Slide 1: Q2 2023 Earnings Call Presentation
Q22023 Earnings Call Presentation August 2, 2023 1
Slide 2: Presenters: Chairman & CEO and 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 • Q2 2023 Financial Results • Q&A 4
Slide 5: Business Update
BUSINESS UPDATE • Net income more than doubled • Gross profit and gross margin increased • Continued focus on assets optimization • Banana and pineapples performed very well in the second quarter • Strong demand for Honeyglow® and Pinkglow® which contributed to margin improvements in the fresh and v
Slide 6: Business Update
BUSINESS UPDATE • 2023 SEAL Business Sustainability award for our reduction in greenhouse gas emissions • Shortlisted for World Sustainability Award for Del Monte Zero™ • Pinkglow® pineapple demand has outpaced supply; sales doubling versus prior-year period • Honeyglow® pineapple demand increased;
Slide 7: Partnership
KraftHeinz, PARTNERSHIP FRESH CLEMENTINES z
Slide 8: Q2 2023 Financial Results
Q22023 FINANCIAL RESULTS
Slide 9: Q2 2023 Financial Results
Q2 2023 FINANCIAL RESULTS NET SALES GROSS PROFIT $1.18B vs. $1. 21B PY $117M +45% vs. $81M PY • Lower per unit pricing of avocados due to market • Lower product and distribution costs in the fresh and conditions and lower sales volume of non-tropical fruit value-added products segment and higher ban
Slide 10: Fresh and Value-Added Products
FRESH AND VALUE-ADDED PRODUCTS NET SALES COMMENTARY $732 $678 • Net sales • Lower per unit selling price of avocados due to market conditions • Lower sales volume of non-tropical fruit • Partially offset by higher net sales of pineapple, fresh-cut fruit, vegetables, and melons due to higher per unit
Slide 11: Banana
BANANA NET SALES COMMENTARY $422 $449 • Net sales increased $27 million or 6% primarily driven by higher per unit selling prices in Europe and North America and higher sales volume in Asia, Europe and North America • Gross profit increased to $51 million or 127% driven by higher net sales and lower
Slide 12: Other Products & Services
OTHER PRODUCTS & SERVICES NET SALES $58 $54 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 Q2 2022 Q2 2023 services GROSS PROFIT & GROSS MARGIN $20 18.0% $18 16.0% 15.6% $16 14.0% $14 12.0%
Slide 13: Selected Financial Data
SELECTED FINANCIAL DATA
Slide 14: Q2 2023 Selected Financial Results
Q2 2023 SELECTED FINANCIAL RESULTS SG&A Other Expense, Net $47M vs. $47M PY $6M vs. $3M PY Net Interest Expense Income Tax Provision $6M vs. $6M PY $11M vs. $5M PY Net Cash Provided by Operating Activities Adj. Leverage Ratio* $133M vs. $95M PY 1.34x vs. 1.84x Q1 2023 Long Term Debt Capital Spending
Slide 15: Q&A
Slide 16: Appendix: Non-GAAP Reconciliations
APPENDIX NON-GAAP RECONCILIATIONS 16
Slide 17: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Second 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 a
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: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
Slide 23: Trailing Twelve Months Leverage Ratio Q2 2023
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Trailing Twelve Months Leverage Ratio Q2 2023 (U.S. dollars in millions) - Unaudited Trailing Twelve Months Q3 2022 Q4 2022 Q1 2023 Q2 2023 June 30, 2023 Net income attributable to Fresh Del Monte Produce In
Slide 24: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES