Dole plc reports quarterly revenue of $2.4B
Despite lower volumes for value-added salads, Dublin-based Dole plc has reported strong results for the three and six months ending June 30.
“One year ago, we created Dole plc, the global leader in fresh produce, following the merger of Total Produce and Dole Food Co.,” Carl McCann, executive chairman, said in a news release. “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.”
Due to a slower than anticipated return to full operating profitability in the company’s fresh vegetables segment and the translation impact from the strengthening U.S. dollar, McCann said in the release that its full-year projections for earnings before interest, taxes, depreciation and amortization will range between $330 million to $350 million. That is a reduction of 5.5% from previous guidance, McCann said in the release.
Revenue for the three months ended June 30 increased to $2.4 billion from $1.2 billion, according to the release. That jump was primarily driven by the impact of revenue from Legacy Dole following the acquisition by Dole plc.
Revenue was helped by increased pricing in commercial cargo, increased pricing in North America for bananas and higher worldwide volumes and pricing in pineapples, according to the release. That was offset by lower pricing in noncore markets for bananas.
In addition, strong revenue was noted with good performance in the potato, onion and avocado categories, as well as a recovery in Chilean grape volumes after weather impacted volumes in the prior year quarter, according to the release. However, the release said revenue was negatively impacted by lower volumes of value-added salad products due to lost volumes following the value-added salad recalls in December 2021 and January 2022, as well as lower industry demand.
The company said revenue was also impacted by a planned decrease in volumes in fresh-packed vegetable products. Those declines were partially offset by price increases in value-added salads products, and significantly stronger pricing in fresh-packed vegetable products supported by the reduced volume strategy, the release said.
