August 04, 2021 CORAL GABLES, Fla.–(BUSINESS WIRE)–Fresh Del Monte Produce Inc. BB #:111187 today reported financial results for the second quarter ended July 2, 2021.
“Our strong performance during the second quarter of 2021 reflects relaxed restrictions on social gatherings in some of our key markets, compared to the prior-year period,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer.
“Our pineapple, fresh-cut fruit and prepared food products led sales and profitability growth, despite inflationary and cost pressures, which are expected to continue.”
Net sales for the second quarter of 2021 increased $49.3 million, or 5%, compared with the prior-year period. The increase in net sales was primarily driven by higher net sales in the Company’s fresh and value-added products and other products and services business segments.
Gross profit for the second quarter of 2021 increased $31.3 million, or 40%, and Adjusted Gross profit(3), which excludes other-product related charges of $2.0 million, increased $22.7 million, or 25%, compared with the prior-year period.
The overall increase in gross profit was partially offset by higher per unit fuel, labor, inland freight, packaging, production and procurement costs which were negatively impacted by inflationary market pressures and other unfavorable economic conditions, including lack of sufficient labor availability, in the second quarter of 2021.
Gross margin increased 240 basis points from 7.2% in the second quarter of 2020 to 9.6% in the second quarter of 2021.
Operating income for the second quarter of 2021 increased $26.2 million, or 79%, and Adjusted Operating income(3) increased $16.9 million, or 39%, compared with the prior-year period. The increase in operating income was primarily due to higher gross profit, partially offset by higher selling, general and administrative expenses.
Fresh and Value-Added Products
Net sales for the second quarter of 2021 increased $37.8 million, or 6%, compared with the prior-year period, mainly due to higher net sales of pineapples, fresh-cut fruits and fresh-cut vegetables as a result of less restrictions on social gatherings in certain key markets which had a positive impact on demand when compared to the prior-year period. Partially offsetting the increase were decreases in net sales of non-tropical fruit and avocados.
Banana
Net sales for the second quarter of 2021 decreased $2.9 million, or 1%, compared with the prior-year period, principally due to lower net sales in the Middle East, and to a lesser extent in North America, partially offset by higher net sales in Europe and Asia.
Gross profit for the second quarter of 2021 increased $7.7 million, or 20%, compared with the prior-year period, primarily driven by North America and Europe. Gross margin increased 180 basis points from 9.1% in the second quarter of 2020 to 10.9% in the second quarter of 2021. Gross profit in the same period last year included $1.6 million of inventory write-offs caused by the COVID-19 pandemic.
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. Fresh Del Monte Produce is traded on the NYSE under the symbol FDP. To learn more about the company, sign up for alerts at http://investorrelations.freshdelmonte.com/overview/default.aspx
Contacts
Christine Cannella
Vice President, Investor Relations
305-520-8433
