Yahoo Finance

Fresh produce company Fresh Del Monte (NYSE:FDP) fell short of the market’s revenue expectations in Q1 CY2025, with sales flat year on year at $1.10 billion. Its non-GAAP profit of $0.63 per share was 2.4% above analysts’ consensus estimates.

Is now the time to buy Fresh Del Monte Produce? Find out in our full research report.

Fresh Del Monte Produce (FDP) Q1 CY2025 Highlights:

• Revenue: $1.10 billion vs analyst estimates of $1.12 billion (flat year on year, 1.8% miss)

• Adjusted EPS: $0.63 vs analyst estimates of $0.62 (2.4% beat)

• Adjusted EBITDA: $61.3 million vs analyst estimates of $66.3 million (5.6% margin, 7.5% miss)

• Operating Margin: 4.1%, up from 2.7% in the same quarter last year

• Free Cash Flow Margin: 3.3%, up from 0.5% in the same quarter last year

• Market Capitalization: $1.66 billion

"We kicked off 2025 with continued momentum, building on the progress we made last year. In the first quarter, demand once again exceeded supply in our fresh and value-added products segment, highlighting the strength of our position in this key segment,” said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh.

Company Overview

Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.

Sales Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $4.27 billion in revenue over the past 12 months, Fresh Del Monte Produce carries some recognizable products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.

As you can see below, Fresh Del Monte Produce struggled to increase demand as its $4.27 billion of sales for the trailing 12 months was close to its revenue three years ago. This shows demand was soft, a rough starting point for our analysis.

This quarter, Fresh Del Monte Produce missed Wall Street’s estimates and reported a rather uninspiring 0.9% year-on-year revenue decline, generating $1.10 billion of revenue.

We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.