Fresh Del Monte Produce Q2 Earnings Call Highlights

Del Monte Foods exceeded expectations in its first full quarter under Fresh Del Monte ownership, leading management to raise its 2026 outlook to $625 million in sales and $35 million in adjusted EBITDA. Fresh Del Monte reported second-quarter sales of $1.22 billion, up 3% year over year, with adjusted EPS of $0.72 and adjusted EBITDA of $72 million. The company reaffirmed its full-year adjusted sales-growth target of 13% to 15% and EBITDA guidance of $230 million to $240 million. The company is closing four underperforming Costa Rican banana farms, representing about 5% of local banana production, and plans to repurpose some land for higher-margin pineapple cultivation. It also expanded its credit facility to $900 million, maintained its $0.30 quarterly dividend and repurchased $16 million of stock.

Fresh Del Monte Produce NYSE: FDP said its newly acquired Del Monte Foods business delivered profitable performance in its first full quarter under company ownership, prompting management to raise its 2026 sales and adjusted EBITDA outlook for the prepared-foods unit. During the company’s second-quarter 2026 earnings call, Chairman and Chief Executive Officer Mohammad Abu-Ghazaleh said the company is now operating as Del Monte Corporation following its acquisition of Del Monte Foods in March. He characterized the combination as creating two complementary businesses: the company’s global fresh-produce operations and a shelf-stable prepared-foods platform with higher margins, longer shelf life and established brand loyalty.

“By the end of the second quarter, I’m proud to announce that our Foods division delivered profitable performance,” Abu-Ghazaleh said, adding that the business has established an operational base for its planned growth strategy.

Senior Vice President and Chief Financial Officer Monica Vicente said the company now expects Del Monte Foods to generate 2026 net sales of $625 million and adjusted EBITDA of $35 million. Those projections were raised from prior expectations for $600 million in sales and $23 million in adjusted EBITDA. Vicente said the company has undertaken pricing actions, product-portfolio changes and trade-spending optimization initiatives that are expected to contribute about $9 million in annual margin expansion as they are phased in during 2026 and 2027. Management cited improved service levels, product-line rationalization and logistics work among the early accomplishments at Del Monte Foods. Abu-Ghazaleh said the business had addressed issues including service levels and product shortages, reaching on-time delivery performance of 95% or more. The company is also pursuing further efficiencies in storage and warehousing over the next 12 months. The company said it expects to introduce certain new products toward the end of 2026, with additional launches anticipated in 2027. Abu-Ghazaleh pointed to a planned packaged Pinkglow pineapple product as one example of potential collaboration between the fresh and prepared-foods businesses, saying it could reach the market within several months.

For the second quarter, Vicente reported net sales of $1.22 billion, up 3% from a year earlier. On an adjusted basis, net sales increased 9%. Gross profit was $121 million, representing a 9.9% gross margin. Adjusted operating income was $49 million. Adjusted net income was $34 million. Adjusted diluted earnings per share were $0.72. Adjusted EBITDA was $72 million, or a 6% margin. For full-year 2026, the company expects adjusted net sales growth of 13% to 15% and adjusted EBITDA between $230 mi...