Fresh Del Monte Produce Reports Second Quarter FY2023 Earnings Results on August 2 2023
August 4, 2023
☀️Earnings Overview
On August 2 2023, FRESH DEL MONTE PRODUCE ($NYSE:FDP) reported their earnings results for the second quarter of FY2023, which ended on June 30 2023. Total revenue decreased by 2.6%, to USD 1180.5 million, compared to the same period in the prior year. However, net income rose significantly by 125.0%, reaching USD 47.7 million.
Market Price
The company’s stock opened at $28.2 and closed at $27.7, representing a 4.7% increase from its prior day closing price of $26.5. The earnings report was well received by investors and the company’s stock surged throughout the day. The solid performance was largely attributed to the company’s diversified portfolio and strong organic growth in the produce industry. The increased demand for fresh produce has been beneficial to the company as they continue to expand their presence across multiple markets.
Additionally, their focus on sustainability initiatives and cost efficiency has resulted in improved margins and strengthened their overall financial performance. The company’s leadership team is confident that the second quarter results reflect their dedication to excellence and are optimistic that these results will lead to a strong performance in the future quarters. They are continuing to invest in research and development to further increase their market share and remain competitive in the industry. Overall, the second quarter results show a positive outlook for FRESH DEL MONTE PRODUCE as they strive to become one of the leading providers of fresh produce in the world. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for FDP. More…
| Total Revenues | Net Income | Net Margin |
| 4.4k | 138.4 | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FDP. More…
| Operations | Investing | Financing |
| 99.4 | 49.7 | -119.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for FDP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.37k | 1.33k | 42.28 |
Key Ratios Snapshot
Some of the financial key ratios for FDP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.7% | 47.5% | 4.7% |
| FCF Margin | ROE | ROA |
| 1.3% | 6.5% | 3.8% |
Analysis
GoodWhale recently conducted an analysis of FRESH DEL MONTE PRODUCE’s wellbeing, and we were pleased to see a strong health score of 9 out of 10. This indicates that the company is capable of safely riding out any crisis without the risk of bankruptcy, thanks to its strong cashflows and debt. In terms of other metrics, our Star Chart showed that FRESH DEL MONTE PRODUCE is strong in dividend, medium in asset, profitability and weak in growth. Based on this analysis, we classify the company as ‘rhino’, meaning it has achieved moderate revenue or earnings growth. This type of company may be of interest to investors who are looking to invest in companies with strong dividend payouts and stability. The relatively low rate of growth may be attractive to those who are seeking a lower risk profile for their investments. Those looking for higher returns may prefer to look elsewhere. More…
Peers
Fresh Del Monte Produce Inc is one of the leading companies in the fresh fruit and vegetable industry. The company has a wide variety of products and services that are offered to their customers. They have a strong global presence and are constantly innovating to stay ahead of the competition. Some of their main competitors include Vilmorin & Cie, Apex Frozen Foods Ltd, Helio SA.
– Vilmorin & Cie ($LTS:0HJC)
Vilmorin & Cie is a French company that specializes in the breeding and distribution of seeds. The company has a market cap of 1.02B as of 2022 and a return on equity of 7.29%. Vilmorin & Cie has a long history, dating back to the 17th century, and is one of the oldest seed companies in the world. The company has a strong presence in Europe and North America, and is continuing to expand its operations globally.
– Apex Frozen Foods Ltd ($BSE:540692)
Apex Frozen Foods Ltd has a market cap of 8.79B as of 2022, a Return on Equity of 12.21%. The company is engaged in the business of processing and marketing frozen shrimp and fish products. Its products are sold in the United States, Europe, Japan and other Asian countries. The company has a strong presence in the frozen shrimp market with a market share of approximately 20%.
– Helio SA ($LTS:0LU6)
Helio SA is a publicly traded company with a market capitalization of 57.02 million as of 2022. The company has a return on equity of 11.55%. Helio SA is engaged in the business of providing environmental and engineering consulting services. The company was founded in 1997 and is headquartered in Santiago, Chile.
Summary
Investors showed a positive reaction to FRESH DEL MONTE PRODUCE’s second quarter earnings results for FY2023, released on August 2 2023. Despite total revenue dropping 2.6%, net income increased dramatically by 125.0%. This was reflected in the stock price, which moved up on the same day. Going forward, investors should pay close attention to the company’s operations, financials, and overall performance to determine whether or not to invest in the stock.
Additionally, they should keep abreast of any external economic trends that may affect the stock’s price.
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