The price increases, which go into effect on Nov. 1, will be levied on bananas (including organics and plantains), pineapples and fresh-cut fruit. The company did not say by how much those prices will be raised.
|FDP||FRESH DEL MONTE||26.49||-0.81||-2.97%|
"Despite our efforts to mitigate these increasing costs within our supply chain, they are simply too great to absorb. The unparalleled costs have been persistent and show no signs of regulating," said Fresh Del Monte Produce CEO Mohammad Abu-Ghazaleh. "After thoughtful consideration, it is necessary to implement inflation-justified price increases in an effort to maintain our continuous supply and service levels."
Thursday’s announcement comes after the Coral Gables, Florida-based producer said in August that it was reviewing its pricing strategy for the remainder of the year due to the inflation in labor, fuel, inland freight, packaging, production and procurement costs.
Abu-Ghazaleh, at the time, warned there were no signs of "inflationary and cost pressures ending in the near future."
Investors will receive an update on how inflation impacted Fresh Del Monte Produce’s business in the three months through July 2 when the company releases its third-quarter results prior to the market’s opening on Nov. 3.
Analysts surveyed by Refinitiv are expecting adjusted earnings of 35 cents per share on revenue of $1.044 billion.
Fresh Del Monte Produce shares were up 38% this year through Wednesday, compared with the S&P 500’s 21% gain.