NEW YORK - Fresh Del Monte Produce Inc. (NYSE:FDP) saw its stock surge 3% after reporting third-quarter earnings that handily beat analyst expectations, driven by strong performance in its fresh and value-added products segment.
The fruit and vegetable producer posted adjusted earnings per share of $0.77, significantly exceeding the analyst consensus of $0.47. Revenue for the quarter came in at $1.02 billion, topping estimates of $989.45 million.
Fresh Del Monte's fresh and value-added products segment was a key driver of the strong results, with net sales increasing to $623.7 million compared to $574.0 million in the prior-year period. The company cited higher sales volume and increased per unit selling prices, particularly for avocados and pineapples, due to strong market demand.
Gross profit for the quarter rose to $93.8 million from $74.4 million a year ago, with gross margin expanding to 9.2% from 7.4%. The improvement was primarily attributed to higher sales volume and prices in the fresh and value-added segment, partially offset by higher production and procurement costs.
"We are pleased to report strong performance in the third quarter. Our strategic focus on high-margin, value-added products continues to deliver positive results," said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh.
The company's banana segment saw net sales decline to $345.3 million from $384.7 million, due to lower sales volume in North America and Asia.
Fresh Del Monte maintained its quarterly cash dividend of $0.25 per share, payable on December 6 to shareholders of record on November 14.
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