Dole shows top-line growth driven by strong performance in its diversified Americas business, but profitability came under pressure from elevated fruit sourcing costs
Dole has revealed its results for the second quarter of the year (Q2), recording higher year-on-year revenue and a bottom line hit by higher fresh fruit sourcing costs.
Revenue increased 2.9 per cent to just under US$2.5bn, primarily due to positive operational performance in the Diversified Fresh Produce – Americas & ROW segment and a favourable impact from foreign currency translation of US$30.3mn.
Gross profit, however, decreased US$23mn, hit by higher cost of sales which were impacted by higher fruit sourcing costs in the Fresh Fruit segment.
The group’s operating income dropped by US$55.7mn due to lower gross profit, higher SMG&A expenses – primarily due to a non-recurring charge associated with the settlement of a historical legal matter and some restructuring costs – and higher gains on asset sales in the prior year following the sale of land in Hawaii.
Net Income increased to US$35.1mn from US$18mn in the prior year, while adjusted EBITDA decreased 14.8 per cent to US$116.8mn.
Dole’s adjusted net income fell 17.7 per cent to US$43.7mn.
“The successful completion of the Ecuador port sale post quarter end for net proceeds of approximately US$95mn supports our continued investment in growth opportunities, including recent acquisitions in EMEA,” said executive chairman Carl McCann.
”We are pleased to deliver a second quarter result in line with our expectations.
”The quarter once again demonstrated the resilience of our diversified business model and our ability to navigate a challenging operating environment as we target full-year adjusted EBITDA of approximately US$400mn for 2026,” he added.
