Fresh Del Monte Produce Inc. (FDP) announced their financial results for the fourth quarter of 2021 with net income of $18.3 million, or 38 cents a share, compared to a loss of $11.2 million, or 24 cents a share, in the same quarter of the previous year. The adjusted per-share earnings came to 45 cents, which was higher than the FactSet consensus of a loss of 4 cents. Sales for the quarter were recorded at $1.040 billion, a slight decline from the $1.018 billion recorded in the same quarter of the previous year, but still higher than the FactSet consensus of $1.034 billion.
Chief Executive Mohammad Abu-Ghazaleh commented on the results, stating that the company had closed out the year in a stronger position than 2021. He attributed the sales growth to “inflation-justified” per unit price increases, which were partially offset by lower sales volume, mostly in the banana and fresh and value-added products segments, as well as the strong dollar.
Banana sales rose by 9% to $32.9 million, while fresh and value-added product sales decreased by 4% to $21.8 million due to lower sales of avocados and non-tropical fruit, which were affected by lower prices and volumes. Despite the decline in sales, the stock has still gained 1.7% in the last 12 months. This is in contrast to the performance of the S&P 500 (SPX) which has fallen by 2.00% in the same period.
Fresh Del Monte Produce Inc. is a leading grower and distributor of fresh fruits and vegetables. The company has been in business since 1886 and is headquartered in Coral Gables, Florida. It is one of the largest global producers and marketers of fresh and value-added fruits and vegetables, and is a leader in the production and sale of bananas, pineapples, melons, tomatoes, and other fresh produce.
Fresh Del Monte’s operations are based on a vertically integrated business model, which allows it to control the entire production process from planting to harvesting and packing, as well as the distribution of its products. The company operates in more than 90 countries, and its products are sold in supermarkets, wholesalers, and foodservice distributors.
In addition to its core business of fresh produce, Fresh Del Monte also produces and sells prepared foods, including salads, juices, and snacks. It also produces and sells pet food and animal feed. The company has a strong presence in the Middle East, Europe, and Asia, and has recently expanded its operations into Latin America.
Fresh Del Monte has a long-term strategy of focusing on innovation and sustainability in order to meet the changing needs of its customers. It has invested heavily in research and development, and has developed a range of products that meet the needs of different markets. The company has also taken steps to reduce its environmental footprint, such as reducing its water and energy consumption, and investing in renewable energy sources.
Fresh Del Monte Produce Inc. is well-positioned to continue to grow and expand its business in the coming years. Its strong presence in the global fresh fruit and vegetable market, combined with its focus on innovation and sustainability, will ensure that it remains a leader in the industry. The company’s long-term strategy of focusing on innovation and sustainability, combined with its strong financial position, will ensure that it continues to be a successful and profitable business.