Singapore markets open in 1 hour 4 minutes
  • Straits Times Index

    3,192.35
    -16.51 (-0.51%)
     
  • S&P 500

    4,229.45
    -58.94 (-1.37%)
     
  • Dow

    33,002.38
    -430.97 (-1.29%)
     
  • Nasdaq

    13,059.47
    -248.31 (-1.87%)
     
  • Bitcoin USD

    27,442.05
    -173.63 (-0.63%)
     
  • CMC Crypto 200

    585.30
    -4.68 (-0.79%)
     
  • FTSE 100

    7,470.16
    -40.56 (-0.54%)
     
  • Gold

    1,839.00
    -2.50 (-0.14%)
     
  • Crude Oil

    89.39
    +0.16 (+0.18%)
     
  • 10-Yr Bond

    4.8020
    +0.1190 (+2.54%)
     
  • Nikkei

    31,237.94
    -521.94 (-1.64%)
     
  • Hang Seng

    17,331.22
    -478.44 (-2.69%)
     
  • FTSE Bursa Malaysia

    1,420.01
    +1.25 (+0.09%)
     
  • Jakarta Composite Index

    6,940.89
    -20.57 (-0.30%)
     
  • PSE Index

    6,305.99
    +1.46 (+0.02%)
     

Dole plc Reports Fourth Quarter and Full Year 2022 Financial Results

DUBLIN, March 07, 2023--(BUSINESS WIRE)--Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months and year ended December 31, 2022.

Highlights for the year ended December 31, 2022:

  • First full year of Dole plc results post-acquisition

  • Good progress made on integration of legacy businesses and rebranding of European operations

  • Launch of Dole Exotics and the "BeExotic" brand

  • Released first Dole plc Sustainability Report, outlining medium to long-term sustainability goals

  • Post year end, announced the Agreement to sell our Fresh Vegetables division to Fresh Express, for gross proceeds of approximately $293.0 million

  • Satisfactory full year financial performance delivered in a challenging operating environment

  • Full year revenue of $9.2 billion and Adjusted EBITDA1 of $337.7 million, in-line with our latest guidance

Financial Highlights Unaudited

Three Months Ended

Year Ended

December 31,

2022

December 31,

2021

December 31,

2022

December 31,

2021

December 31,

2021

Pro-forma2

(U.S. Dollars in millions, except per share amounts)

Revenue

2,356

2,251

9,229

6,454

9,286

Net Income (Loss)

13.3

(24.6

)

111.7

16.8

177.6

Net Income (Loss) attributable to Dole plc

6.8

(29.3

)

86.5

(7.2

)

151.7

Diluted EPS

0.07

(0.31

)

0.91

(0.10

)

1.60

Adjusted EBITDA1

74.4

61.1

337.7

290.1

393.6

Adjusted Net Income1

8.9

0.0

92.0

73.1

141.2

Adjusted Diluted EPS1

0.09

0.00

0.97

1.01

1.49

1 Dole plc reports its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). See full GAAP financial results in the appendix. Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share and Net Debt are non-GAAP financial measures. Refer to the appendix of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP financial measures.

2 This press release contains pro-forma financial information. The unaudited pro-forma consolidated financial statements for Dole plc illustrate the effects of the acquisition of Dole Food Company, Inc. ("DFC" or "Legacy Dole") by Total Produce ("TP") and the effects of the IPO and refinancing as if they had occurred on January 1, 2020. This is consistent with the pro-forma financial statements presented in the Form F-1 filed with the SEC at the time of the IPO.

Commenting on the results, Carl McCann, Executive Chairman said:

"We were very pleased to have a strong final quarter. We delivered Adjusted EBITDA growth of 21.7% for the fourth quarter and our full year revenue and Adjusted EBITDA were in line with guidance.

"Post year end, we announced the sale of our Fresh Vegetables business. This sale will strengthen the financial position of the Group and increase our focus on our core activities.

"With our diversified product offering and wide geographic footprint, we believe our business is well positioned for growth. For the 2023 financial year, we are targeting Adjusted EBITDA of $350.0 million.

"We thank all of our talented people for their dedication and significant contributions during this past year."

Group Results Fourth Quarter

Revenue increased 4.7%, or $104.7 million, primarily due to higher pricing across the Group. On a like-for-like basis3, excluding the impact of foreign currency translation and acquisitions and divestitures, revenue increased 10.2%, or $229.0 million, with growth across all segments.

Adjusted EBITDA increased 21.7%, or $13.3 million, primarily driven by a strong quarter for the Fresh Fruit segment, partially offset by challenges in our Diversified Americas and Diversified EMEA segments and a loss in Fresh Vegetables. On a like-for-like basis, Adjusted EBITDA increased 29.0%.

Adjusted Net Income increased $8.9 million, predominantly due to the increases in Adjusted EBITDA, partially offset by a lower income tax benefit and higher interest expense. Adjusted Diluted EPS was $0.09 compared to $0.00 in the prior year.

Group Results Full Year

Revenue decreased 0.6%, or $56.8 million, on a pro-forma comparative basis; however, on a like-for-like basis, revenue increased 5.0%. The increase was driven by inflation-justified price increases across the Group.

Adjusted EBITDA decreased 14.2%, or $55.9 million, on a pro-forma comparative basis, primarily due to losses incurred by the Fresh Vegetables segment following a challenging year, as well as the negative impact of foreign currency translation. On a like-for-like basis, Adjusted EBITDA decreased 10.4%.

Adjusted Net Income decreased by 34.9%, or $49.2 million, on a pro-forma comparative basis, predominantly due to the decrease in Adjusted EBITDA and higher interest expense. Adjusted Diluted EPS decreased by 34.9% to $0.97.

Vegetables Transaction

On January 30, 2023, we entered into a Stock Purchase Agreement (the "Agreement") with Fresh Express Acquisitions LLC ("Fresh Express"), a wholly owned subsidiary of Chiquita Holdings Limited, pursuant to which Fresh Express has agreed to acquire our Fresh Vegetables division for approximately $293.0 million in cash, subject to certain adjustments set forth in the Agreement (the "Vegetables Transaction"). The Vegetables Transaction is expected to close after regulatory approvals are obtained, subject to the satisfaction or waiver of customary closing conditions.

_________________________

3 Like-for-like basis refers to the measure excluding the impact of foreign currency translation movements and acquisitions and divestitures. Refer to the Appendix for further detail on these impacts and the calculation of like-for-like variances.

Selected Segmental Financial Information

Three Months Ended

December 31, 2022

December 31, 2021

(U.S. Dollars in thousands)

Revenue

Adjusted EBITDA

Revenue

Adjusted EBITDA

Fresh Fruit

$

740,167

$

41,233

$

680,881

$

15,694

Diversified Fresh Produce - EMEA

751,594

23,630

815,330

29,363

Diversified Fresh Produce - Americas & ROW

573,936

15,557

479,702

20,574

Fresh Vegetables

315,082

(6,026

)

296,848

(4,520

)

Intersegment

(24,581

)

(21,281

)

Total

$

2,356,198

$

74,394

$

2,251,480

$

61,111

Year Ended

December 31, 2022

December 31, 2021

Pro-forma

(U.S. Dollars in thousands)

Revenue

Adjusted EBITDA

Revenue

Adjusted EBITDA

Fresh Fruit

$

3,047,149

$

212,175

$

2,877,030

$

209,999

Diversified Fresh Produce - EMEA

3,152,561

114,718

3,438,341

131,126

Diversified Fresh Produce - Americas & ROW

1,965,667

44,277

1,779,065

53,069

Fresh Vegetables

1,205,902

(33,446

)

1,280,594

(614

)

Intersegment

(142,426

)

(89,358

)

Total

$

9,228,853

$

337,724

$

9,285,672

$

393,580

Fourth Quarter Commentary

Fresh Fruit

Revenue increased 8.7%, or $59.3 million, compared to the prior year quarter. Revenue was positively impacted by higher worldwide pricing of bananas, higher commercial cargo revenues and increases in volumes of pineapples sold in core markets, partially offset by lower volumes of bananas sold.

Adjusted EBITDA increased significantly by 162.7%, or $25.5 million. Adjusted EBITDA was positively impacted by higher revenue, partially offset by higher fruit sourcing costs and higher costs of shipping, packaging and handling.

Diversified Fresh Produce – EMEA

Revenue decreased 7.8%, or $63.7 million, primarily driven by a negative translation impact on currency of $117.3 million due to the strengthening of the U.S. dollar against the European currencies. On a like-for-like basis, revenue increased 6.9%, or $56.6 million, primarily driven by inflation-justified price increases across the segment.

Adjusted EBITDA decreased 19.5%, or $5.7 million. On a like-for-like basis, excluding the negative impact of currency translation of $4.4 million, Adjusted EBITDA decreased 4.8%, or $1.4 million. The decrease in Adjusted EBITDA was primarily a result of losses on crop yield in South Africa and a weaker quarter in our Northern European and Irish businesses, offset by a stronger performance by our Spanish, Czech and Dutch businesses.

Diversified Fresh Produce – Americas & ROW

Revenue increased 19.6%, or $94.2 million, primarily driven by higher pricing and volumes of cherries in Chile, higher pricing for potatoes and onions in North America and overall positive growth in our North American operations.

Adjusted EBITDA decreased 24.4%, or $5.0 million. The decrease in Adjusted EBITDA was primarily due to a weak season for Chilean apples and kiwis and raspberries in North America, partially offset by a strong start to the Chilean cherry season and continued positive performance of potatoes and onions in North America.

Fresh Vegetables

Revenue increased 6.1%, or $18.2 million. This increase was primarily driven by price increases realized for value-added products and continued strong pricing of fresh-packed products, partially offset by lower volumes of both value-added and fresh-packed products.

Adjusted EBITDA decreased 33.3%, or $1.5 million. The decrease in Adjusted EBITDA was primarily driven by a challenging quarter in value-added products, due to sourcing challenges which led to lower volumes and higher input costs, as well as by the continued impact of inflationary cost increases on freight, packaging materials, food ingredients and labor. These challenges in value-added products were partially offset by improved performance for fresh-packed products. The prior year quarter was adversely impacted by the packaged salads recall announced on December 24, 2021.

Full Year Commentary

Fresh Fruit

Revenue increased 5.9%, or $170.1 million, on a pro-forma comparative basis. The increase was predominantly driven by higher worldwide pricing of bananas and higher commercial cargo revenues.

Adjusted EBITDA increased 1.0%, or $2.2 million, on a pro-forma comparative basis. Adjusted EBITDA was positively impacted by higher revenue, partially offset by lower volumes of pineapples in North America and higher costs of ocean and inland freight, packaging, fertilizers and other materials.

Diversified Fresh Produce – EMEA

Revenue decreased 8.3%, or $285.8 million, on a pro-forma comparative basis, primarily driven by a negative translation impact on currency of $418.9 million and a net unfavorable impact on revenue from acquisitions and divestitures of $92.6 million. On a like-for-like basis, revenue increased 6.6%, or $225.7 million, primarily driven by inflation-justified price increases across the segment, as well as an increase in food service activity from the general easing of COVID-19 restrictions.

Adjusted EBITDA decreased 12.5%, or $16.4 million, on a pro-forma comparative basis. On a like-for-like basis, excluding the negative impact of currency translation of $16.3 million, Adjusted EBITDA was flat. Strong performance in our Spanish, U.K. and Dutch businesses and an overall increase in average selling prices was offset by logistical challenges on trading in Northern Europe and losses on crop yield in South Africa.

Diversified Fresh Produce – Americas & ROW

Revenue increased 10.5%, or $186.6 million, on a pro-forma comparative basis, primarily driven by higher pricing for potatoes and onions in North America, as well as by good performance from avocados and a strong start to the Chilean cherry season.

Adjusted EBITDA decreased 16.6%, or $8.8 million, on a pro-forma comparative basis. The decrease in Adjusted EBITDA was primarily due to a challenging end to the Chilean grape season, weaker performance for apples and kiwis in South America and lower pricing for raspberries in North America. These negative impacts were partially offset by strong performance for potatoes, onions and avocados in North America and growth for Chilean cherries.

Fresh Vegetables

Revenue decreased 5.8%, or $74.7 million, on a pro-forma comparative basis. Revenue was impacted by lower volumes following the packaged salads recall and plant suspension at the outset of 2022 and planned reduction of fresh-packed vegetables volumes.

Adjusted EBITDA decreased $32.8 million on a pro-forma comparative basis. The decrease in Adjusted EBITDA was primarily a result of lower revenue following the packaged salads recall and inflationary cost increases in freight, packaging materials, food ingredients and product sourcing. Unfavorable weather events in the second half of the year also impacted product sourcing. These challenges were partially offset by improved performance for fresh-packed products.

Capital Expenditures

Capital expenditures for the year ended December 31, 2022 were $98.0 million and included investments in farm renovations and greenhouse projects across our growing regions, the acquisition of an additional farm in Peru and ongoing investments in information technology, logistics and efficiency projects in our warehouses and processing facilities.

Net Debt

Net Debt as of December 31, 2022 was $1.0 billion.

Outlook and Strategic Priorities for Fiscal Year 2023 (forward-looking statement)

The operating environment in 2023 continues to bring both new opportunities and new challenges.

We are continuing to see improvements in global supply chains and signs of moderating inflation, which can have a positive impact on our business. However, we have also witnessed further weather events, such as colder weather in Spain and Northern Africa, which have created challenges for importers in Northern Europe at the start of the year.

Within our own business, we recently experienced a cybersecurity incident identified as ransomware. We moved quickly to contain the threat and have been working closely with leading cybersecurity experts to remediate the issue and secure our systems. We have also been cooperating with law enforcement. The incident had a limited overall impact on our operations; however, it was disruptive for our Chilean and Fresh Vegetables businesses in particular.

Overall, for full year 2023, we believe our business is well positioned for growth. While forecasting in the current environment is complex, we are targeting full year Adjusted EBITDA of $350.0 million. This target assumes no contribution from the Fresh Vegetables division.

The above outlook includes non-GAAP financial measures. Please refer to the appendix of this release for an explanation and reconciliation of our historical non-GAAP financial measures used in this release to comparable GAAP financial measures.

Dividend

On March 6, 2023, the Board of Directors of Dole plc declared a cash dividend for the fourth quarter of 2022 of $0.08 per share, payable on April 21, 2023 to shareholders of record on March 31, 2023. A cash dividend of $0.08 per share was paid on January 6, 2023 for the third quarter of 2022.

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 75 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 fourth quarter and full year 2022 financial results. The webcast can be accessed at www.doleplc.com/investors.

The conference call can be accessed live by dialing (646) 307-1963 in the US or +353 (1) 582 2023 in Ireland and +44 20 3481 4247 for UK and other international participants. The conference ID is 4191785.

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.

Appendix

Consolidated Statements of Operations - Unaudited

Three Months Ended

Year Ended

December 31,

2022

December 31,

2021

December 31,

2022

December 31,

2021

December 31,

2021

Pro-forma

(U.S. Dollars and shares in thousands, except per share amounts)

Revenues, net

$

2,356,198

$

2,251,480

$

9,228,853

$

6,454,402

$

9,285,672

Cost of sales4

(2,198,911

)

(2,157,090

)

(8,634,144

)

(6,105,271

)

(8,565,685

)

Gross profit

157,287

94,390

594,709

349,131

719,987

Selling, marketing, general and administrative expenses4

(127,669

)

(130,873

)

(491,712

)

(349,769

)

(517,712

)

Merger, transaction and other related costs

(1,258

)

(30,072

)

(Loss) gain on disposal of businesses

(50

)

606

192

11

11

Impairment of property, plant and equipment

(397

)

(397

)

Gain on asset sales

2,559

319

11,634

581

3,323

Operating income (loss)

31,730

(36,816

)

114,426

(30,118

)

205,609

Other income (expense), net

(9,112

)

791

11,322

8,658

20,572

Interest income

2,046

2,112

6,642

3,938

5,321

Interest expense

(19,761

)

(12,843

)

(61,485

)

(27,030

)

(45,520

)

Income (loss) before income taxes and equity earnings

4,903

(46,756

)

70,905

(44,552

)

185,982

Income tax benefit (expense)

5,704

18,171

34,059

13,333

(32,089

)

Equity method earnings

2,698

4,009

6,726

48,027

23,658

Net income (loss)

13,305

(24,576

)

111,690

16,808

177,551

Less: Net income attributable to noncontrolling interests

(6,524

)

(4,675

)

(25,194

)

(24,027

)

(25,900

)

Net income (loss) attributable to Dole plc

$

6,781

$

(29,251

)

$

86,496

$

(7,219

)

$

151,651

Net income (loss) per share attributable to Dole plc – basic

$

0.07

$

(0.31

)

$

0.91

$

(0.10

)

$

1.60

Net income (loss) per share attributable to Dole plc – diluted

$

0.07

$

(0.31

)

$

0.91

$

(0.10

)

$

1.60

Weighted average shares outstanding – basic

94,899

94,878

94,886

72,190

94,878

Weighted average shares outstanding – diluted

94,928

95,041

94,906

72,190

95,030

4 The consolidated statement of operations for the three months ended December 31, 2021 reflects a reclassification of $30.7 million to selling, marketing, general and administrative expenses from cost of sales in order to correct the presentation of expenses. Management does not believe such reclassification is necessary in the consolidated statement of operations for the year ended December 31, 2021.

Consolidated Balance Sheets - Unaudited

December 31,

2022

December 31,

2021

ASSETS

(U.S. Dollars in thousands)

Cash and cash equivalents

$

228,840

$

250,561

Short-term investments

5,367

6,115

Trade receivables, net of allowances for credit losses of $19,130 and $22,064, respectively

605,154

719,114

Grower advance receivables, net of allowances of $15,817 and $9,606, respectively

120,940

72,350

Other receivables, net of allowances of $14,810 and $14,066, respectively

137,575

125,908

Inventories, net of allowances of $4,410 and $7,447, respectively

436,878

410,737

Prepaid expenses

55,045

45,339

Other current assets

15,034

11,011

Assets held-for-sale

645

200

Total current assets

1,605,478

1,641,335

Long-term investments

16,498

23,433

Investments in unconsolidated affiliates

124,239

128,407

Actively marketed property..

31,007

50,364

Property, plant and equipment, net of accumulated depreciation of $404,009 and $283,677, respectively

1,343,307

1,430,850

Operating lease right-of-use assets

392,797

368,632

Goodwill

497,453

511,333

DOLE brand

306,280

306,280

Other intangible assets, net of accumulated amortization of $120,315 and $117,499 respectively

50,990

62,046

Other assets

159,681

98,917

Deferred tax assets, net

64,112

46,371

Total assets

$

4,591,842

$

4,667,968

LIABILITIES AND EQUITY

Accounts payable

$

729,615

$

696,766

Income taxes payable

11,558

10,316

Accrued liabilities

465,626

464,931

Bank overdrafts

8,623

9,395

Current portion of long-term debt, net

97,435

51,785

Current maturities of operating leases

81,968

73,046

Payroll and other tax

28,913

35,212

Contingent consideration

1,791

2,958

Pension and postretirement benefits

17,287

17,664

Dividends payable and other current liabilities

17,698

9,078

Total current liabilities

1,460,514

1,371,151

Long-term debt, net

1,127,321

1,297,808

Operating leases, less current maturities

320,272

305,714

Deferred tax liabilities, net

143,376

145,689

Income tax payable, less current portion

30,458

40,439

Contingent consideration, less current portion

5,022

4,302

Pension and postretirement benefits, less current portion

124,646

152,149

Other long-term liabilities

61,248

105,310

Total liabilities

$

3,272,857

$

3,422,562

Commitments and contingent liabilities:

Redeemable noncontrolling interests

32,311

32,776

Stockholders’ equity:

Common stock — $0.01 par value; 300,000,000 shares authorized and 94,899,194 shares outstanding as of December 31, 2022 and 300,000,000 shares authorized and 94,877,706 shares outstanding as of December 31, 2021

949

950

Additional paid-in capital

795,063

792,223

Retained earnings

469,249

413,335

Accumulated other comprehensive loss

(104,133

)

(125,919

)

Total equity attributable to Dole plc

1,161,128

1,080,589

Equity attributable to noncontrolling interests

125,546

132,041

Total equity

1,286,674

1,212,630

Total liabilities, redeemable noncontrolling interests and equity

$

4,591,842

$

4,667,968

Consolidated Statements of Cash Flows - Unaudited

Year Ended

December 31,

2022

December 31,

2021

Operating Activities

(U.S. Dollars in thousands)

Net income

$

111,690

$

16,808

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

130,997

72,955

Incremental charges on purchase accounting valuation of biological assets and inventory

41,145

65,916

Net (gain) on sale of assets and asset write-offs

(11,634

)

(581

)

Impairment of property, plant and equipment

397

Net (gain) loss on financial instruments

7,167

(3,910

)

Stock-based compensation expense

4,500

815

Equity method earnings

(6,726

)

(48,027

)

Net (gain) on disposal of businesses

(192

)

(11

)

Amortization of debt discounts and debt issuance costs

6,213

2,634

Deferred tax (benefit)

(35,044

)

(23,168

)

Pension and other postretirement benefit plan expense

3,151

2,913

Dividends received from equity method investees

9,817

12,137