Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Del Monte — Q3 2023 Earnings Presentation
23 slides from Fresh Del Monte Produce's earnings presentation, Nov 1, 2023
Slide 1: Q3 2023 Earnings Call Presentation
Q32023 Earnings Call Presentation November 1, 2023 1
Slide 2: Mohammad Abu-Ghazaleh, Chairman & CEO; Monica Vicente, SVP, CFO
Mohammad Abu-Ghazaleh Monica Vicente Chairman & CEO SVP, CFO
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation and the related earnings call contain certain forward-looking statements regarding the intent, beliefs or current expectations of the Company. These statements include statements that are preceded by, followed by or include the words “believes”, “expects”
Slide 4: Agenda
AGENDA • Business Update • Q3 & Nine Months Financial Results • Q&A 4
Slide 5: Business Update
BUSINESS UPDATE Delivered strong nine-month results despite macroeconomic challenges and escalating weather events in the third quarter, demonstrating our ability to run a profitable, global enterprise in the face of large-scale challenges Nine months 2023 financial highlights: o Adjusted gross
Slide 6: Business Update
BUSINESS UPDATE • “Lunchables with Fresh Fruit” continues to test in the market • Unveiled two salad kits with global restaurant chain, PF Chang’s • Tricont, our inland logistics solution, underwent a rebrand this year • Joined Upcycled Food Associations which helps companies find ways to maximize u
Slide 7: Q3 2023 Financial Results
Q32023 FINANCIAL RESULTS
Slide 8: Q3 & YTD 2023 Financial Results
Q3 & YTD 2023 FINANCIAL RESULTS NET SALES GROSS PROFIT Q3: $74M vs. $88M PY Q3: $1.0B vs. $1.1B PY YTD: $288M vs. $259M PY YTD: $3.3B vs. $3.4B PY • Q3: lower sales volume across most products, a stronger • Q3: driven by lower sales volume in the fresh and value- added product segment and a decrease
Slide 9: Fresh and Value-Added Products
FRESH AND VALUE-ADDED PRODUCTS NET SALES COMMENTARY $600 • Net sales $574 • Lower sales volume of non-tropical fruit, pineapple, fresh-cut fruit, fresh-cut vegetables and prepared foods • Partially offset by higher per unit selling prices of non-tropical fruit, fresh-cut fruit and pineapple product
Slide 10: Banana
BANANA NET SALES COMMENTARY $385 $388 • Net sales decreased primarily a result of lower selling prices and sales volume in North America mostly offset by higher sales volume and per unit selling prices in Europe • Gross profit increased 41% due to lower distribution, ocean freight, and product costs
Slide 11: Other Products & Services
OTHER PRODUCTS & SERVICES NET SALES $65 $44 COMMENTARY • Lower net sales of third-party freight services due to softened global demand • Lower gross profit due to lower net sales of third-party freight Q3 2023 Q3 2022 services GROSS PROFIT $10 $6 Q3 2023 Q3 2022 11
Slide 12: Selected Financial Data
SELECTED FINANCIAL DATA
Slide 13: Q3 2023 Selected Financial Results
Q3 2023 SELECTED FINANCIAL RESULTS SG&A Other Expense, Net $48M vs. $47M PY $7M vs. $9M PY Interest Expense Income Tax Provision $6M vs. $6M PY $4M vs. $3M PY Net Cash Provided by Operating Activities Adj. Leverage Ratio* $180M vs. $106M PY 1.34x vs. 1.42x Q2 2023 Long-Term Debt Capital Spending $41
Slide 14: Q&A
Slide 15: Appendix: Non-GAAP Reconciliations
APPENDIX NON-GAAP RECONCILIATIONS 15
Slide 16: Reconciliations of Non-GAAP Financial Measures, Third Quarter 2023
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Third Quarter 2023 The Company's results are determined in accordance with U.S. generally accepted accounting principles (GAAP). Certain information presented reflects adjustments to GAAP measures such as am
Slide 17: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 18: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 19: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 20: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 21: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 22: Trailing Twelve Months Leverage Ratio Q3 2023
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Trailing Twelve Months Leverage Ratio Q3 2023 (U.S. dollars in millions) - Unaudited Trailing Twelve Months September 29, Q4 2022 Q1 2023 Q2 2023 Q3 2023 2023 Net income attributable to Fresh Del Monte Produ
Slide 23: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES