Dole's Q3 performance hit by Fresh Vegetables segment challenges
Dole's third-quarter financial results were hit by challenges in its Fresh Vegetable segment, according to Ireland-based Total Produce.
In July this year, Total Produce completed a 45% acquisition of Dole's issued share capital for US$300 million.
In an announcement today, the company said that Dole's adjusted EBITDA for the quarter was registered at US$45.4 million compared to US$50.1 million last year.
It said this reflected a US$7.4 million EBITDA reduction in Fresh Vegetables.
"Dole Fresh Vegetables has been affected by an industry-wide safety notice, not directly linked to Dole, and an oversupply resulting in lower pricing," Total Produce said.
"As previously announced, this also reduced Dole’s first-half EBITDA by c.US$30m, prior to the investment by Total Produce."
However, Total Produce said that Dole's fresh fruit division performed "strongly".
In addition, during the third quarter, Dole sold its corporate headquarters for US$50 million and recognized a net gain of US$7.3 million, which is not included in the above adjusted EBITDA.
Local media reported the sale of the 10-acre headquarters in September. The California corporate campus, located in Los Angeles County, was sold to the Conrad N. Hilton Foundation, according to the LA Business Journal.