Dole signals ‘strong’ start to the year as earnings rise 9%

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Dublin-headquartered produce distributor ‘well-positioned for growth’, says executive chairman Carl McCann via IrishTimesBiz

The company, which is now the largest supplier of fresh fruit and vegetables in the world, was created when Total Produce, originally a spin-off of Irish fruit company Fyffes, completed the acquisition of Dole Foods in July 2021.

“We are pleased to have started the year strongly and to have delivered adjusted EBITDA growth in the first quarter,” said Mr McCann.“We believe the group is well-positioned for growth and continue to target adjusted EBITDA of $350 million for the full year.” Dole said a cybersecurity incident in February this year, triggered by ransomware, had a limited impact on its operations overall, but was disruptive for its fresh vegetables and Chilean businesses in particular. Direct costs related to the incident were $10.5 million of which $4.8 million related to continuing operations.

It said the operating environment to date in 2023 “continues to bring with it both new opportunities and new challenges”. The opportunities relate to signs of improved logistical efficiencies, the strengthening of the euro relative to the dollar, stability in fuel prices and indications that inflation is moderating in certain areas.

The challenges include “unprecedented” rainfall in California and its impact on vegetable and berry crops in the region, as well as heightened interest rates and other unusual currency movements.

 

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