Dole signals ‘strong’ start to the year as earnings rise 9%

Dublin-headquartered Dole increased revenues 1 per cent to $2 billion (€1.85 billion) in the first quarter, a period in which it agreed to sell its fresh vegetables division.

The fresh produce distribution company’s adjusted earnings before interest, tax and write-offs (EBITDA) rose 9.3 per cent to $100.4 million in the period. Its adjusted net income arrived at $32.3 million and its adjusted diluted earnings per share was $0.34.

[ Dole sees profit shrink by 37% after challenging year for vegetable division ]

Dole announced in January its deal to sell the fresh vegetables division to Fresh Express for $293 million, with the results of this division reported separately as discontinued operations in its quarterly statements.

The company is continuing to work through the regulatory process for the sale, executive chairman, Carl McCann, said.

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Dole, which is now the largest supplier of fresh fruit and vegetables in the world, was created when Total Produce, originally a spin-off of Irish fruit company Fyffes, completed the acquisition of Dole Foods in July 2021.

“We are pleased to have started the year strongly and to have delivered adjusted EBITDA growth in the first quarter,” said Mr McCann.

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“We believe the group is well-positioned for growth and continue to target adjusted EBITDA of $350 million for the full year.”

Dole said a cybersecurity incident in February this year, triggered by ransomware, had a limited impact on its operations overall but was disruptive for its fresh vegetables and Chilean businesses, in particular. Direct costs related to the incident were $10.5 million of which $4.8 million related to continuing operations.

It said the operating environment to date in 2023 “continues to bring with it both new opportunities and new challenges”. The opportunities relate to signs of improved logistical efficiencies, the strengthening of the euro relative to the dollar, stability in fuel prices and indications that inflation is moderating in certain areas.

The challenges include “unprecedented” rainfall in California and its impact on vegetable and berry crops in the region, as well as heightened interest rates and other unusual currency movements.