Food group Dole records ‘strong’ second quarter as earnings rise 9.7%

Dublin-headquartered Dole plc saw revenue increase by 4.4 per cent in the second quarter of the year, with earnings growing by 9.7 per cent.

The fresh produce distribution company saw its adjusted earnings before interest, tax and depreciation and amortisation (Ebitda) rise by 9.7 per cent to $122.7 million (€112 million) for the quarter, an increase of $10.9 million, which the company attributed to a “strong fresh fruit performance, offset partially by headwinds in the diversified Americas segment”.

The company recorded a $4.1 million decrease in adjusted net income to $48.4 million, “predominantly due to higher interest expense” in the quarter. Adjusted diluted earnings per share was $0.51, down from $0.55 in the same quarter last year.

Dole is the largest supplier of fresh fruit and vegetables in the world. It was created after Irish-based Fyffes spin-out Total Produce acquired Dole Food Company in 2021 and is headquartered in Dublin.

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The company announced a deal to sell its fresh vegetables division for $293 million to Fresh Express in January of this year, with revenue from this division being reported separately in its quarterly statements.

Carl McCann, executive chairman of Dole plc, said the company was “very pleased with the strong result for the second quarter delivering adjusted Ebitda growth of 9.7 per cent”.

“As we progress through the second half of the year, our performance for the first six months gives us confidence in achieving our targeted adjusted Ebitda for the full year of at least $350.0 million,” he said.

The company recorded $122.7 million adjusted Ebitda in the second quarter of the year, reaching $223 million adjusted Ebitda for the year to date.

Dole said it was “pleased” with its performance for the first half of the year and said they had “seen the benefit of improved logistical efficiency”, which had led to better stability in its core fruit business. The company said this improvement was partially diminished by an “anticipated reduction in commercial cargo activity”.

Looking forward, the company said there is potential for disruption to its supply-chain in central and South America due to El Niño climatic conditions, expected to significantly increase rainfall in those areas. Dole said it was “well placed” to deal with this potential challenge due to its “diverse sourcing network” and “advanced farming practices”.