Dole plc Reports Third Quarter 2024 Financial Results
Dole plc has reported its financial performance for the third quarter ending September 30, 2024. The company's performance showcased key metrics and achievements across various segments.
Key Financial Metrics
| Metric | Q3 2024 Value | YoY Comparison | Consensus Estimates |
|---|---|---|---|
| Revenue | $2.1 billion | +1.0% | $2 billion |
| Net Income | $21.5 million | -60.1% | - |
| Adjusted EBITDA | $82.1 million | -3.7% | - |
| Adjusted Diluted EPS | $0.19 | - | $0.2 |
Dole's Q3 revenue of $2.1 billion surpassed consensus expectations, driven by operational performance across segments. Adjusted EBITDA fell by 3.7% due to segment-specific challenges but showed a 2.3% increase on a like-for-like basis. The decline in net income by 60.1% was attributed to the absence of a previous year's exceptional gain.
Revenue Performance Across Segments
| Segment | Revenue Q3 2024 | YoY Change | Comments |
|---|---|---|---|
| Fresh Fruit | $825 million | +6.6% | Growth in banana volume and pricing |
| Diversified Fresh Produce - EMEA | $890 million | +5.1% | Strong performance in key European markets |
| Diversified Fresh Produce - Americas & ROW | $385 million | -17.0% | Impacted by business disposal |
The Fresh Fruit segment saw a 6.6% revenue increase due to higher banana sales. The EMEA region's growth of 5.1% was driven by robust sales in Ireland, the U.K., and the Netherlands, despite adverse conditions affecting EBITDA. Conversely, the Americas & ROW's revenue decline was largely due to the divestiture of Progressive Produce, although on a like-for-like basis, revenue improved due to increased volumes and pricing in North America.
Operational Highlights
- Investments in shipping containers, farming, and logistics, totaling $56.8 million in cash capital expenditures in the nine-month period.
- Committed $41.1 million for vessel purchases during Q3.
Comments from Company Officers
Carl McCann, Executive Chairman, expressed satisfaction with the quarter's results, highlighting the rise in like-for-like Adjusted EBITDA and reiterating confidence in meeting revised full-year targets. The company increased its full-year Adjusted EBITDA target to at least $380 million.
Dividend Announcement
The Board declared a $0.08 per share dividend for the second quarter of 2024, payable on January 3, 2025.
Forward Guidance
Dole raised its full-year adjusted EBITDA target, indicating optimism in sustaining growth through 2024. The strategic expansion of its shipping fleet will lead to increased capital expenditures, expected to range between $130 million and $140 million for the year.
Stock Price Movement
Post-earnings, Dole's stock experienced a minor adjustment, with a % decrease of approximately 0.12%.
In sum, Dole plc has demonstrated resilience in its financial performance amidst operational challenges, underpinned by strategic segmental growth and prudent financial management. The company remains on track to achieve strong full-year results, reflecting its robust market positioning and executive strategies.
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