Agriculture group Dole reported both sales and earnings growth for the first nine months of the year, with third-quarter performance beating expectations.
Revenue increased to 6.9 billion euros for the first nine months of the year, compared to $4.2 billion reported for the same period last year.
According to Dole, revenue for the third quarter of the year was $2.3 billion, up from $1.9 billion for the corresponding quarter of 2021, driven by growth in all segments except fresh vegetables.
Fresh vegetable sales declined 5.2 percent, or $16.9 million, compared to 2021 and was particularly impacted by lower volumes of value-added salads.
The group also reported an increase in EBITDA to $263.3 million from $229 million in the same nine-month period in 2021.
Third quarter EBITDA was $73 million driven by higher banana prices as well as strong performance in the group’s commercial cargo business.
“The broad diversification of our product offering and the broad geographic footprint of our vertically integrated company provide us with a strong foundation for continued growth,” said Executive Chairman Carl McCann.
“As we near the end of the fiscal year, we are now targeting Adjusted EBITDA within our previously forecast range, but at the lower end,” he added.
Dole said the company expects “positive trends, along with some more challenges” as it looks towards the end of the year.
The company is targeting adjusted EBITDA at the low end of the $330 million to $350 million range, reflecting difficulties at its fresh produce business, which has taken longer to recover.
The company also pointed to “unusual” supply chain challenges in the third quarter at the end of the Chilean grape season in North America.
Dole was formed last year from a merger of Irish company Total Produce and US fruit and vegetable producer Dole Food.
Total Produce, which was formed after a split with fruit group Fyffes in 2006, has owned a 45% stake in the US company since 2018.
The Irish food company then reached an agreement with US company Castle & Cooke, which held the remaining 55 percent stake in Dole Food last February.
The acquisition of the remaining shares was then completed by Total Produce in July 2021.
Dole is now headquartered in Dublin but is publicly traded in the US.
https://www.independent.ie/business/irish/fresh-produce-group-dole-sees-revenues-and-profits-rise-in-third-quarter-42152437.html The fresh produce group Dole sees increases in sales and profits in the third quarter