Dole plc leader 'pleased' with Q1 2022 results
Given the global challenges in play, Dole plc executive chairman Carl McCann said he is pleased with the company’s first-quarter 2022 results.
Dublin-based Dole plc on May 24 reported net revenue of $2.2 billion and net income of $3.3 million for the three months ending March 31.
In 2021, Ireland-based Total Produce combined with Dole Food Co. to create Dole plc. The company’s stock has traded on the New York Stock Exchange as DOLE since July 30, 2021. In trading on May 25, a day after the quarterly report, the stock price increased 58 cents per share ( a single-day gain of 5.85%) to $10.49.
“We are pleased with the result that the group has delivered for the first quarter of 2022 particularly as we were impacted by the value-added salads recall and foreign currency translation movements in the quarter,” Carl McCann, executive chairman of Dole plc, said in a news release. “Our diversified business model has once more proven itself to be resilient.”
For the 2022 financial year, McCann said in the release that Dole is now targeting revenue in the range of $9.4 billion to $9.7 billion. Dole plc revenue for the first quarter increased to $2.2 billion from $1.1 billion, which the release said was primarily driven by the impact of revenue of Dole Food Co., following the acquisition by Dole plc.
On a pro forma comparative basis, the release said revenue decreased marginally, mostly because of a decrease in fresh vegetables resulting from the value-added salads product recall in January and February 2022, as well as negative foreign currency translation movements. Excluding the 16% reduction in revenues in fresh vegetables because of the impact of the value-added salads recall, revenue in all divisions actually increased by some 4%, company officials said in an earnings call with analysts.
Johan Linden, CEO of Dole plc said in the call with analysts that the company sees potential consolidation opportunities, as well “as strategic opportunities to develop in growth areas such as organic and controlled environment agriculture.”
“For our banana business, we expect the trend market dynamics to improve the long-term supply-demand balance within the industry,” Linden said on the call. “And across our business, we see opportunities as one of the largest player in our market to succeed in complicated situation and both win new businesses and make strategic acquisitions.”
He noted in the earnings call that Dole plc officially launched its special subdivision called Dole Exotics. That division has a focus on the growing, procuring, ripening, and marketing of avocados, mangoes, and other exotics primarily for the European market, he said.
“This is an exciting development that specifically brings together an existing Total Produce presence in the marketplace and complement it with additional sourcing opportunities from within Dole,” he said.
