Dole (DOLE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $2,062 million, up 1% year-over-year and 5.8% like-for-like, reflecting strong operational performance across all segments.

• Adjusted EBITDA was $82.1 million, down 3.7% year-over-year but up 2.3% like-for-like, driven by strong Diversified Americas results; Adjusted Diluted EPS was $0.19.

• Net income was $21.5 million, down from Q3 2023 due to a prior-year exceptional gain on asset sale and lower other income.

• Adjusted net income was $18.0 million.

• For the first nine months, revenue grew 2.2% and Adjusted EBITDA increased 3.0% year-over-year.

Financial highlights

• Fresh Fruit revenue grew 6.6% year-over-year, driven by higher banana volumes and pricing, partially offset by lower pineapple volumes and plantain performance.

• Adjusted EBITDA for Fresh Fruit was $42.9 million, slightly down due to higher shipping costs from dry docking, but ahead of expectations.

• Diversified EMEA revenue increased 3.3% like-for-like (5.1% YoY), with Adjusted EBITDA down 13.1% due to one-off IT charges and supply issues.

• Diversified Americas delivered a strong quarter, with like-for-like revenue up 7.2% and Adjusted EBITDA up 70.7% on improved North American berries and avocado margins.

• Interest expense decreased $5 million year-over-year due to lower debt and market rates.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA target raised to at least $380 million.

• Capital expenditure for 2024 expected at $130–$140 million, including vessel purchases.

• Full-year interest expense forecasted at approximately $75 million.

• Expectation of higher shipping costs in Q4 due to ongoing dry docking.

• Anticipate continued strong performance in Fresh Fruit and Diversified Americas, with normalized seasonal trends in cherries and export activities.