Dole sees Q3 revenue and net income growth

Dole has reported its third quarter (Q3) financial results, noting year-on-year growth in revenue and net income.

Revenue for the three-month period increased 4.2 per cent to just over US$2bn, primarily due to a strong performance in the diversified EMEA segment, offset partially by the diversified Americas and fresh fruit segments.

Net income stood at US$54m, up 15.9 per cent, while adjusted EBITDA rose 7.6 per cent to US$85.2m.

However, adjusted net income fell US$3.6m to a total US$22.6m, attributed to higher interest expense and tax expense, offset by the increases in adjusted EBITDA and lower depreciation.

In the fresh fruit segment, revenue decreased 0.3 per cent, or US$2.1m, negatively impacted by lower banana prices in North America, partially offset by higher worldwide volumes of bananas sold, an increase in worldwide pricing of pineapples and stronger pricing of bananas in Europe.

Fresh fruit adjusted EBITDA decreased 8.6 per cent, or US$4.3m, hit by lower revenue, higher fruit sourcing costs and a decrease in commercial cargo activity. Dole said that this was partially offset by lower shipping and logistics costs, as well as by strong pricing excluding the impact of fuel surcharges.

“We are very pleased that our momentum from the first half of the year has continued into the third quarter,” said executive chairman Carl McCann. ”We delivered another strong set of results, with revenue growth of 4.2 per cent and Adjusted EBITDA growth of 7.6 per cent.

“As we move towards the end of the financial year, our strong result for the first nine months positions us to deliver a good result for the year and we are now targeting adjusted EBITDA for 2023 of at least US$365m.

”Once again, we would like to extend our appreciation to all of our people across the group for their dedication and efforts in delivering these results,” he added.

In its outlook for the full year of 2023, Dole said it was ”very pleased” with the its performance in the first nine months of the year, delivering US$308.3m of adjusted EBITDA.

”While the wider macro-environment continues to remain complex and impacts from weather events remain unpredictable, we remain confident in the strength of our diversified supply base and the experience and quality of our operating teams across the globe to deal with challenges as they arise,” the company outlined.

”Overall, our strong results for the first nine months position us well to deliver a good result for the year and we are now targeting Adjusted EBITDA for 2023 of at least $365m.”