Shares of Fresh Del Monte Produce (FDP) plummeted 7.82% during Tuesday's intraday session, marking a significant downturn for the produce distributor.

The sharp decline followed the company's release of its first-quarter fiscal 2026 results, which showed diluted earnings per share falling to $0.21 from $0.64 a year earlier. Net sales dropped 4.9% to $1.04 billion, driven primarily by the strategic divestiture of its Mann Packing business and lower per-unit selling prices in its avocado product line due to industry-wide oversupply.

Operating income also declined substantially, impacted by $20 million in asset impairment and other charges, while gross profit was negatively affected by supply chain disruptions in the Strait of Hormuz, the Middle East conflict, and higher production costs. The company's long-term debt increased significantly following its acquisition of Del Monte Foods assets in March.