Fresh Del Monte Produce Inc. today reported financial results for the second quarter ended July 2, 2021.
Financial highlights for the second quarter of 2021:
- Net sales increased 5% to $1,141.6 million for the second quarter of 2021, compared with $1,092.3 million in the prior-year period;
- Gross profit was $110.0 million for the second quarter of 2021, which represents an increase of 40%, compared with the prior-year period, and gross profit margin increased from 7.2% in the prior-year period to 9.6% in the second quarter of 2021;
- FDP net income for the second quarter of 2021 was $47.2 million, compared with $17.9 million in the prior-year period, and Diluted EPS was $0.99 for the second quarter of 2021, compared with $0.38 in the prior-year period;
- Adjusted Diluted EPS was $0.98 for the second quarter of 2021, compared with $0.54 in the prior-year period; and
- Adjusted EBITDA(3) was $83.6 million for the second quarter of 2021, compared with $63.5 million in the prior-year period.
“Our strong performance during the second quarter of 2021 reflects relaxed restrictions on social gatherings in some of our key markets, compared to the prior-year period,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “Our pineapple, fresh-cut fruit and prepared food products led sales and profitability growth, despite inflationary and cost pressures, which are expected to continue.”
Net sales for the second quarter of 2021 increased $49.3 million, or 5%, compared with the prior-year period. The increase in net sales was primarily driven by higher net sales in the Company's fresh and value-added products and other products and services business segments.
Gross profit for the second quarter of 2021 increased $31.3 million, or 40%, and Adjusted Gross profit(3), which excludes other-product related charges of $2.0 million, increased $22.7 million, or 25%, compared with the prior-year period. The overall increase in gross profit was partially offset by higher per unit fuel, labor, inland freight, packaging, production and procurement costs which were negatively impacted by inflationary market pressures and other unfavorable economic conditions, including lack of sufficient labor availability, in the second quarter of 2021. Gross margin increased 240 basis points from 7.2% in the second quarter of 2020 to 9.6% in the second quarter of 2021.
Operating income for the second quarter of 2021 increased $26.2 million, or 79%, and Adjusted Operating income(3) increased $16.9 million, or 39%, compared with the prior-year period. The increase in operating income was primarily due to higher gross profit, partially offset by higher selling, general and administrative expenses.
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For more information: freshdelmonte.com
