Fresh Del Monte’s first quarter results were met with a negative market reaction, as revenue came in below Wall Street’s expectations and remained flat year over year. Management cited several operational factors, including solid demand in fresh produce categories, improved product mix, and continued efficiency in its vertically integrated supply chain. CEO Mohammad Abu-Ghazaleh emphasized resilience in core products, especially pineapples, which continued to see demand outpace supply. The company also noted challenges in the banana segment related to lower sales volumes and unfavorable exchange rates, partially offset by stronger performance in value-added and fresh-cut fruit offerings.
Is now the time to buy FDP? Find out in our full research report (it’s free).
Fresh Del Monte Produce (FDP) Q1 CY2025 Highlights:
- Revenue: $1.1 billion vs analyst estimates of $1.12 billion (flat year on year, 1.8% miss)
- Adjusted EPS: $0.63 vs analyst estimates of $0.62 (2.4% beat)
- Adjusted EBITDA: $61.3 million vs analyst estimates of $66.3 million (5.6% margin, 7.5% miss)
- Operating Margin: 3.9%, up from 2.6% in the same quarter last year
- Market Capitalization: $1.57 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Fresh Del Monte Produce’s Q1 Earnings Call
- Mitch Pinheiro (Sturdivant & Co.) asked about demand trends amidst consumer pressures. CEO Mohammad Abu-Ghazaleh said demand for fresh produce remains stable, noting the company’s affordable positioning and operational flexibility.
- Mitch Pinheiro (Sturdivant & Co.) inquired about the impact of tariffs and whether costs are being passed on. Abu-Ghazaleh explained that Fresh Del Monte collaborates with buyers to mitigate tariff effects, aiming to minimize impact on consumers.
- Mitch Pinheiro (Sturdivant & Co.) questioned avocado segment performance. Abu-Ghazaleh reported solid growth and emphasized diversification of sourcing as key to future expansion in this category.
- Mitch Pinheiro (Sturdivant & Co.) asked about fresh-cut capacity and margin sustainability. Abu-Ghazaleh expressed confidence in stable or improving margins, citing efficiency gains and strong demand for new products like fresh guacamole.
- Mitch Pinheiro (Sturdivant & Co.) sought clarity on the pineapple supply-demand balance. Abu-Ghazaleh attributed tight supply to rising consumption and highlighted the value and health benefits driving continued demand.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace and profitability of value-added product expansion, especially in avocado oil and fresh-cut categories, (2) the company’s ability to navigate external challenges such as tariffs and shipping disruptions, and (3) trends in core categories like pineapples and bananas, including both supply and consumer demand shifts. Progress in waste reduction and sustainability initiatives will also be key indicators of strategic execution.
Fresh Del Monte Produce currently trades at $32.72, down from $34.80 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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