Dole's first half profits drop nearly 60% despite ‘strong' second quarter
, the Dublin-headquartered fruit and vegetable giant, has reported a 'very strong' second quarter, which helped it record first half revenue of $4.5 billion (€3.9 billion), up 6.67 per cent on 2024.
The New York-listed company said its group net income, or profit, in the first six months of the year had dropped to $62 million, down 59 per cent from the $153.5 million in the first half of 2024.
This was due in part to a $70.1 million drop in net income, or profit, to $18 million in the second quarter, down 79.6 per cent on Q2 2024. Second quarter revenues rose by 14 per cent to $2.4 billion.
The group said the decrease was due to a $35 million loss in its fresh vegetables operations which made a profit the year prior, and due to 'unrealised foreign currency losses'.
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The group's adjusted earnings before interest, tax and depreciation and amortisation (Ebitda) rose 9.3 per cent compared with the same period in 2024.
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Produce giant Dole raises earnings guidance despite 'volatile' economic conditions
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The full-year Ebitda guidance for the group, which was formed in 2021 through the merger of Dublin-based Fyffes spin-out Total Produce and US-anchored Dole Food Company, has been raised to between $380 million and $390 million.
Dole's executive chairman, Irishman Carl McCann, said the group had a 'strong result' for the second quarter fuelled by 'good growth' across its operations.
'For the current financial year, although the macroeconomic environment remains complex, we are pleased to announce an upward revision of our guidance and are now targeting full year adjusted Ebitda in the range of $380 million to $390 million,' he said.
He highlighted the sale of the group's 3,000-employee fresh vegetables division to Californian agricultural investment firm Arable Capital Partners in a deal worth in excess of $140 million.
'The completion of this sale represents an important strategic milestone for the group and will enable us to further concentrate our efforts and investments on our core business activities,' Mr McCann said.
Driven by growth in the performance of the group's banana and pineapple sales and pricing, its fruit sector saw first half revenue increase from $1.68 billion in 2024 to $1.85 billion this year.
Favourable currency exchange rates aided its Europe, the Middle East and Africa (EMEA) produce sector seeing 'strong performance' in the UK, Spain, Scandinavia and the Netherlands. First half revenue grew by 10.8 per cent to $1.99 billion.
Higher revenue from South America exports combined with the 'continued good performance' of apples, citrus and avocado products grew revenue in its Americas and rest of world division.
Dole carried out $72.2 million of capital investment in the period, including the buyout of two finance leases of $36.1 million and investment into infrastructure and facilities in northern Europe, the group's financial statement said.
The company also refinanced its long-term revolving credit facility for five years to a value of $600 million.
The company said it expects its 'positive momentum' to continue. Short-term issues may persist, however we remain confident in the resilience of our diversified business model and the international fresh produce industry.'
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