The following is a summary of the Dole Plc. (DOLE) Q1 2024 Earnings Call Transcript:
Financial Performance:
Dole Plc. reported Q1 revenue of $2.1 billion, a 6.6% increase, and adjusted EBITDA increased by 9.7% to $110 million.
The adjusted net income increased by $8.3 million to $40.6 million, with adjusted EPS increasing by 26% to $0.43 a share.
The company utilized the proceeds from the sale of a 65% interest in progressive projects to repay debt, which resulted in a reduced net leverage to 2 times.
The full-year adjusted EBITDA target stands at a minimum of $360 million, adjusted considering the progressive project disposal.
Business Progress:
There was significant growth in the adjusted EBITDA due to a strong performance in the diversified fresh produce America and EMEA segments, along with a steady showing from the fresh fruit segment.
Their sale agreement of the Fresh Vegetable division to Fresh Express was called off due to the DOJ choosing to pursue litigation, leading the company to explore other beneficial alternatives.
They anticipate higher costs on account of regulatory changes and periodic dry docking related expenses, even though the Fresh Food segment delivered well in Q1 2024.
Their diverse sourcing of infrastructure, broad customer base, strong management, and expansion focus lend them confidence in replicating their strong Q1 performance throughout 2024.
The focus for 2024 includes maximizing profitability in businesses affected by the post-pandemic supply chain issues, expanding the Diversified EMEA and Americas divisions, and maintaining an optimally balanced capital structure.
More details: Dole plc IR
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