Dole plc reported its financial results for the first quarter of 2024, ending March 31. The company, headquartered in Dublin, announced a significant increase in both revenue and net income, showcasing a strong performance across all segments.
Dole’s revenue for the quarter was $2.1 billion, marking a 6.6% increase compared to the previous year. Net income soared to $65.4 million, reflecting a remarkable 219.5% increase from the same period in 2023. Adjusted EBITDA also saw a notable rise, reaching $110.1 million, a 9.7% increase from the previous year. Additionally, the company reported an adjusted net income of $40.6 million and an adjusted diluted EPS of $0.43.
One of the quarter’s highlights was the completion of the sale of Dole’s 65% equity stake in Progressive Produce. This transaction brought in gross proceeds of $120.3 million and resulted in a gain of $74 million. The net proceeds from this sale were used to reduce the company’s long-term debt by $100 million, bringing the net debt to $776 million by the end of the quarter.
According to the press release, Carl McCann, Executive Chairman of Dole plc, expressed satisfaction with the company’s strong performance, emphasizing the 6.6% revenue growth and the 9.7% increase in adjusted EBITDA. He highlighted the strategic move of selling the equity stake in Progressive Produce, which significantly bolstered the company’s financial position.
McCann stated, “Our strong start to the year positions us well to deliver another good result in 2024. For the full year, we are maintaining our target to deliver Adjusted EBITDA in line with 2023 on a like-for-like basis. Adjusting for the sale of Progressive Produce, this implies an Adjusted EBITDA target of at least $360 million.”
The company detailed several key financial metrics in their unaudited financial highlights for the three months ending March 31, 2024, compared to the same period in 2023. Revenue increased from $1.989 billion to $2.121 billion, while income from continuing operations rose from $35 million to $71.5 million.
Net income attributable to Dole plc surged from $14.2 million to $70.1 million, and diluted EPS from continuing operations jumped from $0.30 to $0.80. Diluted EPS overall increased from $0.15 to $0.74. Adjusted EBITDA rose from $100.4 million to $110.1 million, and adjusted net income grew from $32.3 million to $40.6 million, with adjusted diluted EPS increasing from $0.34 to $0.43.
In the Fresh Fruit segment, revenue grew by 3.2% or $25.3 million, driven by higher worldwide volumes of bananas and pineapples and an increase in worldwide pineapple pricing. Adjusted EBITDA for this segment saw a slight increase of 0.3%, or $0.2 million, primarily due to higher volumes and lower fruit sourcing costs, despite lower pricing and decreases in commercial cargo.
The Diversified Fresh Produce – EMEA segment experienced a 7.0% increase in revenue, amounting to $55.5 million. This growth was attributed to strong performance in Ireland, the U.K., and Northern Europe, favorable foreign currency translation, and a net positive impact from acquisitions.
Adjusted EBITDA in this segment rose by 10.9%, or $2.6 million, largely due to strong performance in Northern Europe and South Africa and a favorable currency translation impact.
In the Diversified Fresh Produce – Americas & ROW segment, revenue increased by 12.8%, or $54.1 million, primarily due to higher volumes of cherries sold, improved pricing and volumes in avocados, and generally strong volumes and better pricing across most commodities. Adjusted EBITDA in this segment saw an impressive increase of 89.3%, or $6.9 million, driven by higher cherry revenue and improved performance in avocados in North America.
Capital expenditures from continuing operations for the quarter were $18.2 million, with additional investments in shipping containers, farming, efficiency projects in warehouses, and IT and logistics assets.
Dole also reported free cash flow from continuing operations as an outflow of $53.2 million, primarily due to normal seasonal impacts and higher inventories of finished goods.
Looking ahead, Dole plc remains optimistic about its performance for the full fiscal year 2024. The company aims to deliver an adjusted EBITDA target of at least $360 million, adjusting for the disposal of Progressive Produce. Capital expenditure guidance for continuing operations remains between $110 million and $120 million, with interest expense guidance reduced to $75 million to $80 million.
Additionally, Dole’s Board of Directors declared a cash dividend of $0.08 per share for the first quarter of 2024, payable on July 5, 2024, to shareholders of record on June 12, 2024.
Dole plc continues to be a global leader in fresh produce, dedicated to making the world healthier and more sustainable by producing, marketing, and distributing a wide variety of fresh fruits and vegetables in over 75 countries.
