Dole plc issues quarterly report, describes strong results
Mixed industry trends led to mixed results for Dole plc in the quarter ending Sept. 30.
For the quarter ending Sept. 30, Dublin-based Dole Plc reported revenue was down 0.8% due to lower volumes of bananas in North America and lower banana pricing in Europe, in addition to lower pricing for pineapples in North America.
The company said those factors were offset in part by higher pricing in North America for bananas, volume growth in pineapples in North America and in Europe, as well as growth in commercial cargo revenues due to higher freight rates.
The financial statement contains the results of Total Produce for the first seven months to July 29, 2021 (including equity earnings from Total Produce's 45% shareholding in Dole Food Co.) plus the combined results of Total Produce and Dole Food Co. from July 29 to Sept. 30.
"Dole plc has delivered a strong performance for the first nine months of 2021 in the context of inflationary pressures acrossour North American and European markets during the third quarter," Carl McCann, executive chairman of Dole Plc, said in the release. "With industry wide supply chain congestion and labor shortages, our diversified business model has proven itself to be responsive and resilient. We are very pleased with the response of our divisions and people in the face of these challenges and are confident in our ability to meet our full year outlook.”
According to a news release, the highlights for the three months ending Sept. 30 and nine months of calendar year 2021 include:
- Merger of Total Produce plc and Dole Food Co. to form Dole plc;
- IPO of Dole plc on July 30, 2021, raising net proceeds of $398.9 million;
- Completed $1.4 billion debt refinancing;
- Strong results delivered within a complex economic environment;
- Diversified business model and wide geographic footprint provide resilience
- Dividend of $0.08 per share declared for the quarter;
- Full year pro-forma revenue target $9.2 billion - $9.4 billion; and
- Full year pro-forma adjusted earnings target $390 million - $400 million.
For the year
Dole reported revenue for the first nine months of 2021 increased 2.7% due to higher banana pricing in North America and higher pineapple pricing across all markets as well as growth in commercial cargo, partially offset by lower banana volumes in all markets.
Fresh vegetable revenue for the first nine months of 2021 increased 4.3% due to higher volumes and pricing in the value-added salads business, driven by strong market demand and a better mix of products sold.
That, according to the company, was partially offset by revenue declines in the fresh packed vegetables business caused by oversupply within this category impacting pricing.
Adjusted earnings for fresh vegetables the first nine months decreased 84.8% compared with year ago levels, primarily due to the inflationary impact on input costs and some specific one-off production issues in the value-added salads business, according to the company.
