusted Diluted EPS was $0.88 for the first quarter of 2021, compared with $0.34 in the prior year period; and
• Adjusted EBITDA was $82.3 million for the first quarter of 2021, compared with $51.0 million in the prior year period.

Fresh Del Monte Produce Inc.'s full press release is posted at Business Wire.