Fresh produce company Fresh Del Monte (NYSE:FDP) announced better-than-expected revenue in Q1 CY2026, but sales fell by 4.9% year on year to $1.04 billion. Its non-GAAP profit of $0.63 per share was 1.6% above analysts’ consensus estimates.
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Fresh Del Monte Produce (FDP) Q1 CY2026 Highlights:
- Revenue: $1.04 billion vs analyst estimates of $1.03 billion (4.9% year-on-year decline, 1.3% beat)
- Adjusted EPS: $0.63 vs analyst estimates of $0.62 (1.6% beat)
- Adjusted EBITDA: $58.4 million vs analyst estimates of $57.6 million (5.6% margin, 1.4% beat)
- Operating Margin: 1.9%, down from 3.9% in the same quarter last year
- Free Cash Flow Margin: 2.8%, similar to the same quarter last year
- Market Capitalization: $1.92 billion
“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.
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.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
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’s demand was weak over the last three years. Its sales fell by 1.3% annually, a poor baseline for our analysis.
This quarter, Fresh Del Monte Produce’s revenue fell by 4.9% year on year to $1.04 billion but beat Wall Street’s estimates by 1.3%.
Looking ahead, sell-side analysts expect revenue to decline by 1.8% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and indicates its newer products will not accelerate its top-line performance yet.
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Cash Is King
Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills.
Fresh Del Monte Produce has shown mediocre cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 3.9%, below what we’d expect for a consumer staples business.
Fresh Del Monte Produce’s free cash flow clocked in at $29.7 million in Q1, equivalent to a 2.8% margin. This cash profitability was in line with the comparable period last year but below its two-year average. In a silo, this isn’t a big deal because investment needs can be seasonal, but we’ll be watching to see if the trend extrapolates into future quarters.
Key Takeaways from Fresh Del Monte Produce’s Q1 Results
It was good to see Fresh Del Monte Produce narrowly top analysts’ revenue expectations this quarter. We were also happy its EBITDA narrowly outperformed Wall Street’s estimates. On the other hand, its adjusted operating income missed and its gross margin fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock remained flat at $40.35 immediately following the results.
Big picture, is Fresh Del Monte Produce a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).