Q1 2026 Fresh Del Monte Produce Inc Earnings Call Transcript
Key Points
- Del Monte Corp (FDP) successfully closed the acquisition of Del Monte Foods, bringing the brand under a single owner for the first time in nearly four decades.
- The acquisition is expected to contribute $600 million to net sales and approximately $23 million to adjusted EBITDA in 2026.
- The company reported an increase in gross margin to 8.5% and adjusted gross margin to 8.7%.
- Del Monte Corp (FDP) maintained a disciplined cost management approach, achieving an adjusted EBITDA of $58 million with a margin of 6%.
- The company declared a quarterly cash dividend of $0.30 per share, reflecting a dividend yield of approximately 3%.
- The conflict in the Middle East has introduced significant cost pressures, impacting energy, shipping, and commodity input costs.
- Net sales were negatively affected by lower sales in the fresh and value-added product segment, particularly due to an oversupply in the avocado product line.
- Gross profit was impacted by lower selling prices in the poultry and meats business and higher production costs in the prepared food segment.
- The company faces higher per-unit production and distribution costs across segments, affecting gross margins.
- The acquisition of Del Monte Foods increased long-term debt to $438 million, up from $173 million at year-end.
Good day, everyone, and welcome to Fresh Del Monte's Produce First Quarter 2026 Conference Call.
(operator instructions)
Thank you. For opening remarks and introductions, I would like to turn today's call over to the Vice President Investor Relations, with Fresh Del Monte Produce, Ms Christine Cannella. Please go ahead, Ms Cannella.
Thank you, Krista. Good day, everyone, and thank you for joining our first-quarter 2026 conference call. Joining me in today's discussion are Mr. Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer, and Ms. Monica Vicente, Senior Vice President and Chief Financial Officer.
I hope that you have had a chance to review the press release that was issued earlier by a business wire. You may also visit the company's IR website at investorrelations.freshdelmonte.com to access today's earnings material and to register for future distribution.
This conference call is being webcast live on our website and will be available for
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