IRELAND – Dole’s net income soars by 68.4% in Q2 2024, reaching USD 88.1 million compared to the same period last year, despite a slight drop in revenue.
Dole plc reported a net income of USD 65.4 million for the first quarter of 2024, representing an impressive 219.5% increase compared to the same period in 2023.
This growth was driven by strong operational performance across the group and a gain of USD 74.0 million from the sale of Progressive Produce.
The notable performance in Q2 2024 comes despite a minor decline in revenue, which fell 0.8% to USD 2.1 billion.
The revenue drop primarily stems from negative impacts related to acquisitions, divestitures, and foreign currency translation. However, on a like-for-like basis, revenue increased by 4.3%.
The fresh fruit segment proved to be a strong performer, with revenue up 1.5% or USD 12.4 million. This growth was driven by higher volumes and prices for bananas in Europe and North America, along with increased plantain sales.
However, these gains were partly offset by decreased volumes and pricing for pineapples. Adjusted EBITDA rose 2.2% to USD 125.4 million, reflecting robust performance in this segment.
Carl McCann, executive chairman of Dole, expressed satisfaction with the company’s results, stating, “We are pleased to report another strong result for the second quarter of 2024, with adjusted EBITDA increasing 2.2% to USD 125.4 million and 8.2% on a like-for-like basis.”
He also noted that the company had repaid USD 100 million of its term loan facilities following the sale of Progressive Produce. Dole’s net debt at the end of the quarter stood at USD 767.5 million.
Revised financial targets amid regulatory setbacks
Despite the positive results, Dole faced a setback with its planned sale of the US fresh vegetables unit.
The company had intended to sell this division to Fresh Express, a subsidiary of Chiquita Brands International, for USD 293 million.
However, the US Department of Justice decided to challenge the transaction, leading both parties to terminate the deal. Dole remains confident in finding an alternative path forward that will benefit its employees, customers, and shareholders.
“We strongly disagree with the Department of Justice’s decision but are optimistic about finding a suitable solution for the fresh vegetables division,” the company said in a statement.
Looking ahead, Dole has raised its full-year adjusted EBITDA target to at least $370 million, despite ongoing complexities in forecasting.
McCann highlighted, “Our strong first half of the year and positive momentum within the business position us well to deliver a good result for the 2024 financial year.”
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