Dole plc Reports First Quarter 2025 Financial Results

DUBLIN--(BUSINESS WIRE)--Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months ended March 31, 2025.Good first quarter performance, positioning the Company to deliver a strong full year result for 2025Share Highlights for the three months ended March 31, 2025: Good first quarter performance, positioning the Company to deliver a strong full year result for 2025 Revenue of $2.1 billion, a decrease of 1.0% (an increase of 4.2% on a like-for-like basis1) Net Income decreased to $44.2 million, primarily due to the benefit of an exceptional net gain on the disposal of Progressive Produce recorded in the prior period Adjusted EBITDA2 of $104.8 million, a decrease of 4.8% (a decrease of 2.0% on a like-for-like basis) Adjusted Net Income2 of $33.1 million and Adjusted Diluted EPS of $0.35 Quarterly dividend increased by 6.25% to 8.5 cent per share Post quarter end, successfully completed $1.2 billion refinance of credit facilities Commenting on the results, Carl McCann, Executive Chairman, said: “We are pleased to report another good performance for the first quarter of the 2025 financial year. Group revenue increased 4.2% on a like for like basis and we delivered $104.8 million of Adjusted EBITDA, surpassing our initial projections. Post quarter end, we successfully completed the refinance of our credit facilities. This refinancing provides enhanced financial flexibility to support our growth initiatives. Today, we have declared an 8.5 cent dividend for the first quarter, a 6.25% increase. For the current financial year, although the economic environment remains unpredictable, we are pleased to announce an upward revision of our guidance and are now targeting full year Adjusted EBITDA of at least $380.0 million.” Group Results - First Quarter Revenue decreased 1.0%, or $22.0 million primarily due to a net negative impact from acquisitions and divestitures of $89.8 million, particularly in the Diversified Fresh Produce - Americas & ROW segment as a result of the disposal of the Progressive Produce business in mid-March 2024, as well as an unfavorable impact from foreign currency translation of $21.0 million. These decreases were offset by positive operational performance in the Fresh Fruit and Diversified Fresh Produce - EMEA segments. On a like-for-like basis, revenue increased 4.2%, or $88.8 million. Net Income decreased 32.5%, or $21.3 million, to $44.2 million, primarily due to the prior year benefit of a net exceptional gain of $37.3 million related to the disposal of the Progressive Produce business ($74.0 million gain on disposal less a non-cash goodwill impairment charge of $36.7 million). There was also a decrease of other income of $8.0 million, primarily related to fair value adjustments of financial instruments. These decreases were partially offset by higher earnings in equity method investments relating to a non-cash gain on a M&A transaction related to an equity method investment, as well as higher net income within discontinued operations. Adjusted EBITDA decreased 4.8%, or $5.3 million, primarily driven by decreases in the Fresh Fruit segment, a net negative impact from acquisitions and divestitures of $2.4 million, particularly in the Diversified Fresh Produce - Americas & ROW segment related to the disposal of the Progressive Produce business, and an unfavorable impact from foreign currency translation of $0.7 million. These decreases were partially offset by increases in the Diversified Fresh Produce - EMEA segment. On a like-for-like basis, Adjusted EBITDA decreased 2.0%, or $2.2 million. Adjusted Net Income decreased 18.4%, or $7.5 million, predominantly due to the decreases in Adjusted EBITDA noted above as well as higher depreciation expense. Adjusted Diluted EPS for the three months ended March 31, 2025 was $0.35 compared to $0.43 in the prior year. Fresh Fruit Revenue increased 6.5%, or $53.9 million, primarily due to higher worldwide volumes of bananas sold, as well as higher worldwide pricing of pineapples and plantains, partially offset by lower worldwide volumes of pineapples and plantains sold. Adjusted EBITDA decreased 8.8%, or $6.1 million, primarily driven by anticipated higher fruit costs following Tropical Storm Sara that impacted Honduras in November 2024, as well as higher shipping costs due to the completion of scheduled dry dockings and the impact of an operational disruption for one of our vessels servicing the North American market. These challenges were partially offset by an improved performance in pineapples on a worldwide basis as well as good growth in banana volumes. Diversified Fresh Produce – EMEA Revenue increased 4.5%, or $38.5 million, primarily due to strong performance in the U.K., Spain and the Netherlands, partially offset by an unfavorable impact from foreign currency translation of $19.4 million, as a result of the weakening of the Euro and Swedish krona against the U.S. Dollar, and a net negative impact from acquisitions and divestitures of $10.5 million. On a like-for-like basis, revenue increased 8.0%, or $68.4 million. Adjusted EBITDA increased 6.6%, or $1.7 million, primarily driven by increases in earnings in the U.K., Spain and the Netherlands, partially offset by lower earnings in Germany and an unfavorable impact of foreign currency translation of $0.7 million. On a like-for-like basis, Adjusted EBITDA increased 9.4%, or $2.5 million. Diversified Fresh Produce – Americas & ROW Revenue decreased 23.8%, or $113.5 million, primarily due to the disposal of the Progressive Produce business in mid- March 2024. On a like-for-like basis, revenue decreased 6.8%, or $32.6 million, primarily due to lower export pricing in key southern hemisphere export products, primarily cherries, as well as decreases in the North American market, particularly due to lower pricing for grapes and lower volumes in avocados. Adjusted EBITDA decreased 5.9%, or $0.9 million, primarily driven by the disposal of the Progressive Produce business. On a like-for-like basis, Adjusted EBITDA increased 10.4%, or $1.5 million, primarily due to a strong performance in the North American market in kiwis as well as in citrus and avocados, partially offset by declines in the southern hemisphere export side in cherries and grapes as well as declines in berries in the North American market. Capital Expenditures Cash capital expenditures from continuing operations for the three months ended March 31, 2025 were $52.8 million, including the buyout of two vessel finance leases of $36.0 million that were already reflected within Net Debt as of December 31, 2024. Other expenditures included investments in vessel dry dockings, farming investments, efficiency projects in our warehouses and ongoing investments in IT and logistics assets. Additions through finance leases from continuing operations were $0.2 million for the three months ended March 31, 2025. Free Cash Flow from Continuing Operations and Net Debt Free cash flow from continuing operations was an outflow of $131.6 million for the three months ended March 31, 2025. Free cash flow was primarily driven by normal seasonal impacts. There were outflows from receivables based on timing of collections. Free cash flow was also impacted by the buyout of finance leases discussed above. Net Debt and Net Leverage as of March 31, 2025 was $742.1 million and 1.9x, respectively. Debt Refinancing On May 1, 2025, we announced the successful completion of the refinance of our corporate credit facilities. The new credit facilities consist of a $600.0 million multicurrency five-year Revolving Credit Facility (“RCF”), a $250.0 million five-year Term Loan A (“TLA”) and a $350.0 million seven-year Farm Credit term loan. These new credit facilities replace an existing RCF, TLA and a senior secured Term Loan B. All facilities have been successfully syndicated. Outlook for Fiscal Year 2025 (forward-looking statement) The Group's performance in the first quarter of 2025 was ahead of our own expectations. This result provides a strong foundation for the rest of the year, in a very dynamic macro-economic environment. Like most multinational businesses, we continue to monitor the evolving macro-economic scenario. We believe our industry is a good example of the benefits of international trade, providing year-round healthy products to our consumers and are confident the existing trade flows will continue on acceptable terms. Short term disruptions may arise across a range of areas such as foreign exchange rates, labor markets and supply chains. Our good start to the year, along with our resilient and diverse business model, gives us confidence in our ability to navigate the challenges of the current volatile economic environment. Consequently, we are pleased to revise our guidance upward and are now targeting full year Adjusted EBITDA of at least $380.0 million For fiscal year 2025, we are maintaining our guidance for maintenance capital expenditure of approximately $100.0 million, broadly in line with our expected annual depreciation expense. Additionally, we also anticipate some increased capital expenditure over the course of the year related to our reinvestments in Honduras following Tropical Storm Sara, albeit significantly supported by insurance proceeds. We remain focused on exploring a range of development opportunities through both internal and external investment, which we believe can further strengthen our business and drive growth for the years ahead. Our full-year interest expense guidance remains at approximately $70.0 million, based on the assumption that base rates will stay broadly stable in 2025 and without considering any exceptional cash proceeds from disposals. Dividend On May 9, 2025, the Board of Directors of Dole plc declared a cash dividend for the first quarter of 2025 of $0.085 per share, payable on July 7, 2025 to shareholders of record on June 9, 2025. A cash dividend of $0.08 per share was paid on April 3, 2025 for the fourth quarter of 2024. About Dole plc A global leader in fresh produce, Dole plc produces, markets, and distributes an extensive variety of fresh fruits and vegetables sourced locally and from around the world. Dedicated and passionate in exceeding our customers’ requirements in over 85 countries, our goal is to make the world a healthier and a more sustainable place. Webcast and Conference Call Information Dole plc will host a conference call and simultaneous webcast at 08:00 a.m. Eastern Time today to discuss the first quarter 2025 financial results. The webcast can be accessed at www.doleplc.com/investor-relations or directly at https://events.q4inc.com/attendee/573569584. The conference call can be accessed by registering at https://registrations.events/direct/Q4I84584929. Forward-looking information Certain statements made in this press release that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s beliefs, assumptions, and expectations of our future economic performance, considering the information currently available to management. These statements are not statements of historical fact. The words “believe,” “may,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “strive,” “target” or similar words, or the negative of these words, identify forward-looking statements. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws. Category: Financial Appendix Reconciliation from Net Income to Adjusted EBITDA - Unaudited The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Refer to the Appendix for supplementary detail. Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item. Net Debt and Net Leverage Reconciliation – Unaudited Net Debt is the primary measure used by management to analyze the Company’s capital structure. Net Debt is a non- GAAP financial measure, calculated as cash and cash equivalents, less current and long-term debt. It also excludes debt discounts and debt issuance costs. Net Leverage is calculated as total Net Debt divided by Last Twelve Months ("LTM") Adjusted EBITDA as of the period end. The calculation of Net Debt and Net Leverage as of March 31, 2025 is presented below. Net Debt as of March 31, 2025 was $742.1 million and Net Leverage was 1.9x. Non-GAAP Financial Measures Dole plc’s results are determined in accordance with U.S. GAAP. In addition to its results under U.S. GAAP, in this Press Release, we also present Dole plc’s Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow from Continuing Operations, Net Debt and Net Leverage, which are supplemental measures of financial performance that are not required by, or presented in accordance with, U.S. GAAP (collectively, the "non-GAAP financial measures"). We present these non-GAAP financial measures, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our operating results, cash flows or any other measure prescribed by U.S. GAAP. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items or that any projections and estimates will be realized in their entirety or at all. In addition, adjustment items that are excluded from non-GAAP results can have a material impact on equivalent GAAP earnings, financial measures and cash flows. Adjusted EBIT is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (5) other items which are separately stated based on materiality, which during the three months ended March 31, 2025 and March 31, 2024, included adding impairment charges on goodwill, adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property and adding restructuring charges and costs for legal matters not in the ordinary course of business; and (6) the Company’s share of these items from equity method investments. Adjusted EBITDA is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding depreciation charges; (5) adding amortization charges on intangible assets; (6) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (7) other items which are separately stated based on materiality, which during the three months ended March 31, 2025 and March 31, 2024, included adding impairment charges on goodwill, adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property and adding restructuring charges and costs for legal matters not in the ordinary course of business; and (8) the Company’s share of these items from equity method investments. Last Twelve Months ("LTM") Adjusted EBITDA is calculated as Adjusted EBITDA, as defined above, for the last twelve months as of the period end, which for the three months ended March 31, 2025, is calculated as subtracting the Adjusted EBITDA for the three months ended March 31, 2024 from the Adjusted EBITDA for the year ended December 31, 2024 and then adding Adjusted EBITDA for the three months ended March 31, 2025. LTM Adjusted EBITDA for the year ended December 31, 2024 is the same as Adjusted EBITDA for the year ended December 31, 2024. Adjusted Net Income is calculated from GAAP net income attributable to Dole plc by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding amortization charges on intangible assets; (3) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (4) other items which are separately stated based on materiality, which during the three months ended March 31, 2025 and March 31, 2024, included adding impairment charges on goodwill, adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property and adding restructuring charges and costs for legal matters not in the ordinary course of business; (5) the Company’s share of these items from equity method investments; (6) excluding the tax effect of these items and discrete tax adjustments; and (7) excluding the effect of these items attributable to non-controlling interests. Adjusted Earnings per Share is calculated from Adjusted Net Income divided by diluted weighted average number of shares in the applicable period. Net Debt is a non-GAAP financial measure, calculated as GAAP cash and cash equivalents, less GAAP current and long-term debt. It also excludes GAAP unamortized debt discounts and debt issuance costs. Net Leverage is a non-GAAP financial measure, calculated as Net Debt divided by LTM Adjusted EBITDA, both of which are defined above. Free cash flow from continuing operations is calculated from GAAP net cash used in or provided by operating activities for continuing operations less GAAP capital expenditures. Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. The impact of foreign currency translation represents an estimate of the effect of translating the results of operations denominated in a foreign currency to U.S. Dollar at prior year average rates, as compared to current year average rates. Dole is not able to provide a reconciliation for projected FY'25 results without taking unreasonable efforts.

Dole plc Reports First Quarter 2025 Financial Results

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