Fresh Del Monte Produce Inc. Reports Strong Second Quarter 2022 Net Sales Amidst Unprecedented Cost Pressures

Rhea-AI Summary

Fresh Del Monte Produce Inc. (NYSE: FDP) reported second quarter 2022 financial results with net sales of $1,211.9 million, a 6% increase year-over-year. However, gross profit decreased to $80.7 million from $110 million, reflecting cost pressures, particularly from inflation and supply chain issues. Net income fell to $21.2 million from $47.2 million, with diluted EPS at $0.44. The company declared a quarterly dividend of $0.15 per share. Despite challenges, Fresh Del Monte emphasizes ongoing commitment to sustainable growth and maintaining operational cash flows.

Positive

• Net sales increased by $70.3 million or 6% year-over-year.
• Quarterly dividend raised to $0.15 per share from $0.10.

Negative

• Gross profit declined to $80.7 million, down from $110 million year-over-year.
• Net income dropped to $21.2 million from $47.2 million in the same quarter last year.
• Adjusted EBITDA decreased to $55.7 million from $83.6 million.

CORAL GABLES, Fla.--(BUSINESS WIRE)-- 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:

1. Are used by investors to measure a company's comparable operating performance;
2. Are financial measurements that are used by lenders and other parties to evaluate creditworthiness; and
3. 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

Source: Fresh Del Monte Produce Inc.

FAQ

What were Fresh Del Monte's earnings for the second quarter of 2022?

Fresh Del Monte reported a net income of $21.2 million for Q2 2022.

How did Fresh Del Monte's sales perform in the second quarter of 2022?

Net sales increased by $70.3 million, or 6%, year-over-year.

What was the diluted EPS for Fresh Del Monte in Q2 2022?

The diluted EPS for Q2 2022 was $0.44.

What challenges did Fresh Del Monte face in Q2 2022?

The company faced cost pressures due to inflation and supply chain issues.

What is the stock ticker for Fresh Del Monte?

The stock ticker for Fresh Del Monte is FDP.