Dublin-based Dole plc, the world’s largest fresh fruit and vegetable supplier, reported on Friday that operating earnings dropped by more than a third in the third quarter, driven by rising transport, packaging and labour costs and a weak international market for fresh packed vegetables.
The company, formed in July through the merger of Total Produce – a 2006 spin-off from Fyffes – and US rival Dole Foods, said that its adjusted earnings before interest, tax, depreciation and amortisation (ebitda) declined by 35.4 per cent to $59.7 million (€52.8 million). Revenue rose by 0.3 per cent to $2.3 billion. All the figures in the report were on a pro-forma basis, as if the merger had occurred last year, in order to give an insight into trends.
For the first nine months of the year, revenue rose 4.5 per cent to $7.1 billion, while ebitda rose by 12.6 per cent to $337.7 million.
“Dole plc has delivered a strong performance for the first nine months of 2021 in the context of inflationary pressures across our North American and European markets during the third quarter,” said group executive chairman Carl McCann, who previously held the same title at Total Produce.
Pro-Forma Revenue for the third quarter was down 0.8% due to lower volumes of Bananas in North America and lower Banana pricing in Europe, as well as lower pricing for Pineapples in North America. This was offset in part by higher pricing in North America for Bananas, volume growth in Pineapples in North America and in Europe, as well as growth in commercial cargo revenues due to higher freight rates.
Pro-forma Revenue for the first nine months of 2021 increased 2.7% due to higher Banana pricing in North America and higher Pineapple pricing across all markets as well as growth in commercial cargo, partially offset by lower Banana volumes in all markets.
Pro-Forma Adjusted EBITDA for the third quarter was down 53.2% compared to the prior year due to lower revenue and higher transportation costs in North America and higher produce costs driven by input materials increases, as well cost pressures from the supply chain impact caused by hurricanes Iota and Eta in Honduras and Guatemala in November 2020.
For more information: doleplc.com