Fresh Del Monte Produce Inc. Announces Fourth Quarter and Full Year 2020 Financial Results
Fresh Del Monte Produce reported its financial results for Q4 and full year 2020. Earnings per diluted share for 2020 were $1.03, down from $1.37 in 2019. The company’s adjusted EPS rose to $1.15 from $1.12 year-over-year. Q4 saw earnings of $0.02 per share, recovering from a loss of $0.54 in 2019. Annual net sales dropped to $4.2 billion, largely due to a $303.6 million impact from the COVID-19 pandemic. Despite challenges, Fresh Del Monte declared a $0.10 dividend and highlighted its strategic focus on value-added products to enhance performance in 2021.
- Improved earnings per diluted share in Q4 2020 at $0.02, compared to a loss of $0.54 in Q4 2019.
- Maintained adjusted earnings per diluted share of $1.15 for 2020, showing resilience.
- Strategic initiatives led to reduced debt and improved cash flow.
- Net sales for 2020 decreased to $4.2 billion from $4.5 billion in 2019.
- COVID-19 pandemic negatively impacted sales by an estimated $303.6 million.
- Gross profit for 2020 declined to $250.9 million from $306.4 million in 2019.
Fresh Del Monte Produce Inc. (NYSE: FDP) ("Fresh Del Monte Produce" or the "Company") today reported financial results for the fourth quarter and fiscal year 2020. For the full year 2020, the Company reported earnings per diluted share of
The Company's Board of Directors declared a cash dividend of ten cents
“In 2020, we benefited from actions taken as part of our
"We are optimistic that with an improved balance sheet, and our strategic focus on value-added products to respond to the shift in delivery channels driven by the trend towards a ‘stay-at-home economy’ we will continue to see gains in our performance during 2021. Our goal, as always, is to deliver shareholder value over the long-term,” Abu-Ghazaleh added.
Net sales for the full year 2020 were
Gross profit for the full year 2020 was
Operating income for the full year 2020 was
Net income attributable to Fresh Del Monte Produce Inc. for the full year 2020 was
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 |
|
Year ended |
||||||||||||
Statement of Operations: |
January 1, 2021 |
|
December 27, 2019 |
|
January 1, 2021 |
|
December 27, 2019 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,002.3 |
|
|
$ |
1,025.2 |
|
|
$ |
4,202.3 |
|
|
$ |
4,489.0 |
|
Cost of products sold |
953.2 |
|
|
983.3 |
|
|
3,917.8 |
|
|
4,177.4 |
|
||||
Other product-related charges |
12.7 |
|
|
4.4 |
|
|
33.6 |
|
|
5.2 |
|
||||
Gross profit |
36.4 |
|
|
37.5 |
|
|
250.9 |
|
|
306.4 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
53.8 |
|
|
50.6 |
|
|
196.2 |
|
|
201.5 |
|
||||
Gain on disposal of property, plant and equipment, net |
20.7 |
|
|
2.5 |
|
|
22.2 |
|
|
18.6 |
|
||||
Asset impairment and other charges, net |
4.2 |
|
|
0.9 |
|
|
0.4 |
|
|
9.4 |
|
||||
Operating income (loss) |
(0.9 |
) |
|
(11.5 |
) |
|
76.5 |
|
|
114.1 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
5.2 |
|
|
5.2 |
|
|
20.7 |
|
|
24.3 |
|
||||
Other (income) expense, net |
(0.7 |
) |
|
7.0 |
|
|
4.5 |
|
|
(0.9 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes |
(5.4 |
) |
|
(23.7 |
) |
|
51.3 |
|
|
90.7 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax provision (benefit) |
(4.4 |
) |
|
1.4 |
|
|
5.0 |
|
|
21.4 |
|
||||
Net income (loss) |
$ |
(1.0 |
) |
|
$ |
(25.1 |
) |
|
$ |
46.3 |
|
|
$ |
69.3 |
|
|
|
|
|
|
|
|
|
||||||||
Less: Net (loss) income attributable to redeemable and noncontrolling interests |
(1.9 |
) |
|
0.7 |
|
|
(2.9 |
) |
|
2.8 |
|
||||
Net income (loss) attributable to Fresh Del Monte Produce Inc. |
$ |
0.9 |
|
|
$ |
(25.8 |
) |
|
$ |
49.2 |
|
|
$ |
66.5 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per ordinary share attributable to Fresh Del Monte Produce Inc. - Basic |
$ |
0.02 |
|
|
$ |
(0.54 |
) |
|
$ |
1.03 |
|
|
$ |
1.38 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per ordinary share attributable to
|
$ |
0.02 |
|
|
$ |
(0.54 |
) |
|
$ |
1.03 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per ordinary share |
$ |
0.10 |
|
|
$ |
0.08 |
|
|
$ |
0.30 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of ordinary shares: |
|
|
|
|
|
|
|
||||||||
Basic |
47,369,452 |
|
|
48,014,506 |
|
|
47,569,794 |
|
|
48,291,345 |
|
||||
Diluted |
47,462,572 |
|
|
48,014,506 |
|
|
47,660,600 |
|
|
48,394,113 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Selected Statement of Operations Data: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
$ |
24.6 |
|
|
$ |
25.4 |
|
|
$ |
95.5 |
|
|
$ |
98.9 |
|
Fresh Del Monte Produce Inc. and Subsidiaries |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(U.S. dollars in millions) - (Unaudited) |
|||||||
|
|
|
|
||||
|
January 1, 2021 |
|
December 27, 2019 |
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
16.5 |
|
|
$ |
33.3 |
|
Trade and other accounts receivable, net |
435.2 |
|
|
439.0 |
|
||
Inventories, net |
507.7 |
|
|
551.8 |
|
||
Other current assets |
52.9 |
|
|
27.4 |
|
||
Total current assets |
1,012.3 |
|
|
1,051.5 |
|
||
|
|
|
|
||||
Investment in and advances to unconsolidated companies |
1.9 |
|
|
1.9 |
|
||
Property, plant and equipment, net |
1,420.3 |
|
|
1,403.2 |
|
||
Operating lease right-of-use assets |
170.5 |
|
|
162.1 |
|
||
Goodwill |
424.0 |
|
|
423.7 |
|
||
Intangible assets, net |
150.4 |
|
|
158.2 |
|
||
Other noncurrent assets |
163.9 |
|
|
149.3 |
|
||
Total assets |
$ |
3,343.3 |
|
|
$ |
3,349.9 |
|
|
|
|
|
||||
Liabilities and shareholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
511.8 |
|
|
$ |
522.2 |
|
Current maturities of debt and finance leases |
0.2 |
|
|
0.3 |
|
||
Current maturities of operating leases |
28.8 |
|
|
32.5 |
|
||
Other current liabilities |
14.0 |
|
|
7.9 |
|
||
Total current liabilities |
554.8 |
|
|
562.9 |
|
||
|
|
|
|
||||
Long-term debt and finance leases |
541.8 |
|
|
586.8 |
|
||
Operating leases, less current maturities |
114.4 |
|
|
102.7 |
|
||
Other noncurrent liabilities |
332.4 |
|
|
298.5 |
|
||
Total liabilities |
1,543.4 |
|
|
1,550.9 |
|
||
|
|
|
|
||||
Redeemable noncontrolling interests |
50.2 |
|
|
55.3 |
|
||
|
|
|
|
||||
|
|
|
|
||||
Total Fresh Del Monte Produce Inc. shareholders' equity |
1,728.0 |
|
|
1,719.2 |
|
||
Noncontrolling interests |
21.7 |
|
|
24.5 |
|
||
Total shareholders' equity |
1,749.7 |
|
|
1,743.7 |
|
||
Total liabilities, redeemable noncontrolling interests and shareholders' equity |
$ |
3,343.3 |
|
|
$ |
3,349.9 |
|
|
Fresh Del Monte Produce Inc. and Subsidiaries |
||||||||||||||
|
Non-GAAP Measures (per share)(1): |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Quarter ended |
|
Year ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
January 1, 2021 |
|
December 27, 2019 |
|
January 1, 2021 |
|
December 27, 2019 |
||||||||
Reported net income (loss) - Diluted |
$ |
0.02 |
|
|
$ |
(0.54 |
) |
|
$ |
1.03 |
|
|
$ |
1.37 |
|
Sales claims due to vegetable product recall |
— |
|
|
0.12 |
|
|
(0.01 |
) |
|
0.12 |
|
||||
Other product-related charges |
0.27 |
|
|
0.09 |
|
|
0.71 |
|
|
0.11 |
|
||||
Asset impairment and other charges, net |
0.09 |
|
|
0.02 |
|
|
0.01 |
|
|
0.19 |
|
||||
Gain on disposal of property, plant, and equipment, net |
(0.44 |
) |
|
(0.11 |
) |
|
(0.47 |
) |
|
(0.44 |
) |
||||
Gain on settlement of litigation |
— |
|
|
— |
|
|
— |
|
|
(0.33 |
) |
||||
Other adjustments |
— |
|
|
— |
|
|
0.01 |
|
|
— |
|
||||
Tax effects of all adjustments and other tax-related items |
(0.02 |
) |
|
(0.03 |
) |
|
(0.13 |
) |
|
0.10 |
|
||||
Adjusted net income (loss) - Diluted |
$ |
(0.08 |
) |
|
$ |
(0.45 |
) |
|
$ |
1.15 |
|
|
$ |
1.12 |
|
(1) |
Refer to Non-GAAP measures section for further reconciliation on Non-GAAP measures. |
|
Fresh Del Monte Produce Inc. and Subsidiaries |
|||||||||||||||||||||||||||
|
Business Segment Data |
|||||||||||||||||||||||||||
|
(U.S. dollars in millions) - (Unaudited) |
|||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
|
Quarter ended |
|||||||||||||||||||||||||||
|
January 1, 2021 |
|
December 27, 2019 |
|||||||||||||||||||||||||
Segment Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Net Sales |
|
Gross Profit |
|
Net Sales |
|
Gross Profit |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Fresh and value-added products |
$ |
586.3 |
|
|
59 |
% |
|
$ |
24.6 |
|
|
68 |
% |
|
$ |
597.2 |
|
|
58 |
% |
|
$ |
20.9 |
|
(1) |
|
56 |
% |
Banana |
384.2 |
|
|
38 |
% |
|
10.0 |
|
|
27 |
% |
|
398.7 |
|
|
39 |
% |
|
14.2 |
|
(1) |
|
38 |
% |
||||
Other products and services |
31.8 |
|
|
3 |
% |
|
1.8 |
|
|
5 |
% |
|
29.3 |
|
|
3 |
% |
|
2.4 |
|
|
6 |
% |
|||||
|
$ |
1,002.3 |
|
|
100 |
% |
|
$ |
36.4 |
|
|
100 |
% |
|
$ |
1,025.2 |
|
|
100 |
% |
|
$ |
37.5 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Year ended |
|||||||||||||||||||||||||||
|
January 1, 2021 |
|
December 27, 2019 |
|||||||||||||||||||||||||
Segment Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Net Sales |
|
Gross Profit |
|
Net Sales |
|
Gross Profit |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Fresh and value-added products |
$ |
2,484.1 |
|
|
59 |
% |
|
$ |
158.4 |
|
|
63 |
% |
|
$ |
2,704.4 |
|
|
60 |
% |
|
$ |
193.2 |
|
(1) |
|
63 |
% |
Banana |
1,602.6 |
|
|
38 |
% |
|
84.3 |
|
|
34 |
% |
|
1,656.0 |
|
|
37 |
% |
|
104.4 |
|
(1) |
|
34 |
% |
||||
Other products and services |
115.6 |
|
|
3 |
% |
|
8.2 |
|
|
3 |
% |
|
128.6 |
|
|
3 |
% |
|
8.8 |
|
|
3 |
% |
|||||
|
$ |
4,202.3 |
|
|
100 |
% |
|
$ |
250.9 |
|
|
100 |
% |
|
$ |
4,489.0 |
|
|
100 |
% |
|
$ |
306.4 |
|
|
100 |
% |
|
(1) |
The Company's segment data disclosures for the year 2019 have been revised to reflect certain reclassification adjustments affecting cost of products sold. These reclassification adjustments resulted in an increase to gross profit in the Company's banana segment of |
|
Quarter ended |
|
Year ended |
||||||||||||||||||||||||
Net Sales by Geographic Region: |
|
|
|
|
|
|
|
||||||||||||||||||||
|
January 1, 2021 |
|
December 27, 2019 |
|
January 1, 2021 |
|
December 27, 2019 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
North America |
$ |
609.7 |
|
|
61 |
% |
|
$ |
637.4 |
|
|
62 |
% |
|
$ |
2,601.7 |
|
|
62 |
% |
|
$ |
2,923.8 |
|
|
65 |
% |
Europe |
163.4 |
|
|
16 |
% |
|
162.3 |
|
|
16 |
% |
|
648.6 |
|
|
16 |
% |
|
645.2 |
|
|
14 |
% |
||||
Asia |
110.8 |
|
|
11 |
% |
|
101.6 |
|
|
10 |
% |
|
466.1 |
|
|
11 |
% |
|
453.0 |
|
|
10 |
% |
||||
Middle East |
103.5 |
|
|
10 |
% |
|
115.3 |
|
|
11 |
% |
|
432.9 |
|
|
10 |
% |
|
425.8 |
|
|
10 |
% |
||||
Other |
14.9 |
|
|
2 |
% |
|
8.6 |
|
|
1 |
% |
|
53.0 |
|
|
1 |
% |
|
41.2 |
|
|
1 |
% |
||||
|
$ |
1,002.3 |
|
|
100 |
% |
|
$ |
1,025.2 |
|
|
100 |
% |
|
$ |
4,202.3 |
|
|
100 |
% |
|
$ |
4,489.0 |
|
|
100 |
% |
Fresh Del Monte Produce Inc. and Subsidiaries |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(U.S. dollars in millions) - (Unaudited) |
|||||||
|
Year ended |
||||||
|
January 1, 2021 |
|
December 27, 2019 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
46.3 |
|
|
$ |
69.3 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
95.0 |
|
|
97.9 |
|
||
Amortization of debt issuance costs |
0.5 |
|
|
1.0 |
|
||
Asset impairment charges, net |
11.8 |
|
|
8.4 |
|
||
Gain on disposal of property, plant and equipment, net |
(22.2 |
) |
|
(18.6 |
) |
||
Foreign currency translation adjustment |
7.7 |
|
|
6.2 |
|
||
Other changes |
4.9 |
|
|
12.8 |
|
||
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
16.1 |
|
|
22.1 |
|
||
Inventories |
38.7 |
|
|
8.1 |
|
||
Other current assets |
(12.7 |
) |
|
8.0 |
|
||
Accounts payable and accrued expenses |
(11.7 |
) |
|
(53.3 |
) |
||
Other noncurrent assets and liabilities |
6.2 |
|
|
7.2 |
|
||
Net cash provided by operating activities |
180.6 |
|
|
169.1 |
|
||
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Capital expenditures |
(150.0 |
) |
|
(122.3 |
) |
||
Proceeds from sale of an investment |
0.5 |
|
|
0.7 |
|
||
Proceeds from sales of property, plant and equipment |
39.5 |
|
|
69.4 |
|
||
Other investing activities |
1.2 |
|
|
— |
|
||
Net cash used in investing activities |
(108.8 |
) |
|
(52.2 |
) |
||
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Net repayments on long-term debt |
(45.0 |
) |
|
(74.8 |
) |
||
Distributions to noncontrolling interests, net |
(6.9 |
) |
|
(4.8 |
) |
||
Repurchase and retirement of ordinary shares |
(20.8 |
) |
|
(17.9 |
) |
||
Dividends paid |
(14.3 |
) |
|
(6.7 |
) |
||
Other financing activities |
1.2 |
|
|
(4.7 |
) |
||
Net cash used by financing activities |
(85.8 |
) |
|
(108.9 |
) |
||
|
|
|
|
||||
Effect of exchange rate changes on cash |
(2.8 |
) |
|
4.0 |
|
||
|
|
|
|
||||
Net (decrease) increase in cash and cash equivalents |
(16.8 |
) |
|
12.0 |
|
||
Cash and cash equivalents, beginning |
33.3 |
|
|
21.3 |
|
||
Cash and cash equivalents, ending |
$ |
16.5 |
|
|
$ |
33.3 |
|
Full Year 2020 Business Segment Performance
(As reported in business segment data)
Fresh and Value-Added Products - Includes the Company's pineapples, fresh-cut fruit, fresh-cut vegetables, melons, vegetables, non-tropical fruit (including grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries and kiwis), other fruit and vegetables, avocados, and prepared foods (including prepared fruit and vegetables, juices, other beverages, and meals and snacks).
Net sales for the year were
Gold pineapple - Net sales increased
Fresh-cut fruit - Net sales decreased
Fresh-cut vegetables - Net sales decreased
Avocados - Net sales decreased
Non-tropical - Net sales increased
Vegetables - Net sales decreased
Prepared food products - Includes the Company's prepared traditional products, and meals and snacks product lines. The decrease in net sales was primarily the result of lower sales in the Company's meals and snacks product line, due to the impact of the COVID-19 pandemic, the continuing impact of the 2019 product recall and product rationalization efforts in the Company's Mann Packing operations in North America which resulted in the discontinuance of low margin products. The decrease was partially offset by increased sales volume and per unit sales prices of canned pineapple products, higher per unit sales prices of canned non-tropical fruit due to improved customer demand, and higher per unit sales prices of pineapple concentrate products due to lower industry supply.
Bananas
Net sales for the year were
Fourth Quarter 2020 Business Segment Performance
(As reported in business segment data)
Fresh and Value-Added Products - Includes the Company's pineapples, fresh-cut fruit, fresh-cut vegetables, melons, vegetables, non-tropical fruit (including grapes, apples, citrus, blueberries, strawberries, pears, peaches, plums, nectarines, cherries and kiwis), other fruit and vegetables, avocados, and prepared foods (including prepared fruit and vegetables, juices, other beverages, and meals and snacks).
Net sales for the quarter decreased to
Gold pineapple - Net sales increased
Fresh-cut fruit - Net sales decreased
Fresh-cut vegetables - Net sales increased
Avocados - Net sales decreased
Vegetables - Net sales decreased
Non-tropical - Net sales increased
Prepared food products - Includes the Company's prepared traditional products, and meals and snacks product lines. The decrease in net sales was primarily the result of lower sales in the Company's meals and snacks product line, due to the impact of the COVID-19 pandemic, the continuing impact of the 2019 product recall and product rationalization efforts in the Company's Mann Packing operations in North America which resulted in the discontinuance of low margin products. The decrease was partially offset by increased per unit sales prices of canned pineapple products, higher per unit sales prices of canned non-tropical fruit due to improved customer demand, and higher per unit sales prices of pineapple concentrate products due to lower industry supply.
Bananas
Net sales for the quarter were
Cash Flows
Net cash provided by operating activities for the full-year was
Total Debt
Total debt decreased from
Interest Expense, Net
Interest expense, net for the full year of 2020 was
Income Tax Provision (Benefit)
Provision for income taxes (benefit) for the full year of 2020 was
Non-GAAP Measures
The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Some of the information presented in this press release reflects adjustments to GAAP measures such as amounts related to restructuring, asset impairment and other charges, net, gain on disposal of property, plant and equipment, net, other product-related charges and certain other non-recurring items, if any. Management believes these adjustments provide a more comparable analysis of the underlying operating performance of the business. These adjustments result in non-GAAP financial measures and are referred to in this press release as adjusted gross profit, adjusted operating income, adjusted net income and adjusted net income per diluted share. 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.
Adjusted gross profit, adjusted operating income and adjusted net income provide the Company with an understanding of the results from the primary operations of its business. The Company uses adjusted operating income and adjusted net income to evaluate its period-over-period operating performance because management believes they provide more comparable measures of the Company's underlying operating performance as they adjust for special items to provide greater clarity to management and investors. 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 and as a basis of strategic planning and forecasting.
|
Fresh Del Monte Produce Inc. and Subsidiaries |
||||||||||||||||||||||||||||||
|
Non-GAAP Reconciliation |
||||||||||||||||||||||||||||||
|
(U.S. dollars in millions, except per-share amounts) - (Unaudited) |
||||||||||||||||||||||||||||||
|
Quarter ended |
||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||
|
January 1, 2021 |
|
December 27, 2019 |
||||||||||||||||||||||||||||
|
Gross profit |
|
Operating income (loss) |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. per diluted share |
|
Gross profit |
|
Operating income (loss) |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. per diluted share |
||||||||||||||||
As reported |
$ |
36.4 |
|
|
$ |
(0.9) |
|
|
$ |
0.9 |
|
|
$ |
0.02 |
|
|
$ |
37.5 |
|
|
$ |
(11.5) |
|
|
$ |
(25.8) |
|
|
$ |
(0.54) |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales claims due to vegetable product recall (1) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6.0 |
|
|
6.0 |
|
|
6.0 |
|
|
0.12 |
|
||||||||
Other product-related charges (1), (2) |
12.7 |
|
|
12.7 |
|
|
12.7 |
|
|
0.27 |
|
|
4.4 |
|
|
4.4 |
|
|
4.4 |
|
|
0.09 |
|
||||||||
Asset impairment and other charges, net (3) |
— |
|
|
4.2 |
|
|
4.2 |
|
|
0.09 |
|
|
— |
|
|
0.9 |
|
|
0.9 |
|
|
0.02 |
|
||||||||
Gain on disposal of property, plant, and equipment, net (4) |
— |
|
|
(20.7) |
|
|
(20.7) |
|
|
(0.44) |
|
|
— |
|
|
(5.4) |
|
|
(5.4) |
|
|
(0.11) |
|
||||||||
Other adjustments (6) |
— |
|
|
0.2 |
|
|
0.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Tax effects of all adjustments (7) |
— |
|
|
— |
|
|
(1.0) |
|
|
(0.02) |
|
|
— |
|
|
— |
|
|
(1.3) |
|
|
(0.03) |
|
||||||||
As adjusted |
$ |
49.1 |
|
|
$ |
(4.5) |
|
|
$ |
(3.7) |
|
|
$ |
(0.08) |
|
|
$ |
47.9 |
|
|
$ |
(5.6) |
|
|
$ |
(21.2) |
|
|
$ |
(0.45) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Year ended |
||||||||||||||||||||||||||||||
|
January 1, 2021 |
|
December 27, 2019 |
||||||||||||||||||||||||||||
|
Gross profit |
|
Operating income(loss) |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. per diluted share |
|
Gross profit |
|
Operating income (loss) |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. |
|
Net income (loss) attributable to Fresh Del Monte Produce Inc. per diluted share |
||||||||||||||||
As reported |
$ |
250.9 |
|
|
$ |
76.5 |
|
|
$ |
49.2 |
|
|
$ |
1.03 |
|
|
$ |
306.4 |
|
|
$ |
114.1 |
|
|
$ |
66.5 |
|
|
$ |
1.37 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales claims due to vegetable product recall (1) |
(0.5) |
|
|
(0.5) |
|
|
(0.5) |
|
|
(0.01) |
|
|
6.0 |
|
|
6.0 |
|
|
6.0 |
|
|
0.12 |
|
||||||||
Other product-related charges (1), (2) |
33.6 |
|
|
33.6 |
|
|
33.6 |
|
|
0.71 |
|
|
5.2 |
|
|
5.2 |
|
|
5.2 |
|
|
0.11 |
|
||||||||
Asset impairment and other charges, net (3) |
— |
|
|
0.4 |
|
|
0.4 |
|
|
0.01 |
|
|
— |
|
|
9.4 |
|
|
9.4 |
|
|
0.19 |
|
||||||||
Gain on disposal of property, plant, and equipment, net (4) |
— |
|
|
(22.2) |
|
|
(22.2) |
|
|
(0.47) |
|
|
— |
|
|
(21.5) |
|
|
(21.5) |
|
|
(0.44) |
|
||||||||
Gain on settlement of litigation (5) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(16.0) |
|
|
(0.33) |
|
||||||||
Other adjustments (6) |
— |
|
|
0.7 |
|
|
0.7 |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Tax effects of all adjustments and other tax-related items (7) |
— |
|
|
— |
|
|
(6.4) |
|
|
(0.13) |
|
|
— |
|
|
— |
|
|
5.0 |
|
|
0.10 |
|
||||||||
As adjusted |
$ |
284.0 |
|
|
$ |
88.5 |
|
|
$ |
54.8 |
|
|
$ |
1.15 |
|
|
$ |
317.6 |
|
|
$ |
113.2 |
|
|
$ |
54.6 |
|
|
$ |
1.12 |
|
(1) |
During the fourth quarter and year ended December 27, 2019, the Company incurred a loss of |
|
(2) |
Other product-related charges for the quarter and year ended January 1, 2021 include inventory write-offs resulting from lower demand for certain of the Company's products due to the COVID-19 pandemic as well as incremental costs incurred for cleaning and social distancing protocols. These other product-related charges associated with COVID-19 were approximately |
|
(3) |
Asset impairment and other charges, net for the quarter ended January 1, 2021 primarily include (1) |
|
(4) |
Gain on disposal of property, plant and equipment, net for the quarter and year ended January 1, 2021 primarily related to gains on the sales of surplus land in Chile, a facility in the Middle East, and two facilities in North America which were partially offset by losses on asset disposals mainly in Central America. For the quarter ended December 27, 2019, gain on disposal of property, plant and equipment, net primarily related to gains on sale of underutilized tomato assets in North America. Additionally, the year ended December 27, 2019 also reflects additional sales of underutilized tomato assets in North America and the sale of a refrigerated vessel, partially offset by losses on asset disposals. |
|
(5) |
Gain on settlement of litigation for the year ended December 27, 2019 was |
|
(6) |
Other adjustments for the quarter and year ended January 1, 2021 include estimated trade receivable credit losses, reflected in selling, general, and administrative expenses, primarily relating to the Company's foodservice customer base as a direct result of the COVID-19 pandemic. |
|
(7) |
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 |
|
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 Company's fourth quarter and full year 2020 financial results. The webcast can be accessed on the Company’s Investor Relations home page at www.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 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 125 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.
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 (a) the Company’s plans and future performance, including beliefs regarding the Company's focus on value-added products and its ability to respond to shifts in delivery channels to drive future growth and (b) the efficiency and environmental benefits associated with the Company’s new container vessels. In this press release, these statements are preceded by, followed by or include the words “believes”, “expects”, “optimistic” or similar expressions with respect to various matters. These forward-looking statements are based on information currently available to the Company and the Company assumes no obligation to update these statements. 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 COVID-19 outbreak on our business, suppliers, customers, consumers, employees, and communities, (ii) disruptions or inefficiencies in our operations or supply chain, including any impact of the COVID-19 outbreak, (iii) the duration and spread of the pandemic and related government restrictions and our ability to maintain the safety of our workforce, (iv) our ability to successfully execute our plan to stabilize our core business, diversify our business and transform our business to a value-added business, particularly in light of COVID-19, (v) the impact of governmental trade restrictions, including adverse governmental regulation that may impact our ability to access certain markets, (vi) our anticipated cash needs in light of our liquidity and the impact of COVID-19 on our liquidity, (vii) the continued ability of our distributors and suppliers to have access to sufficient liquidity to fund their operations, (viii) 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; (ix) anticipated price and expense levels; (x) 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), which can destroy banana crops and was recently discovered in Latin America banana plantations, 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; (xi) our ability to improve our existing quarantine policies and other prevention strategies, as well as find contingency plans, to protect our and our suppliers’ banana crops from vascular diseases; disruptions or issues that impact our production facilities or complex logistics network; (xii) the impact of prices for petroleum-based products and packaging materials and the availability of sufficient labor during peak growing and harvesting seasons, (xiii) the impact of pricing and other actions by our competitors, particularly during periods of low consumer confidence and spending levels, (xiv) the impact of foreign currency fluctuations, (xv) our plans for expansion of our business (including through acquisitions) and cost savings, (xvi) our ability to successfully integrate acquisitions and new product lines into our operations, (xvii) the impact of impairment or other charges associated with exit activities, crop or facility damage or otherwise, (xvii) the timing and cost of resolution of pending and future legal and environmental proceedings or investigations, (xviii) the impact of changes in tax accounting or tax laws (or interpretations thereof), the impact of claims or adjustments proposed by the Internal Revenue Service or other taxing authorities in connection with our tax audits and our ability to successfully contest such tax claims and pursue necessary remedies, (xix) 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, (xx) damage to our reputation or brand names or negative publicity about our products, (xxi) exposure to product liability claims and associated regulatory and legal actions, product recalls, including the continuing impact of the 2019 Mann packing recall, or other legal proceedings relating to our business, (xxii) our ability to successfully implement our optimization program and to realize its expected benefits within the anticipated timeframe, (xxiii) our ability to successfully manage the risks associated with international operations, and (xxiv) our ability to be more efficient while reducing the carbon footprint of our container vessels. 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 any such forward-looking statements. The Company’s plans and performance may also be affected by the factors described in Item 1A. - “Risk Factors” in Fresh Del Monte Produce Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 25, 2020 and its Annual Report on Form 10-K for the year ended December 27, 2019, along with other reports that the Company has on file with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005210/en/
FAQ
What were Fresh Del Monte Produce's earnings per share for Q4 2020?
How did Fresh Del Monte Produce's net sales perform in 2020?
What was the impact of COVID-19 on Fresh Del Monte Produce in 2020?
Did Fresh Del Monte Produce declare any dividends in 2021?
What is the adjusted earnings per diluted share for Fresh Del Monte Produce for the full year 2020?
