How did Fresh Del Monte Produce (NYSE:FDP) perform in Q1 2026?

Fresh Del Monte Produce reported Q1 2026 net sales of $1.044 billion, a 4.9% decrease year-over-year. The decline was primarily driven by the divestiture of the Mann Packing business and a drop in avocado prices due to an industry-wide oversupply. Despite these challenges, the company’s gross margin improved slightly to 8.5%, and adjusted earnings per share (EPS) were $0.63.

What caused the decline in Fresh Del Monte’s revenue in Q1 2026?

The decline in revenue was mainly attributed to the strategic divestiture of the Mann Packing business in late 2025 and a significant drop in avocado prices caused by an oversupply in the global avocado market. These factors offset gains in other product categories, particularly bananas and pineapples.

How did the avocado market impact Fresh Del Monte’s performance in Q1 2026?

The avocado market had a major negative impact on Fresh Del Monte’s performance in Q1 2026, as an industry-wide oversupply led to lower per-unit selling prices. This resulted in a drop in revenue from avocados, which outweighed growth in other areas and contributed to the overall sales decline.

What challenges did Fresh Del Monte face in its poultry and meats division in Q1 2026?

In Q1 2026, Fresh Del Monte’s poultry and meats division faced slower demand, which affected its overall performance. Additionally, geopolitical tensions in the Middle East added to operational challenges, further complicating logistics and impacting the division’s performance.

How did geopolitical tensions affect Fresh Del Monte’s operations in Q1 2026?

Geopolitical tensions, particularly in the Middle East, disrupted supply chains, especially in the Strait of Hormuz, which increased operational complexities. These tensions likely contributed to slower demand in certain product categories and added to the company’s logistical challenges.

Fresh Del Monte earnings fall as oversupply, geopolitics weigh

Written by Brie CarterPublished May. 5 2026Last Updated May. 5 2026

Fresh Del Monte Produce (NYSE:FDP) saw its first-quarter revenue and earnings slide as the tropical fruit giant grappled with a global avocado surplus and geopolitical tensions that snarled logistics in the Middle East.

The Coral Gables, Florida-based company reported net sales of $1.044 billion for the quarter ended March 27, 2026, a 4.9% decrease compared to the prior-year period.

The decline was largely attributed to the strategic divestiture of the Mann Packing business in late 2025 and a sharp drop in avocado prices.

An industry-wide oversupply of avocados led to lower per-unit selling prices, offsetting gains in other categories.

Profitability also tightened, with gross profit falling to $89 million.

Beyond the avocado market, Fresh Del Monte faced headwinds in its poultry and meats division due to slower demand and the ongoing conflict in the Middle East.

Furthermore, supply chain disruptions in the Strait of Hormuz increased operational complexities, while a stronger Costa Rican colon negatively impacted exchange rate fluctuations.

Despite these pressures, the company’s gross margin improved slightly to 8.5%.

Performance was buoyed by higher selling prices for bananas and pineapples, as well as the initial contribution from its acquisition of Del Monte Foods in March 2026.

Net income for the quarter stood at $10 million, or $0.21 per diluted share.

On an adjusted basis, which excludes one-time asset impairment charges and other net costs, earnings per share were $0.63.

Operating income fell to $20.1 million, driven by higher impairment charges compared to the previous year, though adjusted operating income remained more resilient at $40.2 million.