Full-year forecast revised downward due to slower recovery of Fresh Vegetables segment and impact of strengthening dollar
Dole has posted its results for the second quarter of 2022. Revenue for the three months ended 30 June, 2022 increased to US$2.4bn from US$1.2bn. This was primarily driven by the impact of revenue from Legacy Dole following the acquisition by Dole plc.
Compared on a pro-forma basis, revenue decreased by 4.2 per cent or US$102.3m, due principally to negative foreign currency translation movements of US$112.2m and a net unfavourable impact of US$68.8m from acquisitions and divestitures.
On a like-for-like basis, revenue increased 3.2 per cent or US$78.7m with growth in all segments with the exception of Fresh Vegetables.
Adjusted EBITDA for the three months ended 30 June increased to US$108.8m. On a pro-forma comparative basis, adjusted EBITDA decreased 24.1 per cent or US$34.5m primarily due a decline in the fresh fruit segment against a very strong comparative in the prior year, when tight supply following hurricanes Eta and Iota in November 2020 created strong market conditions.
In addition, the negative impact of currency translation of US$4.2m, primarily on the reported results of the Diversified EMEA segment, and a loss in the Fresh Vegetables segment, contributed to the lower group adjusted EBITDA.
This was offset in part by stronger performance in Diversified Americas and on a like-for-like basis in Diversified EMEA.
Adjusted net income for the three months ended 30 June was US$41.3m, compared to US$66.5m on a proforma basis. The decreases on a pro-forma comparative basis were predominantly due to the decreases in adjusted EBITDA noted above, offset in part by a lower tax expense.
Commenting on the results, executive chairman Carl McCann 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 US dollar, we are now targeting adjusted EBITDA in the range of US$330m to US$350m for the full year, a reduction of approximately 5.5 per cent from prior guidance.
“We greatly appreciate the achievements of our talented and dedicated people and their significant contributions during the past year.”