Fresh Del Monte misses profit and sales expectations, but boosts dividend by 33%

FFresh Del Monte Produce Inc. (FDP) reported Wednesday first-quarter profit and sales that were below Wall Street estimates, as lower avocado prices and weakness in its fresh and value-added products business offset strength in banana sales. The banana and fresh products company's stock was still inactive in the premarket. Net income rose to $39.0 million, or 81 cents a share, from $25.8 million, or 54 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share were flat at 55 cents but missed the average estimate of two analysts surveyed by FactSet of 60 cents. Sales fell 0.7% to $1.13 billion, below the average FactSet estimate of $1.16 billion. Fresh and value-added sales declined 4.4% to $643.4 million, due to lower avocado prices and a decrease in sales of fresh-cut vegetables, prepared foods and vegetables. Banana sales grew 4.7% to $425.1 million due to higher prices and increased sales volume in North America and Europe. Separately, the company declared a quarterly dividend of 20 cents a share, 33% from 15 cents a share in the first quarter, with the new dividend payable on June 9 to shareholders of record on May 17. The stock has rallied 9.1% year to date while the S&P 500 has gained 7.3%.

-Tomi Kilgore

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05-03-23 0631ET

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