DOLE - Earnings call transcript Q3 2021

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Operator

Hello all and welcome to the Dole plc Third Quarter 2021 Earnings Conference Call and Webcast. Today's conference is being broadcast live over the Internet and is also being recorded for playback purposes. At this time, all participants are in a listen-only mode. After the speakers ' presentation, there will be a question-and-answer session.

For opening remarks and introductions, I would like to turn the call over to the Head of Investor Relations with Dole plc. O'Regan. James

James O'Regan

thank our And Conference Quarter for Call. you everybody. Third joining XXXX Welcome,

the Rory for Davis, today, Officer, me and being call Joining on our on are this This call Chief website call. Officer, webcast live Officer. be Johan Operating Byrne, after and Financial Frank available Chief will conference is replay Lindén, Executive Chief

website. presentation on During circumstances this the Please are statements. our available the Company remarks. will disclaims forward-looking to Relations supplement may our include and Dole and they call, outcomes These including news Federal we'll releases. to that provisions Actual differ statements our note, made, plc Safe materially slides be time forth today from forward-looking remarks range within filings reflect be And wide any to Harbor those due the results Law. expressly implied are referring set expressed or in of of Investor those to Securities or section certain at these update the the factors, obligation of may a any or revise SEC the

to be debt, to that, per the turn and adjusted website earnings most use doleplcs.com/investors. the and reports, release, in materials over our disclaimer related Rory. earnings the Information we SEC the The quarter found of net the With be of I'm today's section of net Our slides note includes can measures on forward-looking adjusted reconciliation our found income, comparable presentation today. to regarding also and third the our statements be may measures financial a of be in call will can EBITDA, non-GAAP for adjusted also financial at found pleased which release, details GAAP share. statutory discussing filings

Rory Byrne

of higher $XXX.X also Concurrently of to Produce later from results by quarter has followed and into Johan presentation, we us discuss package, IPO plc Dole just being as through the give our proceeds with group, plc stash. you year for with end on high-level trading, providing third a balance We new PLC the financial you will in And our you, were at And completed successfully the also you Total undertaken in was long-term and across sheet strategy. used our earnings our us the IPO Thank strategic that, a on performance on cost plc and an XXXX of of following Dole the July. being further in strengthen million progress IPO liquidity bringing been of to by our turning I together Food initiatives year-to-date, and wanted formed growth. and joining update some proceeds Company continued provide received all Dole this the to finally, repaying Slide review. give XXXX comment first to $X.XX support transformative while the with a for will thank and of IPO With at James, call these overview the insight synergies, net business. all refinancing Company, will I made well-structured take the the the X, Dole some by Frank billion globe. on our us July.

all synergy end prepared IPO the focused release with reorganization occurred presentation on X the forma functions. of strategy pro XXXX. integration public the this July, Company the with implementing issued strengthening as compliance Since IPO. that's management and the in financial refinancing purposes and the across at further financial on and IPO, had January the of merger, presented our SEC a the reporting PLC's results the forma been information basis out press and is on consistent set with if filed of This illustrating connection and been pro For the Form information in our we've F-X Dole today enlarged in density, our

very within strong the XX ships a enabled the been containers XX,XXX complexity geographic in performance, of fleet a unique chain, adjusted the our has first Looking forma of as the year. such offering our forma year the for X the a we've deliver to backdrop a diversity we've industry-wide at supply emerged firsthand We're with dedication from growth, and Pro EBITDA and XX.X%. months over immune environment. period with of of as adjusted Talent, has X.X% perspective, sophisticated and against the tropical asset being context both And of us in and are the assets cost operations, to the to having food results service our integrated model as both challenging also delivered globe. continued benefits against supply economic experienced This this and business. benefits chain, revenue our that of operate of up and helped our of industry-wide strong prior-year in Despite the forma a forma EBITDA well comparable revenue our We've from up base people, along pressures. chains supply control of our this of of not we with year. prior our versus financial consent pro currently product pleased environment. the pro pro across inflation, given our continue supply chain business approximately which earlier manage us integrated witnessed

limit our supply increasing As to initially focused we pressures inflationary on emerged, impacts. efforts our cost optimizing chain

have that been our we Value-Added such supportive Fruit and of have base that clear as our Tropical by we're segment And has customer that that's division business the and pleased in longer-term and largely persistent, increasing pervasive prices contracts, now Solids. our reacted inflation understanding. However, is

forma our and creates long-term record with in which range We're following third pleased the the group, by January sheets of in our the $XXX At of provide to details X.X% suppliers X.X%. level diversified dynamic, been and of further very December XXth cost corresponds of to closely A of target quarter to our financial EBITDA I'll for able more QX, our I provide date, pro pass-through strategy segments on the with business, net long-term the full-year forma target position outlook of working range the for presentation. XXXX. to the customers. our well-capitalized our in million. IPO. $XXX million to $X.X sustainable year-on-year shareholders to pricing recap pro is Within times, adjusted dividend target forma of billion, pro We're the largely on billion to full-year with tends on of be $X.XX our the XXXX later X.X%. end we've growth share and providing X.X% also dividend to the increases balance of X.XX XXXX, we've adjusted leverage a announced growth XXXX, pay below EBITDA the presentation. and a cash XXXX, This X, for basis will growth on in revenue to a of a of times. our Today, forma of per a And later X pro also $X.X

a Turning brief to slide of overview plc business. now you I'll give the Dole X,

an terms this category. vegetables X market, of of globe. extensive fresh Company than global produce, produce and in We are We across we fresh leader larger times variety distribute in fruits nearly revenue of the a of the largest next

as is and production, customers of distribution challenge other the distribution America value-added presence locally and North Packed of America America, projects rest X. Fresh Produce. categories include North Diversified channels. sales Dole of responsible Africa. from Four providing our -- across The well XX Fruit, the of Europe. well over has Our Europe, fruit salads, the Fresh primarily as in with the around broad the America our and Middle markets, countries, and - sale the over are such Latin bananas, are pineapples, and but a of two wide and Vegetables. sourced for parts marketing, -- for We've sourcing, geographic in and with are distribution The sourcing services. in pineapples, Asia, have Fresh divisions world, farming, division diversified retail, the meal variety markets, plc and own food and Vegetables, from being are of Fresh largest kits. Fresh commercial and positions which various in salads, value-added cargo Fresh America is prepacked both Dole Vegetables network world, and East, X. grapes, also Packed regions, served Fresh farms. from service X. of Produce divisions Fresh Produce as our tropical as EMEA. leadership operating we North for responsible Principal responsible Vegetables, Fresh salads Fruit Diversified PLC and bananas, and as X. and Europe wholesale,

focus and organic a expanding and the berries, have faster growing produce. is and Produce presence in a key sector. avocados, overall Fresh product also within growing such category food indeed as We categories

an of towards well-being, to diets shifting physical footprint. reduce increasingly vegan their and plant-based, way and their are mental sustainability, improve and and on We their own and focused health acceleration trends. Consumers driven by carbon growth seeing health wellness as they're are on vegetarian, a

giving still of that availability growth manage in Total final ability XXX,XXX plants. XXX Produce, we we the land. use highly some hand just growth as over the a lever pack is As over with In and have. We're next the Dole operating X, that combined you, manufacturing to We we've a Slide itself highly salad At sourcing XXX annum the point is facilities category significant potential and operate enables throughout for of X own XX geographical costs. and valuable illustrated presence mention We base over multi-continental model, This XX flexibility operating result, with X.X% to same. product plc our M&A in over the for market experience facilities acreage, consolidation. year we on annual One cold across X storage and distribution owned remind the and strategic as do the to as of further focused over well successful fragmented to expect operate years. wide into houses. per including asset plc, Dole and the enhances is that the facilities acres we globe, insight to

of Dole XX ships ships operate ships. currently delivery the included ships, year, Another important the took fleet out earlier charter. two own is strategic XX Dole we are with this asset on X ourselves, XX on in those the of of Aztec our new and And We Maya.

and Our tropical from ships cargo commercial chain our and North enhances business. ships our Central South shipping produce production control. America fleet of used network are and customer supply our distribution and America to Having our for operated facilities support greater and and owned our certainty in Europe, of the XX and of provides own transparency

you an So, to over that, operations. Johan I'll with now pass to give update on

Johan Lindén

own plc, Thanks, I started have both have we morning, what new with at steps progress Rory. well how as want everyone. start first Company. my the as to emphasizing satisfaction we date our excitement Good for with to here my as Dole by

from you've forma a of Rory, the foundation As an business provides been opportunities and excellent heard already the basis on combined for pro the strong, year-to-date performance ahead.

already towards inflationary address have in Produce pro basis. been which the in represent to immune in represents as can supply to revenues. so to to and for the place In to the in our address short-term we we that In be Turning price pleased having has we response have customers increases. we're that pressures longer-term actions have needed the be inflationary increases tends offset diversified pricing relatively our forma issues current chain Vegetables well we pressures the XXXX. and pro to with looked of passed any proactively. Fresh on we take progressing so In and price division, and of division, contracts cost forma inflationary revenues, the quickly. Fruit from challenges, Pricing to increases a to XX% current the through the ongoing which full, have Fresh Rory place, XX, including have needed we typically Fresh initiate context, not Slide had are noted, XX% And

are products attentive that from this and in support service environment, our pleased to deliver we of focused all so also While partners, and with a our aspects customers, can the for continue we the excellent need stakeholders. supply we to and to business to know highly we healthy our chain be

with in recently, an our we been deal in the year at supply expect XXXX. This in X have Fruit. Throughout divisions pricing Looking a Guatemala and significant Fresh customers to need pressures. to pressures, for chain have increase working X more more the has Fresh place addressed. and impact hurricanes offset by Vegetables detail. by inflationary in pricing increased And abnormal year inflationary Honduras. our sourcing impact of we It's division the both being in cost to XXXX To base current and endured the the following the been of been on main which cost reasons, we the end have November are with year both challenging current

The has our suffered from Packed issue, we been COVID-XX business in Vegetables our has food have persistently To for has by recovery market in planted first market is that service market exposure oversupply Fresh reduced as caused our in to pricing, address XXXX. the own sector as lingered. possible than weak limit this part greater planting the

winter more form the the locations. pricing balance achieved the of seen the have has We in relief also market to better with as Philippine move some short-term

impact customer weather-related Value-Added Salads have value Heading by affected into and strengthening categories to of by added our customers grow and with in overcome and challenges we to relationships both help that particularly price the service by relation already further second in And EMEA our in have providing diversified our Diversified COVID-XX and been business, relationships Pacific services environment. we on range and relying have by challenges implemented growth a strong freight, America, diversified in deflationary has In year. continued significant our in grown saw on in we of customer labor, business the in the our challenging have early building QX, high continuing like in avocados. increases unrivaled both and withstood berries our business, products to related finally, The challenges packaging. have and patterns demand impact we supply address the business disruptions, inflationary

has which our businesses, strong reorganized growth. Dutch also to We contributed

by critically, like we this our Next, mention believe delivery two which which come. some [Indiscernible] that will markets, and new years asset Maya made, manage of summer Aztec Gulf to and serve ability will by numerous owned believe have we of leading to worst own ports investments from able the on on have drive to the business I costs, foundational Most our supply delays, in would Year-to-date, are of the with unique operating chain the rising of and global we challenges. forward shortages where Dole today's have equipment as to been our we we the shipping the suffered to congestion ports and and ourselves crisis out relying have teams vessels, we took insulate asset operating ground. Dole U.S.

both of our several able and additional to and our In our pineapple our team business that supply, to farms. in current by This well afforded were Honduras, new to give the the us addition been farm to opportunity access The To year's believe environmental Costa new to after environment. the acquisition we farm secured protection and to the of to size we work action us invested expand implemented, footprint additional of X unreported to it owner in the the was is looking has the us in the devastated driving for We were hurricane. chain, new our to and the growing very allows old costs. say routes position quick I'm us both of to the of reduced further this in have synergy to one acquisition of margins Rica, on ground, We're us our existing better both by drive farms. an cost growers initiative combined the vessels pleased ones. the retire bring a last integrated a as color, supply reinvest ships, come. that has significantly been succeeding the well an margin give incredible with replanting two years year sell farm X as long-term the business. the An competitiveness in adjacent in had Company's of

drive this with at on will sense source make cooling close also here, important ourselves but We in would an further steps points I taken we operations investments of to all the invested also believe delivering the packaging topic the have standalone group on and us our synergy. basis, have on give a to like capability the a year to assets the to few to target come. for it on not specific enhanced additional synergies. we to Finally, make And position city market. years and

of Food are with come we the not develop areas, All projects integrated ideas management but Dole establish quickly sustain legacy management importance, for we'd this Total and Company mergers critical only building to foster any will the executive opportunities. teams, We of growth. functional long-term on need key new and several management bring the our and are and also advancing culture our the our believe that Dole team necessary our and plc cross-pollination relationships have Produce we existing to foundation across practices success existing Firstly, existing well, new to businesses. in teams

consolidating We have in together French our integration, Africa, South where market, investments are planning capabilities. drive operations. And sourcing to where to some in new with ripening we of are presence like already some our we further made small the grow

seeing the logistic like key products and for established new for and that both We good in group-wide laying selling forecast currently cross-Company function and higher-growth is products a We're foundation have also growth Berries core for sourcing also Avocados. projects.

logistic into you hand the while sourcing will Frank America I and important strategies. and Berries in to we efficiencies, specific European give and particularly of forward Africa, you opportunities make With and our to expect XXXX, market to extension also with in brand strides financial review. progress we selling globe South that, the As further look on South Avocados with

Frank Davis

to Dole listing first as I'm be earnings following reporting Johan. quarterly plc, New York you, very Stock Exchange. pleased on the our Thank our

information release, on already been plc's in we've press outset, a prepared the the earnings. is today, As pro mentioned has illustrating to basis, at outlined referred Dole financial our and forma

As financial the This IPO. information presented with if on XXXX. the merger, consistent the in Form refinancing methodology IPO, in is F-X, with had X, forma January occurred SEC connection the pro with the and filed

strong the has X.X% year-to-date by of XX, revenue was and increase billion pro the Produce plc forma $X.X Vegetables to divisions the end at driven Turning result, a The pro September. Slide growth in Fresh to Fresh the in division. forma up delivered first revenue Dole year-to-date X diversified with

primarily third Fresh XXXX, Fruit is of forma strong the Fresh adjusted Fresh vegetables division first year. Produce-EMEA. forma a year-to-date of EBITDA prior division, to compared is due followed $XXX.X by quarter Diversified salads. EBITDA is year of for the half million revenue by For due an XX.X% well to The the decreases weakness ahead and business from Year-to-date as EBITDA value-added increase first in the pro in in partially the pressures in market, inflationary been This XXXX. oversupplied months by increases offset X to pro in to has X.X% up the million EBITDA of Packed $XXX.X the Vegetables our fresh as driven

EBITDA Additionally, at outset decrease business Fresh due weak for of XX.X% third to the predominantly -- Fresh the Value to in driven quarter quarter an weather Pro Packed Produce in in Added is adjusted XXXX, the in event Salads. the of year. in the The Fresh inflationary and of the headwinds decreases was Vegetables for Diversified adverse of XXXX. EBITDA Americas world, markets and third by due decrease rest down Vegetables quarter XX.X% versus comparable our forma EBITDA impact

EBITDA experienced we the the last chain to in hurricanes. impacts supply year's Fresh ongoing division decreases following due Fruit addition, In

first year, the months to increase pro basis, increase charge to to of in adjusted attributable The shareholders. million months XX.X% adjusted slide. $XXX.X next for increase corresponds X by the XXXX. income net On of an earnings non-controlling the in X increase is increase and an EBITDA first forma predominantly due in a the which the from offset a Moving was forma depreciation to the pro

throughout the Looking the the with in the which more hurricanes supply the in inflationary starting Eta the seen chain has Fresh impact Fruit, and year And cost Honduras of by Guatemala year, divisions detail we have recently and pressures progressed. caused have as from Iota from increased at November pressures, now in each more XXXX. and

have including our have we positively, of also good the more new delivery the vessels supply cause. to and improve year Dole first own However, of chain, continuing optimize been Aztec our the pricing Maya, in seen market our the Dole taken X and half to

to down Europe, part North was lower in pricing in versus as forma as banana North in in pro cargo, North revenue quarter growth well in cargo pricing Third in pricing due well per year lower for pro markets, offset and Europe, by markets. bananas, growth lower and higher bananas America banana pineapple lower higher all volume America pricing due up revenue across in X.X% year revenues as in price as North freight as in the volumes prior volumes rates. commercial by to to This in as due was in higher of well partially Year-to-date and forma prior the pineapples pineapples America offset in growth America America. banana compared was commercial North X.X% higher to all

due hurricanes by cost our higher increases, XX.X% impact adjusted as hedges to lower to produce commercial benefit well currency higher by last transportation the our by on cargo offset materials in the and prior partially revenue of as was driven Guatemala performance These markets. were Third quarter from EBITDA Honduras. as in forma European year costs XXXX in as well down America continued improved supply and and compared pro change year's increases cost business, in the North

the in revenue, following benefit higher inflationary cargo the with of offset is impact headwinds. forma pro markets, and costs due and Partially sourcing the prices of of XX%, business. higher year-to-date, commercial U.S. banana the growth in largely higher the EBITDA the by For last particular the adjusted up hurricanes to year

oversupplied for mentioned has as Vegetables for XXXX earlier. Fresh that the two Packed with in based This had slide, expectation challenging next Fresh put reasons year our level to has a pack of in markets Johan X. on been products. Vegetables. market come pass. plantings be supply the greater main than to it's has fresh the additional Moving on The ed pressure division recovery would This an downward

still outlook reduce our the to uncertain, exposure. we are our COVID-XX cutting for With plantings in back XXXX own

business, through Salads significant have Value-Added pressures we U.S. persisted to challenges. the inflationary due and transportation labor the Within shortage both inland

already revenue Johan mentioned, higher lower this have adjusted the availability in the offset business, from with to increased earlier forma cost Production part in the offset due in challenges by year. the as primarily However, Salads by in customers pricing Value-Added X% Pro to we successfully in volumes was help pressures third quarter. quarter XXXX, labor of impacted in business. pricing

volume was increased revenue lower and offset business. higher Packed forma This driven better in and X.X% of pricing in revenue in led revenue. business, market Vegetables pro addition, Fresh pricing due by sold. and Fresh in a the declines a partially to mix decrease Value-Added Packed Salads In products Year-to-date to strong lower the volumes by demand

forma EBITDA persistently inland transportation decreased pro increase. well XXXX, Packed labor, markets. impact weak Vegetables to as in packaging due inflation to of quarter by in as The Third continue adjusted Fresh and XX.X%, primarily,

in of in on However, these the some Added Value action in the prices increase started to also quarter. with Salads early taken offset customers pressures

earlier. XX.X%, first the Fresh months, weak market primarily challenges EBITDA, adjusted for mentioned nine decreased again, persistently impact and forma to of the pro Packed inflationary due Finally, Vegetables

the category partially Produce, primarily strong kiwis X.X% due various up third revenue more by a X% some challenges rest in world. and business. Fresh pro North by growth Americas from Chile, quarter fruit to months the due Pro Diversified incrementally to export growth at in nine was performance XXXX revenue of in higher offset, from of business. in up to revenue and was apples export forma port-related and the American primarily first Chilean and for XXXX next Looking berry forma

pro the the offset XXXX down Chilean during in for year, Berries. by continuing of quarter was good of improvement by partially grape adjusted Chilean the Stone season events EBITDA decrease well EBITDA EBITDA asparagus driven berry the first forma part Fruit. the year-to-date from was was the and as XX.X%, impact the This that in as the and forma by Third Fruit the in by Pro Chilean adjusted weather adverse growing growth offset down XX.X%, driven with weather substantially season. in again, grape largely impacted part in Top adverse category,

and from in of and had of period. valid Finally, quarter. Dutch step-up was a in the of of incremental forma strong currency This reorganization year-to-date. offset in due set channels, recovery the offset to decreased Pro of strong A impact has year business EMEA due are months partially all XXXX, the the the X divestment of in the quarter, the the Diversified X.X% currency the for a for in acquisitions by revenues to strong from our businesses revenue has the performance translation. a quarter growth. Fresh third a to forma channels, a Produce, favorable XXXX foodservice divestments Pro contributed first incremental X.X% contribution of acquisitions by up positive movements the impact third partially this third and performance contributions across

was recovery EBITDA in European our reorganization a foreign translation. of markets as the previously, adjusted forma following the to favorable good business, as due Dutch performance pro strong up and well XXXX quarter Third X.X% across the currency other mentioned impact

driven the forma of in the of Dutch recovery pro service adjusted in our performance Ireland reopening good year-to-date channels. Finally, UK, prior and by by is food driven and the year. XX.X% EBITDA Again, ahead for business,

benefited The also results foreign translation. also currency from export favorable Brazilian performed Our strongly. business

our of believe strong market we core ultimately opportunities positions shareholders. greatest drives profitable expenditures capital existing the Slide see on and Looking our we XX, at combination, in for growth the this Company returns for strategy to allocation our investing support where leverage is on best focused products. our Because

capital in we reinvestment with the vessels broadly made While assets of year $XX will X vary made a payments our as in line million strategic our is financial not linear. XXXX. This for that at number be final investments. expense. major In expenditures XXXX, first in times, our in new of our we primarily a We will half depreciation typical with expect couple cycle

we our assets $XX operations. spent in acquiring and hurricanes, impacted addition, by reinvested last pineapple to farms unique million strategic in bring million our a that value Honduran year's In $XX

As already of quarterly mentioned January in on shareholders to will $X.XX XXth record the the paid previously, early we XXXX, on announced share, up have quarter for be XXXX. cash of a third which per December dividend

quarter, will times. focus within end our times of we EBITDA. debt of level the third leverage adjusted maintaining leverage on our Finally, continue the to was net targeted X.XX to At ratio X net

back hand like to undertaken I on ESG you group. the to give Johan an who Now update would being across initiatives will

Johan Lindén

nutritious more people In Fresh quality among it are and plc, We the sources, in environment needs population. of at sustainable journey Thanks, recommended usage, the lowest in impact. exceptional health ambitions most crucial this broad that with nutritionists. the industry Fresh is port. the new ever-increasing growing taking research. to Company category of they leaders, sustainable And food are partnership produce a eating. Proper Frank. stakeholder of the making plays science and in other water to emissions tackle by of for comparison fish the half materiality and even Increasing a framework, Dole numbers In improving consumption fruits industry environmental assessment, food lowest, is by to intend goals world produce-related the during vegetables anchored establish formally suffering from set from related to finalized production an unhealthy to for journey groups, health Why dedicated first world nutrition millions life universally the we social issues lead the an at environmental have the year. to foods towards role improvements to while continuous in.? almost to is impact is ways the latest our We're and industry worth field The doctors, to of plc fruits we and and to the delivering on a the in Produce Produce combined operate. longevity to and the Dole targets committed and of XXXX, on

This the underway. XXXX. provide X to first to to of disclosing X you X We committed emission well for full-year the include a Scope as will CDP for and will Scope that, also entity Scope back With to I outlook is qualification And our of reminder emissions pass in data. 'XX. our time combined Rory,

Rory Byrne

throughout revenue that in currently the do adjusted Johan. the still expect we're chain, suppose with even world full-year pro supply forma forma the growth. Thanks, we I EBITDA experiencing pro complexities and

pro For in of revenue the deliver of to XXXX, $X.Xbillion forma to billion. full-year range expect $X.X we the

to pro expect range mid-single-digit prior in million, from adjusted also $XXX of the growth $XXX forma the We year. million our EBITDA

in expect of significant our For continue XXXX recovery due deliver the performance robust looking leveraging Fruit division as we into base its the Fresh continuing by to as well XXXX, Honduras. customer to asset a remainder and to relationships and

Fresh to expect supply slide our relationships this of Diversified to position to chain service the to bring 's finally, closer Value-Added excellent success division Produce Overall, expand Fresh respond category, in our our to to to in offerings that businesses, our our and we remain leveraging by cost offset. confident underlying a the asset to Vegetables, fundamentals marketplace. build segment growth. by continuing our our category, we to where to deliver source the and on pressures elements customers key us to the Dole success be even primary in of us continue combine will the and expect people high-quality our out support and to our allow sustainable, strategy base to strong long-term for customers we've position this and XXXX XX, growth of into XXXX. remainder and set continue for of we they both benefits customer the cannot grow integrated of For the that plc with leverage two on And pricing underlying sales model own On

our Fresh strategy setting our Our presence capture of market on is revenue. out Value and in in growing together large growing categories These above as the such and segment expanding Organic growing growth and to well XX% growth the as produce focus levels we're total faster represent business, Salads Berries, Produce. Added on share categories circa our core at focused are as Avocados, continuing to average

provides further continue be optimize for chain advantages, goal competitive additional will Our unlock to growth. our integrated this supply and opportunities to to

of is on is enhanced division. continuing for new brand. This for with the our this the penetration in strength quality, the by relevant brand through reasons We and and in sector, iconic categories and focus main the that's healthier innovation this to expand our consumers. a brands to on also A utilize to deepen into own market continue aligned additional leading particularly relationships presence freshness, We'll lifestyle Dole which markets. brand and category its insights. customer We'll strengthening product Salads growth customer the of Value-Added one the

and very believe look the XXXX M&A grown continue fragmented through performance presented. we're we to Finally, strong we've acquisitions historically synergistic year. Market then, that the Company's well-positioned the opportunities to during on and may with opportunities. pleased of is growing, and In we the outlook are for remainder the produce we total and capitalize be closing for

global to wide the the people, as talent coupled diverse dedication sustainable our geographic offering, deliver leader growth. us long-term, position product Produce Our and in of footprint with with well-positioned and a Fresh leaves

open questions. back So, for with that, I'll the and hand can the to Thank you. Operator, line you we

Operator

Thanks, Rory. Samuelson first from Sachs. [Operator Instructions] today Adam comes Goldman of The question

is open. line Your

Adam Samuelson

Yes. Thank everyone. morning, you. Good

specific guess I and the challenges the Obviously, second of the of business about year question the in been in half. first experienced my thinking headwinds XXXX. first in performance that strong and half in So, parts is inflationary you've especially there's

pricing the there 'XX be of -- skeptical managing of think the inflationary Vegetables, of outlook full-year a your know view perspective. growth to in and the long-term some you stock EBITDA you of you things terms to the in terms that with specific taken, just get very a to you've like to seems pretty with able of EBITDA seems about that Next wouldn't it framework in were how price, in addressing achieve is in the that today, think mid-term your that your consistent that you're that remains growth would reason in, kind environment what terms of actions mid-single-digit love Fresh I'd

Rory Byrne

this XX% got compound EPS And surges total Adam. what even a do of growth around growth. the only a running X.X%. in XXXX perhaps were headwinds, you really Thanks, there, on Produce And to that basis and yes, history the XXX% I of basis. further to standalone of and of are told do complicated have line new like really think produce And we back and to is with something in mean, with we a From to lots basis XXXX Yes. merger I and a of XXXX, creation lots the fights sudden we if 'XX, then look the produce standalone strong back in numbers It's achieved world Total again. in challenges have for numbers over inflation. out on Salad we'd the at

we we've to unexpected what that we're of surprised if thus we I time for And up no haven't COVID believe thing we and think with been continue And to at on the we able And that consequences from into different most know, able the the path that operate of earnings diversity the can't those of the XXXX. in, same XXXX. that me the been to set emerged. we've out in, and challenges we reason that going are so, crisis. the been segments to we've lots still important geographies hit is everything operate by that's arising we the really across product all react for anything different much all pretty target, IPO

Adam Samuelson

Okay. That's really helpful.

a comes then So this maybe then again, to kind point. stock and of just on capital valuation allocation

sense. about M&A bolt-on talked You that and makes

with below of repurchase? leverage is use share we just seem trading well your use target. the stock now price particularly long-term it IPO of As your to range? could about kind below, slightly be How below stock capital, where the would cash think leverage particularly attractive Your of a the is and opportunistic the target

Rory Byrne

an all alternative. us, but opportunities including some we alone having allocation to at it's Adam. start the quickly, capitalized as biggest smaller is potential that the will open in the even current the we IPO'd difficult that tool to very there Company the buybacks in value, of our world. And the buy obviously, companies that an at to no it's a contradictory eyes toolbox bit keep mean, to And racing, keep point, clearly, interesting recently just I buyback. on let it's ways, doubt And Company in

the and elements So, keep dynamics, use. over our we the for that us is capital And there we're this. one on medium it's well of long-term allocation to of of the eye aware

Adam Samuelson

helpful I'll it color. pass Okay. It's on. a Thank you.

Rory Byrne

Thank s, Adam.

Operator

you. Thank

Christopher Bonds today Deutsche line comes question is from of Christopher, next open. Bank. Our your

Christopher Bonds

but on commodities, more the return, TIC Adam's remains online relief that there as the pressures. on can think we're afternoon. still coming seems transportation, good going you to even many peak capacity's like question next inflation drivers we're in it pressures on to forward. Hi, but you to if growth rate mid-single-digit but wage freight, inland incremental past first more follow-up also like and challenging, I Good be especially year inflationary hear about should labor and hear do more EBITDA and starting just want

enough protected? to additional well mean, pressure So, pricing But later I the any from their offset is you guess color see do of work Johan, -- all month. from there mean, Fruit believe areas how to pricing need should that mind, segment terms you will also other very Any your diversified mentioned in inflation. Fresh on be in you pricing is taking I whether with current you I in helpful. you actions there And that here, levels this extent additional part? like Are or to able think here, are Thanks. XXXX provide of

Rory Byrne

Yes. we in very And obviously, the Christian. a Thanks, are dynamic moment. at very, world

lots and and inflation has consequences question, of transport, consumers the uneven dislocation surges demand I As answering from disruptions think containers, there's -- been labor COVID I huge caused in to in the certain from that lots pandemic that of things and said Adam's and markets, that categories.

some like are seen There extraordinary the of events and You've that. issue production particularly nobody cars predicted. chip that things around

we business, we costs can. of inflationary our analyze suppliers, to On aspects for certain what tried in We've the and lock the mean, can full-year. I So, pressures are.

Diversified Fresh I think, to of well, well. Produce be as as in side business, said, short-term very Johan pricing tends as the our

regions used cost the of pass it tends bit and and careful of variable, variable to that to you much able to with We've the seasonal, out tend tends around division, to a to And to tends in to to into -- pricing more got in in and And customers are clear people that our major going different on changes. the depending coping little -- demand some world cost. flexibility be be that supply market. So, accustomed be through ongoing It's we and it be more way really it areas quite to analyzing. a fixed-price we're divergences be

XXXX, course looking were of of So, been who knows things just mean, last year. into the we've lots I over surprised by

of so control, can, within our are. far, we dedication feeling where with we what's commitment and as or feeling the comfortable we're and management, with And and

Christopher Bonds

That's it. all very helpful. Got

Rory Byrne

add something further Maybe that, on Johan like would to perhaps.

Johan Lindén

No.

have I to I we there little beginning were -- have reacted we think the price that And you're slow transitionary, we thought, the a in right were on. happened now, bit surprised little maybe the shocks of mean, react. a will a all there on be if the year. But going then time, over customers we not the we attentive to can we but to things we some of contracts the where time if directly into dialogue in change feel going that indexes we we, over are year, now new the building have place say to also with into contracts. see need and we we're but

be will prices something automatically, changed. So, happens, when

America. looking We in fuel place. indexes other when place it at in we're to have some But putting North those comes of now indexes for already also

Christopher Bonds

Very thank helpful. Okay. you.

Operator

Patrick Goodbody from Higgins question comes Next of Stockbrokers.

Your line is open Patrick.

Patrick Higgins

morning, that's And everyone. me Good questions from Thanks. couple okay. if of

Salads -- kind hear the Value-Added QX? and million business that, kind on a is cash performance on aware So and increases to of $XX then strong supply outflows the around Should Secondly, of that $XX and any September. to should or flows net finally, those, or How timelines entice price delivery into some the a to for availability just I end just year. we or added the the into within is the synergies net should chain of? on Fresh Interested being year-end? here, comment seen expected in quite debt. about them improvement is how into on start flows September the And And number, of we trading any you cash Obviously, good firstly, if million. we there's pricing of difficult just to them challenges slightly an received? there a perhaps ease? debt or labor difficult. How continued QX, delivery at was some be think more guess, obviously, HX, Have next of

Rory Byrne

Thanks, Patrick. Yes.

the at at of terms looking On how QX. look you and QX, HX,

outlook. forecast the the to I perspective that in in we important the best from Analyst they gave point we're at most obviously the accurate that analysts then we reflected reflection is Day have was again, way continue And I we XXXX. at comfortable look an to full think the given the the to very my is of of full-year that to course for had year. pre in look IPO. that numbers the you the to And over are the that that And that information was what believe going evolve

So, we're that. I comfortable with think

believe we obviously, In kicked Again, terms might little no on believe -- managements versus the Berries very at to to together on We're won't range we way of got synergies how we've we further whole carefully comment the in of a bit to were resource same what we external Avocados. again, to and reason bring have that the flow that outset way. And anticipated the one, together the projects. we've we're look -- the making want X restructure today having in want a as business of or elements a to IPO. we've the had that Berry progress of what might to looking the in dedicated But at get trying process what synergies, not. we different build our off the we've projects. the and bring such And a teams on at there. categories We different tomorrow and or better Johan

that X delivery, dash the and minute, with flows might the question. cash debt the And cash at again, So Frank then, net Frank, all, and think maybe time outlined of then synergies in don't terms terms in within and IPO. be X of of I know, will I the synergies the timetable and deal if second want first of you the Johan -- maybe on net flow

Patrick Higgins

synergy. Yeah, on second one maybe the then

up the and synergies some said between went build when -- XX that that So, we in when sent XX market and publication we in set to we out initial the would when and the will did the be medium-term over of we we -- out, that

Johan Lindén

time.

about. feel number So, looking for we're comfortable we for relatively next the that year

so And have progressed far, well. we

and function, logistic the we can centralized some already. benefits [Indiscernible] see have negotiating We

to they benefits certain best companies can then the that for What quickly but when Africa, explain the because avocados when also have people working it merged the can of and you other side sourcing we then -- because for well. and from to synergies comes actually that's is the the especially what's also on they're and done get do can have we've We really activities, berries Europe. South is it over they between comes That you some other side. moved tell thing going where coming progressing the

well. So very that's working

the be, we a during And overall, the hurricanes extent QX think thing where had so in And good that extent, up weaker some the very X oversupply QX. on to hurricanes you to was when half. last to happened. has add led also to we is certain Europe we year, whereas market maybe in the identified that half, again. synergies. have the development the that where because add the knew it to good also light And some first we the first we market And had is certain within brand. of had area. It expected was, tight a the so that was feel for that about to tightening it very pricing, had have the about expected, and team working We the would good use now QX there expand to the bananas

So, we comfortable. feel

what add. can Rory, that's, I think I

Rory Byrne

Frank then perhaps? on the question cash flow

Frank Davis

year. of know, Sure. towards of the Yes. end industry, the we working to you capital the inflow a as trending year, tend at this Patrick, in time our have

slight is it's but would quarter, reason down also lands, timing. that a But hope have last CapEx some the depends and will temper to slight improvement. I'd that. why that would at a The So, improvement. as I it it's maybe overall, I certainly -- anticipate expect It we well, where tempered

would improvement, timing. I For overall. the expect, slight Really, it's Patrick,

Rory Byrne

Thanks.

Operator

question Bank America. next comes Spillane Our of of Bryan from

Your line is open, Brian.

Bryan Spillane

Thank Good you, everyone. morning, Operator.

So X. X for just questions me.

have recently to about thinking I'm on will end understand increases that the the How we I it we that would how pricing, we're not? terms moderate trying extent cost. in And that much start that as the next guess should implemented of to Just you've of I expect year, and to think see to inflation follow-up. then prices? we up you pricing relief inflation extent see with rescinded thinking be to lower price also matching net do a flow having begin we or about to to that your through be will

Rory Byrne

you going if inflation category strongly. that think I so about guess, it's be receive in Brian, you the to must optimistic

I the movements can Johan into we've annual think depending what what example, done for few categories go said it the fixed on the introduce or is is element on And variable a earlier new up trying price. the fuel surcharge, down, to we're the in prices. of

other elements similar. And some of the do will something

So, you've it. got upside downside in protection and

Bryan Spillane

question, then second M&A. just around And

I that the it be And little touched things You with loosened maybe or terms of accelerate that up is could the a your peers it that guess in curious I'm the you little on a And talked actually on might the the pressure activity? -- M&A Have during bit industry. bit call. -- enhance properties earlier in interested in?

Rory Byrne

are third poor pressure. actually And well. see not you it's I at, entirely think The the Monte good. pretty the industry to under say, they of results, peers actually mean, had doing quarter, it say but like rest is the that. I -- look enormous I they don't are numbers that pretty Del fair if our quite a Fresh

or have look You insights. that at -- and companies European familiar numbers the with disclosed -- the

the a in in -- difficult the anyway. space it's we pandemic industry strong well And whole to the and pretty the negative did are pretty really managed So, keep very in fundamentals the during running -- well time. we not in industry is

our there the do and a have available us have entity dynamic us the given we'd -- being help and no, hasn't is. to of we'd hasn't that to to share that -- changed dramatic in more something yes, lot interesting So, There's this a writing a size, much would approach We've like opportunities. stronger our there make more will for fundamentally. had change But, a us like very a completely been scale, it. interesting. people Obviously, be very part seeing encouraging

So that -- -- But open examining those up opportunities. one its it's more on we're merits. each

Bryan Spillane

enough. Fair

Rory Byrne

Yes. your Did question. that answer

Bryan Spillane

Yeah, no, does. it Thank definitely very much. you

Operator

next Ken of question Zaslow from Our today comes BMO.

Ken. lines Your open,

Ken Zaslow

morning, Good everyone.

change because XXXX pricing I then forward some XXXX, about couple your Will had net of Just look profit a did that into how majeure is, the how in and questions. think compare to basis? comparable of first think the force how do a you when on Does growth? that? the you about comps much first the My your -- about benefit half, was when mid-single-digit talk one pricing, you

Rory Byrne

of course different of the the to the quarterly I quite think be out course if 'XX, go the for is you likely the XXXX over year dynamic dynamic sure. over to to compared

Ken Zaslow

we Can you add us the in some much how actually majeure XXXX force framework of too? did have first So, half to give

Rory Byrne

because that. It's Guatemala. a the Honduras going force a it's in majeure anything longer question think the to associated more force slightly both significant you're to probably of really damage for to and and don't argue with majeure -- equation for hurricane having just we had I cost compensate outage,

look I -- equation. don't a this of is this year. pricing the With entire early complex and call look we'll quarter-by-quarter at a balanced on -- course to over it's So, at this -- the an see a really a but we've XXXX, context to of got It's in little think we it's basis. that, more

'XX, year, 'XX from there we're it full-year. the but different, to year-on-year quarters confident different of expect full XXXX yes, And to So dynamic and look we maybe we still be yes, can in and the be movements at outcome. the

the covered more Guatemala and Honduras the no Force and of hurricanes than cost majeure that. really

Ken Zaslow

which is, it how I'll can about And consumers? my you're take you question is the that And talk then offline. with you've as elasticity to seen playing pricing, out? the seeing next

Rory Byrne

in to look been I if think you -- particular, I at have bananas relatively consumer. yes, think say, cheap the

So, it's been very price. elastic to

haven't We a consumption. actually falloff in seen

as at they range earlier, used said bit and a and section out, I of other that are variability of the diversified to quite broader origin. products pricing our depending You look on

selling, not et season but transport, continue the So, to all demand the in quite for it's c., we the then Chilean in with UK, adapt the the selling changes, differential same cost between example, grapes, market. say, in grapes, price, as for baseline a particular And eating bananas, And haven't price. expensive Spanish people seen on any happy impact bananas result as its low. increases. even consumers slightly though is And price as of more to I are bring

Ken Zaslow

all, on realization into on going to challenges last at and you're faced. you as question logistic my Does you And impact the have that issues synergy Europe on then particularly think and any And your of about when trying the the expand that Okay. side forward, it, is, maybe side any the appreciate the there impact seen there more I'll that? than even your time. you and it. leave brand use on cost more Have it sales of I

Rory Byrne

don't no. impact seen on our I synergy lash from have Ken. think our projects, we on any material

Ken Zaslow

very it. much. appreciate you, I guys Thank Great.

Rory Byrne

you. Thank

Operator

And comes go please question today you. from Thank Roland, our final ahead.

Roland French

morning, And the afternoon, taking on Thanks Good the you. questions. my color. I Thank all everybody. for have I X pad. for thanks Hi. And think

inflation mitigate inflation headwind? think, required is to Johan, that just that have you guess, to where Just ask, then second, pricing it you've think into like that customers up. requisite the basket, pick we kind heading And that broadly, supportive XXXX, mitigate maybe pricing running the what And should I this, is about of COGS I Just of to mentioned I'd -- date, us? I and didn't have But actions think we just taken you said been may to inflation. firstly, largely

negotiations the final think And but to have January, in XXXX. you in that by and with then do we book. today, component retailers? and January i.e., how done the those in banana context within again, work you've contract of to we about Just sit Fruit And should Fresh maybe category of large, around growth the a there's alluded still of a clarification, confidence comments lot the in mid-single-digit just for as

that. Just Thanks, top-line revenue in terms of so about into the a but but on HX margin, context this you think shape investors. leave pricing? very need much of had that, maybe there, basis clearly, a and not just even clearly, quarters, at we year, that to dragging I'll in you've stronger could representing be of i.e., margin strong

Rory Byrne

different that we're lines. and of those very increases going constructive, specific we underpins customers. that have positive elements key of the by our forward. Okay, that are of we're fertilizer operators. of we Paper we and all are that, don't process, cost the compensate to we suppose thanks, advantage, an some cost and obviously, like -- get the -- terms into up, want same to different up, our cost confident don't costs will vary game. through And to able micro terms not some We for I And increases cases that contracting, by underway the gone transport Roland. chain. the required get seeking the costs having think inflation with of I costs in around But have are of got competitive of things in us there's that category Yes, difference COGS can be at will elements price moment, the the is gone confidence our different And interaction have so the increases. elements operators price level goods for elements for in of all inflation

different segment, many seeing it's the for -- of the think all I in many, chain across our not elements inflation much everybody because but it's just in inflation pretty sudden industries. industries and you're cost

within It's -- it's not operator. particular unique as not very to a X many unique similar industry also others. Company to is So, to our

many, many conversation So, key having with a are sectors. it's with customers

the as Nash a in XXXX, that result the getting line So the to in reasons into with gave expectations set the we're versus to not process. here of down year they're for be all that the gave of we in expectations -- different customers. that with any think understandable breaking line (ph). more growing of as makes that from a during we at better terms the And the part in out But for broadly the the it IPO those. for the a the partly in growth I the for be mean, in And to time projections our FX, all we're June we with reaction money think it new bit and XXXX terms we customers perhaps productivity IPO little I of going of

Roland French

constructive. very That's much. Thanks so Okay.

Operator

you. Thank

the We in have no further queue. questions

back hand I'll for So, remarks. closing

Rory Byrne

analysts The understanding Okay. quarter. I'd say everybody first Obviously, taking come interact it's we opportunity long-term public, for to the you've our and and very call. medium-term, better we've when scale thank of hopefully of to first a one on that just diversity you thank time earnings to investors operations. had and much the group the of the hope broad got into like and the with to join and objectives and of got. that us place we we see our you better our got for the very and consistency better call of earnings we've we update our time the a the size your share earnings, support appreciation And next back as and a will a for understanding

thank Good So, much. you very day.

Operator

concludes call. you for This joining. Thank today's

You disconnect. may now

Dole (DOLE) 3 Dec 212021 Q3 Earnings call transcript