Fresh Del Monte Produce Posts Mixed Q2 Earnings

Fresh Del Monte Produce Inc FDP reported second-quarter FY22 sales growth of 6% year-on-year to $1.21 billion, beating the consensus of $1.15 billion.
The company said price increases drove its sales growth.
Gross profit fell 26.6% Y/Y to $80.7 million, and the profit margin contracted 290 basis points to 6.7%.
The operating margin was 2.8%, and operating income for the quarter declined 42.2% to $34.3 million.
The company held $15.6 million in cash and equivalents as of July 1, 2022. The total debt of the company was $462.7 million.
Adjusted EBITDA of $55.7 million decreased 33.4% Y/Y.
Adjusted EPS of $0.43 missed the analyst consensus of $0.79.
On August 2, 2022, the company's Board declared a quarterly cash dividend of $0.15 per share, payable on September 9, 2022, to shareholders of record on August 17, 2022.
Price Action: FDP shares closed lower by 1.05% at $30.02 on Tuesday.