Fresh produce giant Dole plc has announced third quarter results that were "ahead of expectations", according to executive chairman Carl McCann.
Revenue for the three months to September 30 increased to $2.3 billion (€2.22 billion), up from $.19 billion (€1.15 billion), with this increase largely driven by the impact of revenue from Legacy Dole following the acquisition by Dole plc, the group said.
On a pro-forma basis, revenue was down by 1.7%, due to negative foreign currency movements of $136.8 million (€132.2 million), and an impact of $17.9 million from acquisitions and mergers.
On a like-for-like basis, however, revenue rose by 5.0%.
'Significantly Ahead Of Previous Year'
“We are pleased with the strong results delivered for the third quarter of 2022, which were significantly ahead of the prior year and ahead of our own expectations," McCann said.
"The broad diversification of our product offering, and the wide geographic footprint of our vertically integrated business provides us with a strong foundation for continued growth."
Adjusted EBITDA for the the three month period rose to $73 million, while on a pro-forma comparative basis, adjusted EBITDA was 25.7% higher, due to higher pricing of bananas and a strong performance in its commercial cargo business.
For its full 2022 fiscal year, Dole is targeting adjusted EBITDA at the lower end of its range of $330 million to $350 million, as well as revenue in the range of $9.1 billion to $9.4 billion.
'The global economic environment remains dynamic, and we are currently seeing positive trends, along with some further challenges, as we progress through the final quarter of this financial year,' the group said.
Previous Guidance
"As we move towards the end of the financial year, we are now targeting adjusted EBITDA within our previously guided range but at the lower end," McCann added.
"Our talented and dedicated people are our greatest asset, and we thank them for their significant contributions during the past year.”
Analyst Comment
Commenting on Dole's third-quarter results, analyst Roland French of Davy said, "Dole’s Q3 EBITDA print was modestly ahead of expectations, underpinned by a strong performance in the North American banana business. On an underlying basis, Diversified Europe profits were flat year-on-year (yoy), with the Americas and Rest of World (RoW) unit negatively impacted by a difficult Chilean grape season. The Vegetables segment remains challenged by the earlier listeria recall and lower value-added salads volumes.
"Full-year 2022 guidance calls for EBITDA at the lower end of the $330-350m range, which implies an $8m (c.2.4%) cut to our forecasts."
© 2022 European Supermarket Magazine – your source for the latest fresh-produce news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
