The company stated that in Q1/21 gross profit increased by $36.5 million (53%) to $105.0 million, versus $68.5 million in Q1/20. During the same corresponding period adjusted gross profit also increased by $30.1 million, which was 39% higher than results in the prior year's quarter.
The firm further reported that Q1/21 net income increased by 228% to $42.7 million, or $0.90 per diluted earnings per share (EPS), compared with $13.0 million, or $0.27 per diluted EPS in Q1/20.
Fresh Del Monte's Chairman and CEO Mohammad Abu-Ghazaleh commented "Despite slightly lower net sales resulting from the continued impact of COVID-19 restrictions on our foodservice customers and the reduced supply of fruit due to the two hurricanes in Guatemala in Q4/20, we generated strong results...We remained focused on creating greater efficiencies and controlling costs throughout our operations."
The company advised that Q1/21 net sales decreased by $29.7 million to $1.088.3 million, compared to $1,118.0 million in Q1/20. The firm noted that the decrease was mostly due to lower net sales in its fresh and value-added and banana business segments, though it was offset somewhat by higher sales in other products and services.
Fresh Del Monte explained that in general the decrease was largely attributable to the ongoing negative effect of the COVID-19 pandemic on its foodservice distribution channel, which accounted for about $19.4 million of the $29.7 million decrease in Q1/21. The company added that hurricanes Eta and Iota that hit Guatemala drastically impacted its crop production areas during Q4/20.
Fresh Del Monte Produce is a global producer, distributor and marketer of fresh and fresh-cut fruit and vegetables, juices, beverages, healthy snacks and prepared foods. The company sells its products throughout the world under the DEL MONTE® brand (under license from Del Monte Foods, Inc.). In addition, the company markets products under the MANNTM brand. The firm specifically noted, however, that "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 Ltd., Del Monte Canada, or Del Monte Asia Pte. Ltd." The company is engaged in sourcing, transportation and marketing of fresh and fresh-cut produce together with prepared food products in Europe, Africa and the Middle East.
Fresh Del Monte began the day with a market cap of around $1.4 billion with approximately 47.4 million shares outstanding and a short interest of about 1.6%. FDP shares opened 10% higher today at $31.83 (+$2.97, +10.29%) over yesterday's $28.86 closing price and reached a new 52-week high price this morning of $33.96. The stock has traded today between $30.85 and $33.96 per share and closed at $34.63 (+$5.73, +19.83%).[NLINSERT]
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