Benzinga | Aug 4, 2021 09:18AM EDT

Fresh Del Monte Produce Q2 Earnings Tops Estimates, Hikes Dividend

* Fresh Del Monte Produce Inc (NYSE:FDP) reported second-quarter FY21 net sales growth of 4.5% year-on-year, to $1.14 billion, versus the analyst consensus of $1.15 billion.

* The sales growth was driven by higher net sales of pineapples, fresh-cut fruits, and fresh-cut vegetables.

* Gross profit rose 40% Y/Y to $110 million, and the profit margin expanded 240 basis points to 9.6%.

* The operating margin was 5.2%, and operating income for the quarter rose 79% to $59.3 million.

* The company held $19.6 million in cash and equivalents as of July 2, 2021. The total debt of the company was $473.5 million.

* Adjusted EBITDA of $83.6 million increased 31.7 Y/Y.

* Adjusted EPS of $0.98 beat the analyst consensus of $0.83.

* "Our strong performance during the second quarter of 2021 reflects relaxed restrictions on social gatherings in some of our key markets, compared to the prior-year period," said Chairman and CEO Abu-Ghazaleh.

* On August 3, 2021, the company's Board declared a quarterly cash dividend of $0.15 per share, payable on September 10, 2021, to shareholders of record on August 18, 2021. This represents an increase of $0.05 from the $0.10 dividend paid on June 11, 2021.

* Price action: FDP shares closed higher by 1.96% at $31.28 on Tuesday.