FDP - Fresh Del Monte posts big bottom line beat despite inflation impact

Fresh Del Monte Produce ( NYSE: FDP ) notched a very big bottom line beat on Wednesday despite adverse macroeconomic conditions.

For the third quarter, total revenue of $1.05B narrowly eclipsed estimates while $0.54 in earnings per share blew away expectations of just $0.10. The latter also showed significant growth from the report of just one cent in EPS marked a year prior. The increase in profits was credited to higher net sales, partially offset by foreign currency impacts.

"We delivered solid performance across our business generating strong net sales and profitability despite continued macroeconomic headwinds," CEO Mohammad Abu-Ghazaleh said. "Our team’s efforts enabled us to thrive this quarter in the face of wide-range challenges, including persistent inflation, geopolitical risks, and volatility in the fuel market

He added that the company is continuing to investment “higher-margin product offerings in the ready-to-eat and convenience category and an investment in blockchain-driven traceability technology" for the quarters moving forward.

Despite the beat, shares of the Florida-based fruit giant fell 1.88% in premarket trading on light volume.

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