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Fresh Produce

Dole Delivers 'Strong Results' In Q2, Revenue Doubles

Dole plc has doubled its revenue to $2.4 billion (€2.4 billion) in the second quarter of its financial year, from $1.2 billion (€1.2 billion) in the same period last year.

The company noted that this growth was primarily driven by the impact of its merger with Total Produce.

On a like-for-like basis, revenue increased 3.2%, or $78.7 million, with all segments witnessing growth except its Fresh Vegetables division.

On a pro-forma basis, the company’s revenue decreased by 4.2%, or $102.3 million, due to negative foreign currency translation movements of $112.2 million and a net unfavourable impact of $68.8 million from acquisitions and divestitures.

'Strong Results'

Carl McCann, executive chair of Dole plc, said, “One year ago we created Dole plc, the global leader in fresh produce, following the merger of Total Produce and Dole Food Company.

“The enhanced scale and diversification of our vertically integrated business enabled us to deliver strong results for the second quarter of 2022, in line with our expectations.”

Adjusted EBITDA for the three months ended June 30 increased to $108.8 million from $94.9 million in the same period last year.

On a pro-forma comparative basis, adjusted EBITDA decreased 24.1%, or $34.5 million, due to a decline in the Fresh Fruit segment against a
very strong comparative in the prior year.

Adjusted net income for the quarter amounted to $41.3 million from $29.2 last year.

Divisional Performance

The Fresh Fruit unit reported a 3.5% increase in revenue, boosted by increased pricing in commercial cargo, increased pricing in North America for bananas and higher worldwide volumes and pricing in pineapples.

Revenue in the diversified fresh produce unit in the EMEA declined by 10.7%, or $102.0 million.

On a like-for-like basis, revenue grew 8.1%, or $77.1 million across the division, driven by increased pricing and significant revenue
growth in South Africa, the company noted.

Revenue in the diversified fresh produce segment in the Americas and ROW increased 5.7%, or $24.2 million, on a pro-forma basis.

The company attributed this growth to strong performance in the potato, onion and avocado categories, as well as a recovery in Chilean grape volumes after weather impacted volumes in the same quarter last year.

The Fresh Vegetables unit saw a revenue decline of 6.9%, or $23.0 million, on a proforma basis as it was impacted by lower volumes of value-added salad products

Outlook

The company expects revenue in the range of $9.1 billion to $9.4 billion for its financial year 2022.

It has reduced its full-year adjusted EBITDA target by approximately 5.5%, to a range of $330.0 million to $350.0 million, citing a slower than anticipated return to full operating profitability in the Fresh Vegetables unit and negative foreign currency translation impact.

© 2022 European Supermarket Magazine. Article by Dayeeta Das. For more fresh produce news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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