On Tuesday, Fresh Del Monte Produce Inc. (NYSE:FDP) posted first-quarter results that came in below Wall Street forecasts, with adjusted earnings per share of $0.63 missing the analyst consensus of $0.82 by $0.19. Revenue totaled $1.04 billion, also trailing the $1.05 billion estimate and marking a 4.9% decline from $1.10 billion a year earlier.
Shares of the company edged down 0.17% following the release.
The drop in revenue was largely attributed to the divestiture of its Mann Packing unit in the fourth quarter of 2025, along with softer avocado sales amid an industry-wide surplus that weighed on pricing.
These pressures were partly offset by the addition of Del Monte Foods, which the company acquired on March 19, 2026.
Gross profit fell to $89.0 million from $92.2 million year over year, although gross margin ticked up slightly to 8.5% from 8.4%.
“Our first-quarter results reflect disciplined execution across a complex operating environment, with the business demonstrating resilience as we continue to strengthen and expand our portfolio,” said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO. “Importantly, the quarter included the initial contribution following the closing of the Del Monte Foods acquisition, expanding our portfolio and strengthening our position across both the perimeter and center of the store.”
Operating income dropped to $20.1 million from $44.9 million in the same period last year, primarily due to $20.0 million in asset impairment and related charges tied to the Del Monte Foods acquisition.
On a GAAP basis, earnings per diluted share came in at $0.21, down from $0.64 in the first quarter of 2025.
Within its segments, revenue from fresh and value-added products declined to $549.0 million from $612.3 million, while banana segment revenue slipped to $357.1 million from $363.8 million.
The prepared foods division, now incorporating the newly acquired Del Monte Foods business, generated $82.5 million in revenue.
Fresh Del Monte also announced a quarterly cash dividend of $0.30 per share, scheduled to be paid on June 11, 2026.