Shares in Total Produce were down 1.3% in afternoon trading yesterday, after it announced a decline of €4.37 million in the quarterly earnings at US-based Dole Food. Earlier this year, Total Produce agreed to the acquisition of 45% of Dole for €262 million.
Dole reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of €40 million for the three months up to October 6. This is a decline on the €44 million EBITDA reported for the same period in 2017.
The year-on-year drop in earnings reflected a €6.47 million EBITDA reduction in its fresh vegetables segment, which had been impacted by an industry-wide safety notice linked to romaine lettuce - and not directly linked to Dole - as well as oversupply that resulted in lower pricing.
Meanwhile, Dole's fresh fruit segment performed "strongly" during the period. During the three months, Dole also sold its corporate headquarters for €43.7 million, with an associated gain of €6.38 million. This was not included in the EBITDA.
Commenting on the update, analysts at Davy stockbrokers said that, in the absence of explicit changes to company guidance, it would maintain its financial year 2018 forecasts for Total.
Source: independent.ie
