Fresh Del Monte Produce, Inc. · NYSE:FDP
Fresh Del Monte Produce — Del Monte — Q1 2023 Earnings Presentation
21 slides from Fresh Del Monte Produce's earnings presentation, May 3, 2023
Slide 1: Q1 2023 Earnings Call Presentation
Q12023 Earnings Call Presentation May 3, 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: Business Update, Q1 2023 Financial Results, Q&A
• Business Update • Q1 2023 Financial Results • Q&A 4
Slide 5: Business Update
BUSINESS UPDATE Q1 2023 HIGHLIGHTS COMMENTARY • Strong Gross Profit and Gross Margin Gross Profit $97 million • Foreign exchange rates and interest rates posed Gross Margin 8.6% significant headwinds • Upgraded capacity of 6 container ships by 10% • Bulk-cut produce, new form of fresh-cut products •
Slide 6: Strategic Focus Remains on Track
STRATEGIC FOCUS REMAINS ON TRACK PROTECT & GROW DRIVE INNOVATION EVOLVE OUR BECOME A BECOME A LEAD THROUGH OUR CORE AND EXPAND CULTURE TO TECHNOLOGY CONSUMER SUSTAINABILITY BUSINESS GROWTH ON INCREASE EMPLOYEE DRIVEN COMPANY DRIVEN COMPANY FOR A BRIGHTER VALUE-ADDED ENGAGEMENT & TO DRIVE WORLD TOMOR
Slide 7: Q1 2023 Financial Results
Q12023 FINANCIAL RESULTS
Slide 8: Q1 2023 Financial Results
Q1 2023 FINANCIAL RESULTS NET SALES ADJ. GROSS PROFIT* $1.129B -1% vs. $1.137B PY $99M vs. $90M PY • Lower volumes, lower per unit selling prices of • Higher per unit selling prices across most product avocados, and negative fluctuations in foreign categories combined with lower distribution costs e
Slide 9: Fresh and Value-Added Products
FRESH AND VALUE-ADDED PRODUCTS NET SALES COMMENTARY $673 $643 • Net sales decreased compared with the prior-year period • Lower per unit selling prices of avocados due to market volatility • Lower sales volume in fresh-cut vegetables, prepared foods and vegetables • Offset by higher per unit selling
Slide 10: Banana
BANANA COMMENTARY • Net sales increased 5% primarily driven by higher per unit selling prices in most regions and higher sales volume in North America and Europe • Adjusted gross profit increased driven by higher per unit selling prices, partially offset by higher procurement, production and ocean f
Slide 11: Other Products & Services
OTHER PRODUCTS & SERVICES NET SALES $58 $60 COMMENTARY • Higher net sales of third-party ocean freight services • Lower adjusted gross profit due to higher costs Q1 2022 Q1 2023 ADJ. GROSS PROFIT* $8 $7 Q1 2022 Q1 2023 11 *Non-GAAP financial measure. Reconciliations and other information required by
Slide 12: Selected Financial Data
SELECTED FINANCIAL DATA
Slide 13: Q1 2023 Selected Financial Results
Q1 2023 SELECTED FINANCIAL RESULTS SG&A Other Expense, Net $48M vs. $45M PY $9M vs. $4M PY Interest Expense, Net Income Tax Provision $8M vs. $5M PY $10M vs. $6M PY Operating Cash Flow Capital Spending $16M vs. ($0.3M) PY $10M vs. $11M PY Long Term Debt Dividend Payout Increase in quarterly cash div
Slide 14: Q&A
Slide 15: Appendix: Non-GAAP Reconciliations
APPENDIX NON-GAAP RECONCILIATIONS 15
Slide 16: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES First 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: Trailing Twelve Months Leverage Ratio Q1 2023
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Trailing Twelve Months Leverage Ratio Q1 2023 (U.S. dollars in millions) - Unaudited Trailing Twelve Months Q2 2022 Q3 2022 Q4 2022 Q1 2023 March 31, 2023 Net income attributable to Fresh Del Monte Produce I
Slide 21: Reconciliations of Non-GAAP Financial Measures
FRESH DEL MONTE PRODUCE INC. AND SUBSIDIARIES RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES