Dole posts “satisfactory” 2022 results despite challenging operating conditions

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Dole posts “satisfactory” 2022 results despite challenging operating conditions

Dole plc released its fourth quarter and full 2022 year results, which it describes as a "satisfactory full-year financial report." 

The result showed that fresh fruit revenues increased by 5.9% year-on-year, mainly driven by higher worldwide pricing of bananas and higher commercial cargo revenues.

For fresh vegetables in particular, full-year results showed revenue increased by 5.8%, or $74.7 million, on a Pro-forma comparative basis. Revenue was impacted by lower volumes following the packaged salads recall and plant suspension at the outset of 2022 and the planned reduction of fresh-packed vegetable volumes.

However, the full-year group results show that revenues decreased by $56.8 million, a 0.6% drop year-on-year. 

Net income dropped by 34.9%, which represented a $49.2 million decrease, on a Pro-forma comparative basis, predominantly due to the decrease in Adjusted EBITDA and higher interest expense.

Outlook for 2023

The company anticipates 2023 as one with big opportunities and new challenges with improvements in the global supply chain and signs of moderating inflation. 

It says the big challenge appears to be weather conditions, especially in Spain and Northern Africa, with cold temperatures which have been challenging for Northern European importers. 

“Overall, for full-year 2023, we believe our business is well positioned for growth. While forecasting in the current environment is complex, we are targeting a full-year Adjusted EBITDA of $350.0 million. This target assumes no contribution from the Fresh Vegetables division,” said the company in the report. 

In terms of capital expenditure, the report indicates that they ascended to $98 million and included investments in farm renovations and greenhouse projects across growing regions. 

The acquisition of an additional farm in Peru and ongoing investments in information technology, logistics, and efficiency projects in warehouses and processing facilities were also part of the expenditures.

The company recently announced that on January 30, 2023, they entered into a Stock Purchase Agreement with Fresh Express Acquisitions LLC, a wholly-owned subsidiary of Chiquita Holdings Limited, pursuant to which Fresh Express has agreed to acquire Dole’s Fresh Vegetables division for approximately $293.0 million in cash.

The transaction is expected to close after regulatory approvals are obtained, subject to the satisfaction or waiver of customary closing conditions.

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