DOLE - Earnings call transcript Q1 2022

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Operator

Hello everyone. And welcome to the Dole plc First Quarter 2022 Earnings Conference Call and Webcast. Today’s conference is being broadcast live over the internet and is also being recorded for playback purposes. [Operator instructions] For opening remarks and introductions, I would like to turn the call over to the Head of Investor Relations with Dole plc, James O’Regan.

James O’Regan

Thank you, Nadia. you our thank earnings quarter and call. conference everybody, for first joining XXXX Welcome,

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

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

call be Rory. our net filings discussing per these on related website earnings be the will comparable the to of I’m financial and includes can earnings can reconciliation income, debt. the details and slides also in may adjusted a EBITDA, Statements to found to adjusted be turn financial non-GAAP measures Our to that, presentation first With most which the and statutory SEC release, information quarter for materials share Disclaimer today’s Notes pleased section measures and reports, of of The net over regarding also be are in our found today. release, adjusted found which the we our Forward-Looking

Rory Byrne

give the welcome review. by discuss of you as And will the thank joined Johan, Thank XXXX. I’m today us results who And you, our by will operations on all financial quarter for and we you joining who James. Frank you through an for update everybody. today first take

was financials quarter X-K, Dole the with this SEC first plc. the contains reported Our for which filed morning, for

and Our plc’s information the also of the refinancing pro with is filed for SEC X, presented in of pro information. reference first Form information on investor Dole with XXXX the occurred forma illustrates This financial had IPO. merger F-X January release press pro results XXXX. consistent as earnings quarter This financial forma the and in of the forma the IPO connection presentation if comparative

billion the basis Company in in Group On $X.X year Well, on our salads revenue Added earnings basis, with we call March. back in X. plan turning for line forma result of exception the than full a acquisition comparative Revenue, and discussed doubled on remaining with which recall, of results more XXXX. as the delivered Slide of a So Fresh decline, the XX% to Value to quarter, the of has following marginally. reported the in incurred the Vegetables a Dole flagged Food loss pro

Vegetables Fresh some revenues of to XX% and X%. due revenue Value a excluding the salads divisions On impact by basis increased in Added However, other reduction actually in the recall. the like-for-like

year $XX.X of to driven the in adjusted EPS operating price behind supply, pro for arising comparison. and of the million EBITDA to reduction and our of basis Eta the tight reduction Again, the also – in predominantly a on favorable recall. Adjusted reason market from in salads also impact due the the Fresh by This response behind disruption. increase the product Value business following against EBITDA anticipated as ahead last on the in comparative, increases Fruit quarter. which had chain versus was primary was year a and implemented have strong was to costs, was conditions supply hurricanes Added very last reported Iota. We inflation forma the reduction benefit of

product leading in times Looking of an the of to This this chain higher at led off disruption to our supply seasons. X.XX in outset the costs a to growing Fruit. increased This, with at of net the to due year leverage, quarter at higher one end levels the outflow cash of of the increase first inventory there together Fresh leverage has been the capital exceptional seasonal quarter. to imports year is working due cost has the the recall, during

quarter as value this shareholders continuing of focus positive have of strong our in and results on market to plenty I update. in to the on are the Fresh are belief challenges And in our of $X.XX mentioned outset, their the in during that for Building from as our the strong developments announce with therefore quarter. dividend we a aside line Vegetables, expectations outlined we As of part the the fundamentals returning last our foundation, pleased operation business.

commercial to backhaul results excellent benefiting our a strong for Our market continues cargo from business deliver services.

Denmark. affordability the sector rebrand focus European avocados, elaborate salad on Exotics over trend the all end as wellness. sustainability operations plants from the Johan, brand health in Dole further general Food product Our of and continues on normal review. quarter. continued from well adherence and benefit produce ripening to FDA can pass of the growing, its total and and who with launched Dole these We’ve investigation, Company BE back I’ll exotics, the mangoes, further and were integration you closed made with and Exotic as operational by We legacy Ireland and market. primarily to at up And our and the tailwinds the and recall in the synergies procurement, of of its for now in first and strides credentials, the of running the other capacity macro the marketing

Johan Linden

And Rory. morning, good Thanks, everyone.

capacity. the plants, to had call, salads operating our our to Slide Turning returned X. following last recall, On normal all confirmed that Added we Value

rest now anticipate we year, While this turnaround of that to was in the expected. we the than time more would a take turn positive step, vegetables, the as previously

pressures have significant of been have able we also the in of is recover clear the own at While mitigate of financial not results been QX to remain to prior inflationary and it could volume pressures. and successful pushing most we increases very inflationary the vegetable year, service start to that the our that driver looking price through that their is The are major high a impact customers recall a compared year.

perspective, deviation the from However, business. seen our adjusted is EBITDA Fresh significant in QX in more Fruit an

a XXXX. XXXX, tight the XXXX challenging in hurricanes a season As reason, supply Fresh Guatemala for November our QX to fruit profit the position, become normal to the anticipated, of In compared shows comparatives XXXX. year. their market more high continue same of of demand the XXXX, dynamics in Honduras the are and will in different comparative from more the in very favorable in following QX Fruit half QX, supply while second quarterly benefited show

Our diversified business a earnings again, have in performed base. our currency the on QX, of well importance broad particular, constant demonstrating in basis,

to vessels a call As and example results strategy, European after American commercial importance our business backhaul delivered services ports. our has another own the This to the using business. provides of cargo of of that North our fruit out primarily been business is diversified I excellent continued our want

costs. and in shipping significant business global provided has QX to months, market Overnight third-party Critical economic increased some line of the on As challenging due difficulties, is over geo inputs chain political tighter the cost as significantly have ongoing situation pricing. shown have this to the in inflation the has oversupplied, and has its geopolitical of incurred one an result we impact to has had also increasingly banana that which help significant a have a ordinary window operating supply year, the at of in paper costs costs, the performed logistics in with rising what situation, become environment last this expectations was fertilizer markets. transitioned upsetting including market of the because XX significantly shifted time supply consequences. fuel

other been the developing that actions proactive also Fruit I the is am protect mitigation challenging, in segment, both pleased important Fresh marketplace the in say but have While business. we to across to businesses,

banana supply suppliers with We already adjusting supplies important the in by have align our our own demand. working for made and to strides year,

customers worked we where prices agricultural with fruits inputs. securing We suppliers have continuity our with to increase and also of possible packaging and in all worked our have in supply

increasingly presents also challenges, Fresh see produce two that short-term strongly sustainability, we consumer to driving perform from we aspects the unusual and positioned are behavior. we difficult in that benefit its affordability believe While continues environments. well to

a leader this. on excellent we in As remain position an to in capitalize our industry,

develop vegetable opportunities see our in For we strategic as agriculture. opportunities, organics consolidation growth as and well potential to areas, such as business controlled-environment

industry. the situation opportunities both new of to player market make the acquisitions. expect we we business in the balance banana business current succeed our largest and across long-term improve and as dynamics within supply-demand complicated strategic businesses in market to see our one the our with For And

I our plan on to our continued April, a marketing sourcing to we other financial have the officially focus launched also start servicing of out sales you a strong the subdivision, the in and will and an In business. Denmark, in of give out avocados, Ireland an additional Dole market. with with our integrating activity small important new customers major within With of European Dole Frank agreed additional as and specifically well and and and needs. in growing, and exciting Exotics, their tropical Africa. with both the first exotics, our primarily growth team in hand such brand that, but sourcing developing to supply rebrand development South avocado an our over market new will capabilities group, want mangos, synergy enhancing of Peru and plantain. complemented experience existing from the in presence in our to our This Mexico for produce and meet Finally, opportunities our that touch the total Exotics review. local also of Ireland At brings together clearly with presence on the the business pineapples our business customers we procuring, our and special I Dole Danish in you Elsewhere will QX, we step as creating seen complement exports is that Dole demonstrating European with have as it present marketplace deep products expanded Dole. ripening also

Frank Davis

you, Johan. Thank

Americas $X.X Dole IPO, to of The connection IPO. in reduction to pro for a by If first Slide impact mentioned Adjusted the and XXXX and salads in we circa the negative impact basis, of EBITDA primarily pro revenue impact by the information. at As prior-year the Adjusted results last presented EBITDA revenue On legacy currency for X%. mainly acquisition forma a the F-X These on if due driven fruit a of with pro a the with already the occurred performance Dole to fresh million filed release fresh line European in to the $XX.X turn foreign translation. to on the the to Form with due increased decreased in diversified January expectations our a comparative was versus increased was in for pro merger, produce improved the within a from update like-for-like basis. forma diversified comparative comparative quarter decrease and completed the a forma the as an out pieces translation as and marginally, the consistent primarily the result is X, revenue to SEC our illustrates vegetables which investor recall the were the plc’s market the $X.X of product basis, value-added On on first due in produce XX, March. product XXXX. Dole salads revenue decreased our information billion businesses. comparative This Food due earnings fresh This quarter had by FX negative financial July. refinancing pro outset, presentation we reference of information impact billion. recall, forma a offset financial value-added quarter increased due for strong Company in plc, to This part quarter in fresh the set world. rest with first from increase our decrease in in the movements following and last forma EMEA press

forma prior due year to to Adjusted reductions comparative to in the a basis comparative adjusted XX, the for the for again million compared EBITDA. million fully first year decrease was prior EPS was on $XX.X million, and adjusted decrease comparative the on a adjusted was with diluted basis. pro due to $XX.X forma pro net to in $X.XX on the Turning $X.XX, basis $X.XX and quarter forma in lower pro The $XX.X EBITDA. compared quarter predominantly Slide income the a

higher at volumes as revenue fresh Johan, The forma in with and for prior-year revenue performance segments bananas The was an XX. for and bananas America expected, continued Looking outlined cargo reported and by against pineapples and pricing as business. North by in lower starting Rory each more offset and America our segment by Europe comparative pro against the EBITDA declined driven increase and Slide was Europe the of fruit detail comparative. commercial strong a strong and from and increase This adjusted period. a in in in North higher

end impacted by costs offset conditions cost due prices our of were by driven supply in the of to quarter product tight and the higher fruit the adjusted the last and of Higher input performance XXXX. hurricanes negatively following first The markets year These had at operating of of distribution partially in strong EBITDA business. of a higher benefit the of first commercial higher quarter. cargo costs cost strong core higher market

diversified higher like-for-like the the particularly with $XX excluding increased On across currency prices M&A, pro line UK. million prior-year division, to by the comparative. was most of by Revenue revenue, growth seen basis regions and driven across and a fresh in foreign was the largely impact produce on as movements Moving revenue Slide foodservice good in EMEA XX. forma

in the reported first against to million on revenue in a decreased The due the as channel. year was a by well as in foodservice Europe, pro strengthening in quarter decrease Adjusted performance the the timing unfavorable versus translation for U.S. recovery of prior trading of translation. $X.X impact However, EBITDA the currencies, driven due by forma Northern from and offset foreign part logistical adjusted sales, impacting comparative. currency the result as impacted certain South to of dollar EBITDA was the challenges UK strong in European a African

to recovery North well and diversified impact season XX.X% was prices of had higher prior a the cherry by South of on mainly by forma year North fresh quarter revenue in the Adjusted selling rest American by Chilean the Chilean the prices the a increased in in of business, season the lower produce to first at majority businesses. first Turning the increased in blueberries. selling versus higher Americas driven in EBITDA heavy due driven increase grape part The the XXXX for as revenue world, which XX% volumes. pro quality strong for rains America, by difficult offset of We in quarter American end comparative. development the very and saw good average

vegetables COVID-XX with certain was finally, on of partially this higher of a to However, vegetable categories costs costs travel offset and resumption the easing restrictions. by And Slide fresh XX. turning on

significant call, earnings our had segment value-added of a for in explained on the beginning impact the the the year year impact at the full results recall quarter. the first salads on As of operating

all that full resumed the authorities the have the plants operating during quarter investigation. at are capacity the and We closed pleased

increases through justified We our working on restore continue SKUs. to to customers focus pass and with inflation to lost price

We to million cost decrease the for which from EBITDA negative the vegetables, financials, stronger In there lower XX% fresh plant in followed packed closures. and $XX due arising closures, the Revenue $XX.X significantly absorption, impact decreased pricing recall recall terms and plant was offset of lower partially the or adjusted volumes. revenue was of from to arising by which incurred and loss. quarter was the in contributed lower the temporary of million fixed plant volumes by

packaging costs. pressures We inflationary also on to freight, labor, continued and experience

we are than to that turnaround the we price earlier, do with continuing through the take will anticipate this progress but expected, due mentioned we made, which in As managing inflationary segment the pleased longer initially predominantly are increases. pressures,

XXX renovation Moving hurricanes to the on expenditure farm the $XX capital incurred XX, and this in of Honduras the quarter. spend we Eta the routine was Within final Slide Iota. following in of million acres

July today our cash first on $X.XX share, record to pleased we for June are continuing commitment XX, per XXXX announce quarter shareholders pay the a cash We to the shareholders. X to which return on will dividend of the of to

at the quarter mentioned, Rory capital outflow it a during inflation. working end to leverage to as typically times. And this input ongoing disruption and quarter the first was experiences cost The of net X.X year. Our of higher business chains has been the due year the supply

of cost the of quarter. during the cash had one-off the recall impact million We of also the $XX exceptional

Now I outlook full to our remarks. closing an on Rory, give XXXX would who you to will year update like and hand back

Rory Byrne

that Frank. profitability the environment. vegetables other to to less U.S. our Well, reduce Europe strengthening Supply the believe a chain and significant EBITDA translation. rate volatility with us slightly against doubt We to the in exchange than $XXX U.S. situation created from has it of range European operating continue you, earnings there’s on return our operating full a of euro million of prudent the our anticipated European adjusted disruption, a businesses the resulting geopolitical inflation, challenges. in slower reported dollar predictable no $XXX Thank dollar provide With lower to in all business year currencies, and guidance million. impact full to

to best operating company returns and strategic develop indeed a normal are and most environment. meet that the currently largest continue world the asset the challenges to with diversified in as to sector and the to very brand, are We all grow facing unrivaled we well-positioned more the base,

this expanding synergies; Dole situation such continuing avocados, capitalizing to our new continuing across display; fast-growing monitor out the managing that on focusing in strategic our group, the berries, on presence focus of and to firmly markets Europe; Russia costs impact geopolitical on of the as organic enlarged salads of the synergistic the M&A the in businesses, consumer particularly markets strong new category profitability operating opportunities; as targeted business. brand bringing integration demand lastly, actively continues Ukraine return the to management of in the to as its ongoing and to XXXX, following business our we’re produce, categories focused and within seek and our of to the value-added customers, new For remainder on and on our delivery the well value-enhancing continuing priorities: and and assessing

business resilient quarter anticipated. and will our I’ll the that on look had we first are performance to deliver So us the our we challenging hand were And that you the a remainder Thank in with with you. We pleased in diverse for delivered the models can enable year closing, line open what exceptional people back of business operator of the with and we confidence during and to with line results the questions. that, the targeted to ambitions. and

Operator

please Thank go you. Adam Sachs. Goldman our first [Operator Instructions] today ahead. from Adam, question comes And Samuelson,

line open. Your is

Adam Samuelson

everyone. Yes. you. Thank Good morning,

Rory Byrne

Good morning, Adam.

Frank Davis

Good morning, Adam.

Adam Samuelson

Good morning.

I clarify just just other and is the versus the So unchanged. of first the revised change to to to the kind we kind FX on outlook all you’re EBITDA guidance, was salads just guess, make outlook beyond of question be holding to attributable that that the the you sure that can really quantify of clear pieces

Rory Byrne

mean, and XX-XX broad Yes. between terms, probably I salads. on it’s FX

business seen unusual their such unlucky very, up from struggling that getting results it’s as and last well just made environment. a there’s the an few will you to own progress we’ve the environment little business, to more running, in over new but inflationary the we’ve weeks salad business to are the the ended have as in adapt salad I up retailers the mean, do. and very On in good

XXX FX, XXX profit dollar little year obviously comes a XXX, big start mean, if to a Europe. around of week, going a ago, last to I the it’s at go So at longer. you and somewhere this of And take year the chunk from back bit our

translating it back purposes number. into So that obviously, for the U.S. dollars down reporting brings

it. they’re components So main the of

Adam Samuelson

the of just of you feel the in on Any of and and elasticity those incremental cost demand love to then freight get part how And being you’re to evidence about in the seeing on potentially how whether And fertilizer, both would you pricing inflation point categories. with how and your brought marketplace. feel kind various incremental you’re that received consumers updated able pricing retailers kind Okay. actions or of you in where recover the of then up is year. it’s fuel thoughts later inflation or kind packaging costs in

Rory Byrne

short-term of our businesses, success In inflationary have in our high the prices. diversified which On adjustments getting doubt We’ve much pressures contracts, the pricing. successful in pretty the getting been no business. price annual through a of that There’s pricing through we segment Yes. had pretty that degree continue. in

that less get generally I terms buying of inflation to whether economic short-term, just right between the base, buying and think themselves the in period and the giving long-term, there’s a reacting people chain to elements And of increased balance all how of power. for having of from retailers adjust react more consumers, cost having adjustment other wage trying the to the power, demand it’s consumers. trying to keeping

the moment. complex there’s at underway So process a

In changes prices the are terms neither no much the down, to new there. to pretty due up adapting in of elasticity, demand out consumers material nor

retailers margins backdrop and the with buying themselves, constructive their nothing own of of all we’ve we’re appropriately. trying our and the sector, ourselves that all good as there, to around. into less it no a profit we react trying but environment But power, there’s had concern overall suppliers the customers pretty consumer making maintain just to managing with predominantly believe So progress having dialogue inflationary from complex that strategically doubt

Adam Samuelson

could and if Frank. I is maybe more And this Okay. just one just for squeeze

think the since Just cadence, was of for back unusual last of you. I about quarters year, of quarter half on phasing layout the somewhat think the earnings and second the any think kind we obviously I as council

of over year. think layout council how we the any So on earnings will balance

Frank Davis

Yes.

in because phase said As was the – year, the stronger of the that half stated last the there reasons we announcement. we in first there, in that

And more in comparable the outturn – probably is the probably the So XXXX, we one the year. recovery would would recovery a comparative of probably the XXXX second direct half for expect comparator. be more – probably

Adam Samuelson

That’s helpful. pass Okay. Thank on. really you. I’ll it

Operator

from our Stephens. of next you. comes Ben go Thank Bienvenu ahead. And question Ben, please

is line open. Your

Ben Bienvenu

Hey, thanks. morning. Good

ask to you’ve talk the the When about want revenue the to additional about take look taken provided this price, that – you you you you you some I pricing impact there? buckets not into like maybe of it incorporated there any haven’t but versus so just expectations I mean, a that’s demand incremental FX be morning. sounds guidance So elasticity, would plan that mentioned there’s volume of price. the helpful. Can changed, lot at clarity update

Rory Byrne

Yes. and a an on parts, I’m back few I impact wrong, a guidance, Holland period in on the press we of $XXX of in there’s million which mean, negative the year, moving business we it’s out revenue. Ben, some it. the think correct scaled release, impact me I revenue if something last call was in FX,

of quite speaking, the our the volume, year. And business. it’s So significant volumes then magnitude level given broadly in holding our for

that’s So Ben. of summary it, think I the

Ben Bienvenu

be what it’s hear. helpful products otherwise? innovation that customer inflation encourage doing you or would whether or your within changing what say, to it about to products you defensive U.S. talk how talked would are the consumer internationally. understanding both then There’s about – – shift And associated habits your the guess, the customer sell you is definitely you you’re and guys spending with is Could engagement particularly inflation be the acute and Okay. purchasing headwinds maybe with your – in consumer And I that whether purchasing are then products, basket. but you Europe. in the where translational

Rory Byrne

the Yes, I in. mixed we mean, that across there different are markets trends operate

increased. retail the tasting brand service try ongoing base and as underpinned a in to of our products first we’ve post our where Some are programs the do markets pandemic. recovery U.S. in activity and and the with has try particular business, in food standout that gradually, in store market of UK Dole business consumption our the food lots that of particular. is recovered of with interactions seen service other encourage lots We’ve to The

power consumers – had impact overall fruit. think material the hasn’t I on pressure fresh a buying So on the

I are think healthier to eating people at trends. look continuing the

from are in still pandemic minds. and post health people’s wellness is a we I think getting benefit some big factor where

anything Johan, know, could don’t this? I on So there further add you

Johan Linden

mean, hit very you our are it. think I I looking affordability, affordable. for No, bananas customers the so are

change going we added don’t the They much. are into higher their habits see are as more people So with buy impacted. We see – bananas. still not people buying buy very people value incomes. They

traction in see less still promotions, that. volume. So therefore, see and of everything, comes also And relatively are we basically I coming business, categories that COVID And salad when we to there in were and all good those are diversified there it to demand. different back, in because category. those want add our driving good we and also especially And promotions also

in the that good produce. affordability – So we still overall focus volumes feel on therefore and we sustainability, with good are very place and we within relatively see

Ben Bienvenu

Thanks Understood. much. very Okay.

Operator

from please of Chris, comes Deutsche go question ahead. our Barnes you. Thank Bank. Chris And next

open. Your is line

Chris Barnes

particular guess, be balanced be to is balance just to the supply good you to or of that the going expected second wanted adjustments any Hey, that weighted of called guys I the impact quarter Is clarify it out. quarter, like, first, just banana the I year? afternoon. throughout the to

Rory Byrne

Yes.

Johan Linden

the… It’s mainly

Rory Byrne

Johan. ahead, Go

Johan Linden

Yes. markets, of adjusted cannot we they for as in markets of Therefore, we now when market in adjacent bananas, were the – normally strong the an those and adjusted off half normally, supply. the because not of volume a but year It’s bit pricing. impact in the some because of fell especially, mainly year, the good we Ukraine, is war for long balance, first little the go very because the into

you not So would see that impact second the half. in

Chris Barnes

about drive comment could actions productivity But you you’re talk you And recover pricing I to Okay. savings to just inflation. actions and a then, cost Got what it. lot today cost other mean, on what environment, do EBITDA. I inflationary from you here understand to organization? extent protect just retailers to to other increased mean, levers the pushback to the as the like throughout receive adapt have you trying taking

Rory Byrne

Yes. of mean, your critical I business, at take in times this all a to Chris. look like aspects

start the European of up we’ve quarterly to to So U.S. – over get to office IPO, to GAAP intensive been little react we’re trying associated at admin to obviously geared structures go now, all And needs of a the at our to numbers. back we’re that reporting, we program going can conversion see all our bit a if look streamline to cost very with further.

better elements business own our looking picking, focus automation, ways looking probably of there there a doing our a side, ongoing internal a on I things, we’re So obviously, increased production at times on within can ways of of we at if that processes, even our heightened process costs, better amount that way packing. of an efficiencies. of costs. our during is of do. better as there’s freight, internal there’s part ongoing own technology, And, these limited are And But constantly the mean, that’s all

the sectors. to inflationary wide, getting increases think the offset ships, have and been the it’s of wide does services, our of our trends that terms customers getting a these wide, on it’s as the some working closely price highlighted through across then We with understands. we’ve services. from backhaul Johan not because in consumer range unique everybody sector, balance right own balance of to the get our those But And I

can at the administration close So to We of marketing close from right further a the incurred self other of do if microscopic production lot a business. look through at efficiencies extract we a how do in all all any and we costs And from business. see the to everything this. take through it’s hard help look and aspects

Chris Barnes

liability clarify Thanks. receivables very Okay, have one, just from a That’s on you may, transactions any actually it, if for facility, color, you last financial I just to if Rory. could helpful And you utilize the perspective? extent the recourse new those just great.

Frank Davis

can put no one. part we in place receivables if together, It’s company. – a that, putting recourse of the facility, that it of that what package we receivable. financing this $XXX And no facility. a salable answer the I use we there Yes, and recourse is the agreement did we as those were overall to is million under element there’s final that Basically,

Chris Barnes

Perfect. much. Thanks so

Operator

French ahead. Davy. you. Roland, And question Roland next from comes Thank please our of go

Your line open. is

Roland French

there’s profile, into what have clearly, in with of starting my context with couple you on targets? out through in in and some A of timing XXXX balance dial QX remarks. opportunities working Thank maintaining might Xx side. Start you, your you the potentially capital sheet but trying just the And just prepared good called to and that. firepower that morning some questions consolidation leverage Maybe gents.

Rory Byrne

to Thanks the to we Roland. from if going answer find as arises. a just we’re you we’ve long we’ve have balance Roland, say to we’re found facility. not always I in following the balance. for I of you And current between enough the going that, can Yes, only us stretch And thing the an confidence is obviously, appropriate the to environment mean, every that be the opportunity time, unduly right know terms cautious, capacity in package

But of take opportunities conservative it. be got to appropriate the at doubt to able moment. we’ve we advantage for So be us. will about No

Roland French

it. Got

the that there then bagged terms can fresh just the the whether you business, of Okay, of that within an business? salads the located in thanks. reduction is guidance, predominantly in And is packed too? element in vegetable Or confirm that

Rory Byrne

in bagged Predominantly salads. the

Roland French

of backdrop that any in packed? industry fresh color in And just Okay. that terms

Rory Byrne

are side done we’ve that. things? where better want a this further packed, so It’s on lot we’re of we of business. work the fresh Johan, I comfortable on packed to don’t if know, in In that fresh a realigning pretty add you little year, and performing

Johan Linden

working. and took is on. it’s cut when last working approach some right We an you’re and industry we year – No, the it’s strategy well, and did that volume back overall the

Roland French

on, finally around update maybe of that scale the And include maybe the some synergies business? maybe any Okay. on parameters Exotics Thanks. just within and

Rory Byrne

emotionally comes according to we’ve is Ireland we done a and we last did during in working the the that thing synergies then Denmark. a say actually a and are rebranding main the but thing, when small quarter and more plan company to much Overall the it it work It’s you brings same company. it’s quite for when big you thing really together also

have bit and whereas late-mover’s expensive we big competitor believe of a the going some that big And become the are ambitions Holland, in warehousing a size from the step, try now our separately extensive very European were in and us actually infrastructure are it comes people have major avocados now the relatively ports, in to one players, network we to lot of it’s So advantage and medium is we the differentiates we that to main built-up little in small together, of a when markets what let’s going a to the have good – position. that a had in because the rest we difference use the putting but say but very had it of we step. we players important Exotics, And network and focus ripening markets. and

the closer So be closer customers step quicker we to are markets, to one adjust to be jump supply. the to to going directly

piece believe in good the business. of big we a take to So avocado we position a very relatively are

Roland French

very luck, Okay. a best Thanks Frank. Guys, that’s color. much, and nice

Frank Davis

Roland. Thanks

Operator

you. And Montreal. Ken comes our [Operator final of at question Zaslow Ken, go Bank Thank from ahead. the Instructions] of moment please

open. is line Your

Ken Zaslow

guidance came any questions, the are was banana change that weaker, guys, didn’t banana in path does oversupply just Is in how suspect guidance Is and what is, that for you? And Ukraine absorption, if you back? one for bananas? come business if your recovery didn’t bit little the why to Hey is it out? Ecuador if just way, Is Couple a the advance the but your of – change a how it issue? an little Russia it that do lighter? actual you play that wait

Rory Byrne

Yes.

a invasion. obviously since line its banana Russian/Ukraine pretty pressure Ecuador exporter come bananas it’s XX% Ecuador think largest business primarily of in issue market is came for and has country; our under as in I expectation. of plus terms a in single our the still with of the that in a world much big

may there reasonable of costs and is reasons high You phytosanitary of not And of It other of is pressures over and banking into lot is capable not of for is it indeed it’s the market. risk worth XXX Russia, food the look may and the fruit people basic amount sanctions. a but because reward from U.S. or costs that incremental so the are that are are the at time of – lot recover supplies stabilize that there a the now Ukraine to market, because it. there not Belarus and a market but fruit million still bit, going sanctions, little a the a going into European subject the

back the is food volume a Russia an supplies out So over of in of degree a reduction Ukraine so. total the in And to ultimate – ends coming of – both on and going ways long-term that’s over outcome see higher the depend uncertainty. the we and normality. it’s Ecuador that where whether to get coming year or But

in our terms the think those taken big markets, volume excess been our our control chain a supply the and work and have I lot broad supermarket to we’ve actions to our American in have of North over market are of particularly business, left by with it us affected the the back environment. ability current strong business, ships into the a banana cut markets markets through into Northern own way to European

Johan Linden

Therefore increases end high came year. first because the the comparables we the we supply year so up that to as our down. are good this prices able of very again, good own tight been ocean basically open been able had price can prices that the in Maybe we and position been competitive, And in a year, able a very the prioritize you is to volume. we’ve space, in at push just prices ships, if we some same the means cargo banana were which sell half put we’ve be has been through. been add this to over business I pricing we’ve to and the since on level to Then last that have position we to look where a able in renegotiate really last year the of good if continue had there, we business Rory them then

have So we same full prices the in this this high half, that’s year when of to year year prices last the the the instead had explanation. we’re for going only first

Ken Zaslow

follow-up. is next question have The Perfect. just a I

some that You accelerating. promotions discounting a do said of increase? promotional price and that the but you’re work? is prices activity some Is that price does the prices Net-net promotions you able How versus balance increase? it work? racing How balance still how does the to of is raise actually

Rory Byrne

price It’s had the that produce. with during to a during us and that for it the salads Value just impossible It demand increase. period COVID in the right in Added staff to made stores that there, we for is increases people,

there possibilities not was – any there do no So was to promotions. pricing

they the Staffing different volumes supply in balance need they in in a Now stores on position the maybe a we are to great have drive retails, in but when again. our way. a is not

but there but increases. taking increases, yes promotions, it’s We not price price are are from away

Johan Linden

count to boost and they but equation, material the try not think I consumption. tactically are to used maintain and overall

Ken Zaslow

Great. there a And then very my you that consolidation opportunity. last is question said was

interest that time? and when like story, the accelerated I it appreciate you believe division I’ll leave if you there think didn’t in seems typical said it in, it. you I an something I opportunity? a strategic just said you stuff cause your mentioned of always vegetables. you that on always, I of there was wanted it and consolidation that know Is vegetables to Is but have consolidation you’ve elaborate that kind

Rory Byrne

and players the in individual But the all specific going segments. positioning there’s we’re those the dynamics you around the obviously and close think No, that but And Fresh looking have and there at, look on reexamining particular there’s constantly to imminent that that. are always business nothing change with over Vegetable we a for of we’re nothing highlight. year strategic in the there, opportunities last do

Ken Zaslow

guys. appreciate I Great. it

Operator

Thank you.

further no have We questions.

to closing So over Rory any back I’ll remarks. hand call for the

Rory Byrne

you. Okay. Thank

Value that we good very Added in had made with on we progress difficult salad I the think scenario the summary recall. very some just

bit little against unprecedented the backdrop world recall that lucky of had we an Just living such that we’re a a in. currently

I a of lot think work. we’ve done

the to track The more do. the on for us has to with a bit dollar little of become haven, dollar unhelpful that’s little safe the where We’re sure. back strengthening a

in strength, I forward a more global our the infrastructure, think to fundamentals, to and world returns through very future this get way a well-positioned normal hopefully our levers, then place when moving in years. our satisfactory year

very joining today. thank So us for you much

Operator

joining. for you concludes gentlemen all this call. and Thank Ladies you. today’s Thank

may now lines. your disconnect You

Dole (DOLE) 24 May 222022 Q1 Earnings call transcript