Fresh Del Monte Q1 EPS Miss by $0.19 as Sales Drop 4.9%
FDP•Fresh Del Monte’s Q1 adjusted EPS was $0.63 on $1.04B revenue, missing forecasts by $0.19 and $10M and reflecting a 4.9% sales drop after the Mann Packing divestiture and avocado surplus. GAAP EPS slid to $0.21 following $20M impairment from the Del Monte Foods acquisition, and $0.30 dividend was declared.
1. Q1 Earnings and Revenue
Fresh Del Monte reported adjusted Q1 EPS of $0.63 and revenue of $1.04 billion, missing analyst forecasts by $0.19 per share and $10 million in sales. Revenue declined 4.9% year-over-year, driven by the sale of its Mann Packing unit and lower avocado prices due to industry surplus.
2. Operating Income and Margins
Operating income fell to $20.1 million from $44.9 million in the prior year, primarily reflecting $20 million in asset impairment and related acquisition charges. Gross profit decreased to $89.0 million from $92.2 million, though gross margin ticked up to 8.5% from 8.4%.
3. Acquisition Impact and Dividend
Segment revenues saw fresh and value-added sales of $549.0 million and banana sales of $357.1 million, while the prepared foods division—including Del Monte Foods—generated $82.5 million. The board approved a $0.30 per share quarterly cash dividend payable on June 11, underscoring confidence post-acquisition.
