Dole plc reports gains in revenue and profit for Q2
Dublin-based Dole plc reported gains in revenue and income for the financial quarter ending June 30, according to a news release.
Dole’s second-quarter revenue of $2.1 billion was an increase of 4.4%, with second-quarter net income at $52.3 million, an increase of 8.1%, the release said.
Second-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $122.7 million, an increase of 9.7%, according to the release.
“We are very pleased with the strong result for the second quarter, delivering adjusted EBITDA growth of 9.7%,” Carl McCann, executive chairman of Dole, said in the release. “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 million.”
In the second quarter, Dole’s revenue increased 4.4%, or $90.3 million, primarily due to strong performance in the Fresh Fruit and Diversified Europe Middle East and Africa segments, offset partially by the Diversified Americas segment, the release said.
For fresh fruit, Dole plc revenue increased 4.1%, or $33.2 million, the release said.
Revenue was positively impacted by higher worldwide pricing of bananas and pineapples and worldwide increases in volumes of bananas sold, partially offset by lower volumes of pineapples sold, the company said.
Adjusted EBITDA increased 16.9%, or $9.5 million, positively impacted by strong revenue performance, partially offset by higher fruit sourcing costs and higher costs of shipping, packaging and handling, as well as by lower commercial cargo activity, the release said.
In its diversified fresh produce segment, Dole’s revenue increased 7.7%, or $65.8 million, primarily driven by inflation-justified price increases across the segment and a positive impact from acquisitions of $15.9 million, the release said.
McCann said that Dole has seen the benefit of improved logistical efficiencies in several areas, which has brought more stability to its core fruit business.
“Partially offsetting this benefit has been the anticipated reduction in commercial cargo activity,” he said. “As we look out into the second half of the year and towards 2024, there is the potential for disruption in many of the key growing regions in Central and South America due to the onset of El Niño climatic conditions.”
McCann said that Dole is monitoring the changing weather patterns closely and expects to be able to handle potential challenges using its diverse sourcing network and advanced farming practices.
“While the macro-economic environment remains difficult to predict, in our business we have seen positives such as the strengthening euro relative to the U.S. dollar, more open supply chains, and moderation of inflation for certain input costs,” he said. “However, we do continue to be impacted by higher interest rates and other foreign currency movements.”
