Dole releases Q2 financial results, revises Adjusted EBITDA down for the year
Dole plc has released its financial results for the three and six months ended June 30 and revised its Adjusted EBITDA down by 5.5 percent for the year.
Carl McCann, Dole's Executive Chairman, said: “One year ago we created Dole plc, the global leader in fresh produce, following the merger of Total Produce and Dole Food Company. 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 our Fresh Vegetables segment and the translation impact from the strengthening U.S. Dollar, we are now targeting Adjusted EBITDA in the range of $330.0 million to $350.0 million for the full year, a reduction of approximately 5.5 percent from prior guidance.”
Revenue for the second quarter increased to $2.4 billion from $1.2 billion in the same period last year. This was primarily driven by the impact of revenue from Legacy Dole, Dole’s acquisition.
On a pro-forma comparative basis, revenue decreased by 4.2 percent or $102.3 million primarily due to negative foreign currency translation movements of $112.2 million and a net unfavorable impact of $68.8 million from acquisitions and divestitures.
On a like-for-like basis, revenue increased 3.2 percent or $78.7 million with growth in all segments with the exception of Fresh Vegetables.
In the Fresh Fruit segment, revenue for the quarter increased 3.5 percent or $27 million compared to pro-forma revenue for the same period last year.
Revenue was positively impacted by increased pricing in commercial cargo, increased pricing in North America for bananas and higher worldwide volumes and pricing in pineapples. This was partially offset by lower pricing in non-core markets for bananas.
Adjusted EBITDA for the quarter decreased 32.4 percent or $27.7 million compared to the prior year on a pro-forma basis. The prior year comparative had the benefit of strong market conditions due to tight supply conditions following hurricanes Eta and Iota in November 2020.
Additionally, adjusted EBITDA was negatively impacted by higher ocean and inland freight costs, higher costs in packaging, fertilizers and other materials, and a decrease in prices for volumes sold to non-core markets.
These higher costs were partially offset by higher pricing in core markets as well as strong performance in the commercial cargo business.
For fiscal year 2022, Dole is targeting a revenue in the range of $9.1 billion to $9.4 billion.
To read the full results, please click here.