DOLE - Earnings call 3 2023

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Operator

Welcome to the Dole plc Third Quarter 2023 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] After the speaker's presentation, there will be a question-and-answer session.

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

James Regan

Thank you. you XXXX the Webcast. Earnings thank our to and Quarter Third Conference everybody, for time taking join Welcome, Call and

me Operating today Rory call Jacinta Devine. our on Chief Officer, Joining Officer, Executive Chief is Financial Byrne, Johan Officer, our Chief Linden; and our the

our note, federal law. any expressed range forward-looking the Plc revise may may factors, time During Rory. set which that of may we statements. Actual use call GAAP circumstances on our of other to and related update the to in referring include within are available will statements a to Please outcomes releases. to today's supplement With wide to in certain section to slides or filings reconciliation forward-looking from those the that, obligation to found website. release measures and this or most remarks remarks, our of and today securities Dole earnings will Investor measures. call, the the Relations differ the those materially these, Information company regarding the turn the be be provisions presentation any results SEC financial includes or including and due press implied be the expressly release they at I'm These also the are made, over press along pleased with our non-GAAP harbor of forth disclaims safe materials comparable reflect

Rory Byrne

thank the Quarter. as discuss for we Welcome, Third Thank today and our everybody, you for you, us joining James. results

was $X.XX and revenue diluted to by to primarily another for first EBITDA EBITDA of Well, growth, for following mostly very the due adjusted are highlights year, financial performance interest in the revenue So reduction largely share X.X%, Quarter. to higher year, compared driven the adjusted X.X%. earnings We on Third increased higher for Adjusted by and our quarter we turning produce good to the X diversified Quarter. driven delivered year-on-year by result report $X.XX the Slide fresh from pricing strong per X Third prior half increased the segments. Group by our and the for with the expense. pleased

in on to in Honduras capital Quarter. to and we the X.Xx in cash optimizing management proceeds proceeds with and these at are of to focus leverage realized sale lands balance pleased the $XX working continue of group, excess report end Hawaii of in our reduction across sheet, were that from the We good surplus our Combined million contributed to the net a September.

Slide to turn operational highlights. I'll now So X for our

Our to strong Fresh another competition are our operations, 'XX driven of commercial The from in result intense a by of which Foods the to performance compared was continuing from perform balance costs spite cargo North good marketplace, segment result continued operations benefit to QX. in in In better supply-demand our America, the European in higher lower profitability. impact sourcing XXXX. well on delivered

we a and dynamics approach extent, important we're the and in monitoring most pineapple the production the Ecuador supply remain variable the and in in year-to-date, in as have important accumulated of Nino in the rainfall of impacted always, very of demand remains high market impact volumes to variables market As Weather end XXXX. particular, prices. levels and which the El spot banana lesser

to that sourcing maintaining supply focused customers decrease we've year. our base Nino we date, service and if and very supply is continue we forecast to persist. To managed our of by irrigation in challenges next keenly tight drainage, currently well on for the remain flood optimizing well farms El challenges even posed line protection good The and is and diverse so our

to EMEA then diversified on business. our Moving

of the continues another to higher half continued has as segment and quarter EBITDA the Revenue strong revenue of its by momentum year, Our pricing driven adjusted growth EMEA delivering diversified be benefit good first well growth. after to benefit the translation exchange marginal from translation Fourth from a FX as Quarter. further see the current translation foreign we we XXXX. currency expected rates, experienced expect And headwinds at in in from

We make are base and and synergies segment. our in further good European of marketplace. across of efficiently supporting seen across and continue delivery to managing ripening, this progress handling by We've investments benefits the the expansion pre-packing cost our these

delivering group. Altogether, to positive end and expecting continue execute to we're opportunities have XXXX value acquisition identify are small to in the also on We bolt-on segment. that a for this

from are performance allowing benefiting we a Our Fourth Diversified favorable the export for had an in regard chain in comparators. improved also. conditions stable Third performance anticipate year Quarter supply more conditions, in better a the prior Quarter, Improved this Americas segment XXXX in and

the is most market, the performance in lower market remains North the by robust pricing, which offsetting the of Our and stronger category. in American across driven some ongoing in commodities berry challenges volumes

year, the delivering strong the keenly focused of and such and of remainder on Hemisphere a seasons the start the important export of Southern to our our customers. cherries some to are grapes ahead and we service categories Looking as

Turning the to Fresh Vegetables division's.

need however, earlier regulatory As review. play we the Fresh so length concern cannot updates substantive we sell let announced year, decision our Vegetables to this, Division have provide regulatory that and is to regarding do, review ongoing. We We Express some our still any this you review to of the out, today. do Fresh know, the

to our While to stakeholders, able outcome the business. if still, otherwise, the are due in or we with is the for to combination not remain regulatory best reasons that all transaction close Express view, Fresh committed exiting we

that We doing areas. continue accelerating business believe core of our so growth priority in strategic our will benefit to

I'll financial to the review. that, hand to over give you with Jacinta So

Jacinta Devine

and everyone. Thank you, good Rory, day,

And EMEA group segment Foods strong in X.X%. benchmark. On year Revenue delivered adjusted results basis, increased basis, Fresh Slide the prior Fresh the world Diversified increase Produce increased Third on the and From our million to Americas EBITDA was a key Fresh of results Diversified a pleasing. a turning Firstly, rest like-for-like Quarter the in million strong perspective, result on to EBITDA the Produce X.X%. growth group were like-for-like a or increased And and million $X $XX $XX.X drivers. X.X%. Adjusted very XX. a against were for

For and net sale year, $XX.X income the from EBITDA months compared of XXXX. XX $X.XX million million increase million. The $X.XX the increase from to driven year. was XX% compared million to assets of and Diluted by adjusted year. increase million. we from higher was $XX.X to net EPS first operations an million to gain $XXX Net delivered with X in of million compared was prior income of the adjusted EPS and of EBITDA, continuing million prior million decreased a adjusted $XX.X the Adjusted increased diluted a $XX $XX.X the income was Third EPS Quarter on $XX.X operations continuing XX.X $X.XX diluted $X.XX, and of in from was from income

operations operating performance fresh be within the in the adjusted was in the the increase Third of expense last months despite decrease XXXX In EBITDA. by Quarter, to XXXX. And predominantly to the from challenging driven compared loss improve Quarter seen decreased partially vegetables The XX an the Third for offset underlying discontinued environment. business can this as increase continues ongoing tax well by interest as over the in income expense, higher

sold, underlying Slide updates North result Quarter. marginally delivered Fresh X.X% The worldwide and banana offset in increase food a fruit Turning pricing stronger due pricing higher the XX. volumes a of and which was EBITDA comparative as decreased worldwide decrease costs banana commercial to XXXX. operations Fruit million primarily The activity, pricing. an Quarter due by decrease lower offset strong The revenue, now by higher of Revenue lower in good and or decrease partially to cargo pricing Europe. Adjusted in by divisional pineapple our starting Third due well the as $X Third logistics continuing was banana to shipping to for in was division costs in and on lower X.X%. with by sourcing by fresh partially America, mainly in a decreased strong

Produce favorable Fresh impacted million foreign the impact was increases Ireland, by the translation. and increase currency EBITDA U.K., revenue positively in increased increasing performance This driven X.X%. Netherlands. segment. Spain Diversified EMEA. translation very and from foreign revenue strong and the currency Adjusted in across again division XX.X%, driven by basis, a increased to like-for-like a performed XX.X% a quarter Turning a On with the basis, strongly or like-for-like by and X.X% On $X by pricing the

and Diversified Rest Americas World Finally, Produce Fresh XX. Slide of on

primarily one-off As EBITDA comparative volumes segment this driven by Third Revenue in a well was other America to in North Chilean for in quarter. by by increases. There lower inflation year. $XXX,XXX X%, in as justified decreased continued loss a revenue impacted $X.X North offset strong lower prior partially million, was price commodities, which an marketed of in berries a the America chain increase expected, most year grape The as loss due Quarter. in prior Adjusted period outperformed products the those the disruption, business. was performance the from supply

Now turning generation, allocation leverage. to to XX our Slide and cash capital discuss

your split statements is and flow cash now that our to attention discontinued draw and I highlight our in Firstly, financial statement operations. GAAP between this operations continuing

a free non-GAAP of this of slide set also operations, the and our earnings from our cash press We release a presentation. continuing measure out have of in flow definition on appendix

the adjusted and million, months driven good of was XXXX, performance X of capital $XXX.X free across cash management from group. first the flow working For continuing strong operations by EBITDA

year, XXX continuing will cash For from the that capital we expectation flow our of current are at be operations million. neutral full targeting working is free and least

plantains investments projects in expenditures processing warehouses was Capital included expenditure million operations Quarter the and continuing from in facilities. and ongoing new in IT, and Third renovations in farm our logistics banana's $XX.X efficiency

For million. expect operations $XX the from CapEx be full now to we continuing year,

group. of At remain the combined And Quarter. sale million of held actively marketed further from end the within million, Rory property optimistic noncore to for Hawaii. Fourth sales our primarily in of of and September, in we assets continue land $XX proceeds of the was we assets we We sale $XX.X quarter, a received asset in value deliver and large the parts the mentioned, can of that dispose as the

$X.X has million expense past rising year-over-year million to the the approximately months. following $XX.X rates over XX increased Interest

to the which interest expense we retaining forecast are million, our full year, For discontinued of inclusive is allocated operations. $XX of

on shareholders, will on X, to to to to cash are paid for January record XXXX. commitment Quarter, XXXX, of Third shareholders $X.XX the XX, which on be a we our pleased dividend return Continuing December declare

and to pleased a quarter, leverage downward free to the leverage we trend XX the cash contributed the Finally, continuing end of the at last sales our our are X.Xx in over flow strong that in generation reduction asset months. the

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

Rory Byrne

of ahead the for the group Well, pleasing. X.X% very months this over the compared to of X% of $XX the of million Group adjusted X and of is months first group EBITDA This million billion, margin results $XXX revenues, X.X% adjusted first an with EBITDA Thanks, 'XX. translates $X.X been have X year ahead. X% Jacinta. is to

well strong million. EBITDA for least in they While environment challenges in complex and for base the with [ wider our arise. Overall, the targeting ] $XXX result our the an of teams we continues the remain and results of good at and weather the deliver unpredictable, to year, supply of are X adjusted remain impacts globe the across as we now deal experience quality first strength are us operating our diversified and confident macro full months a XXXX to position to

are well to for drive approach by our forward again the out to and ongoing disciplined plc their [ want ongoing confidence Fresh as the across a businesses, so focusing control and of remains same, business which Vegetable towards support, ongoing suppliers and and and capital. I growth year. we value cost Our provides in for collaboration across continuing categories Dole dedication their customers business, and projects of with us with accelerating the strategic as for the thanking our exiting our group as our including remainder and priorities these the the remainder all cap core commitment on look once creation efficiencies finish people ] to year areas operating the the

you for questions. to open and back line With can the that, the I'll hand we operator,

Operator

first Deutsche the Bank. from Your Instructions] Barnes [Operator question line of comes Chris of

Christopher Barnes

of you Panama called the first, guess, know Rory, Ecuador a fair I the through amount I bottlenecks wanted trade regarding I to supply press rains impacting also about been shipping banana just ask but Canal. out there's conditions, El Nino.

drought So amidst there. the

on seeing be and it a just would So the you're to update these hear expect to evolve the status great over conditions what coming how today ground months. on you

Rory Byrne

is to us mean the unusual banana potential huge us impact that Ecuador, we've I the seen rains you Yes. and we've most in are seeing there. highlighted obviously, have and areas producing sort of impacted country

are of you the restrictions the right, and Canal. on around use Panama, there You're Panama droughts the areas in seen have

hasn't to impact the of affect Peru over that impact and couple Panama So Chile unusual We for hasn't or business. cross in so or as volatility next far, material material rains can banana little had Canal. the a are even having even had the on grapes a and cherries either bit don't tend particular, well that of months.

we're that. So on eye a close keeping

will good X our far, sourcing countries the across months. geographies, is our with diverse on So our base keep evolves different the way But just it eyes something the through managing different adequately. so we're next that we it and as it over

Christopher Barnes

the can't close some and business your that the is step the transaction maybe Fresh you Vegetables helpful. That's on up pressure transaction. Got I you I your Fresh like prepared just to remarks. But what based this some It filing shaped follow in take might you the with in it. I looks around extent just revenue And quarter. on mean still offer mentioned could the the perspective appreciate Express? language then in alternatives to updated the under wanted back

incident talk could we maybe and excluding as potential business? EBITDA, drove EBITDA cyber how for maybe just alternatives So just softness like that about trending what contemplate year-to-date that the you is

Rory Byrne

make comments the of Johan, some our maybe business, could trading you aspects on please?

Johan Linden

Yes.

head. in a we we we're trading, commodity when business. better to of also our look Fresh -- better compared the in the XXXX. So side packet mainly the business, doing our Fresh whole year this But better driven performance by the in salads Pack, at performance It's have much

much doing do we're overall, even could So better, we but better.

not in with are We feel are direction. are our we well. customers but right the we moving pleased So the performance, we supplying

good the that also So market in to we recapture share position are have some believe lost. we a we of

Adam Samuelson

Okay. Great.

in guidance, guess, the Rory, Quarter. -- adjusted updated million thinking the year, XXX the just $XX two of So segments I EBITDA about about diversified the last did Fourth

about me help how businesses? X all thinking just last But the performance you're 'XX. think implied -- across about XQ the about, think businesses we how So [indiscernible] to X relative year's should

Rory Byrne

caught just me, Maybe and I not Quarter. around but the I but perfected think Adam, the the is ] for Fourth was full but clarity year some [ Yes. the just some question, on the line guidance it focus

very, XXX true we not we're year. that suppose science. the last It to with of doing what an very message Quarter the for question is finish strong the full I So And really X exact say year. getting strong guidance we're greater is to expected had a than is a good

fine So our summary trading is on position And at really of is the that the guidance. moment.

Adam Samuelson

a what then about we Okay. think be that into talked North environment America. XXXX? of fresh in kind seems to How more dynamic in about competition as And should bananas we relative to foods tightening marketplace on supply you move

Rory Byrne

last year. an be the over ever, operate as guess, dynamic. competitive think Yes, we it will I world interesting in I a And

has more supply and backdrop of than normally a So And dynamics, amount bit usual. the seemed do that of it little price. to those shorter competitive expect and there is we goes felt fruit a

we've we'll and challenges experienced forward future. continue successful have So see. do them we 'XX these an to of kind been dealing forever course and of again, going into But will hopefully with the over in way the a team,

Operator

Gary of Martin of from Instructions] line Your the question next comes [Operator Davy.

Gary Martin

off. of a Just to congrats good on results, start set just things

from X questions just So my side.

been say, going terms Colombian just Colón general of asset gone peso. an the just kind procurement just key Is just what softening seeing of sales? I impact you of, Is as a give Just costs. Costa you're actually higher prepared Rican first, of have Quarter I'm you're good input seeing could of costs just in the appreciate I there? And input sent currency-based sales the update kind asset of of have inflation it just us appreciate up. kind of that and the you there or of But we'll gave into that to pipeline Quarter. in higher then Fourth expect on just backdrop, you But I that secondly, remarks. in on think mean cost you've there's a the if Fourth bit what to -- color the some

Rory Byrne

you the Jacinta, on Maybe and Johan, those could one, the of first take comment just, perhaps. you second

Johan Linden

Okay.

has look pressure the at Colón a Costa Rican if cost currencies. coming the to over but strong. been you So out, you're they're very we're that it's all coming having, bit from from The the little place, right point

So impacting that is cost.

it for when increases field. also We growers we're salary have it on to that see having. independent having growers comes the pressures comes them when to pressures They the the

see higher that that, coming see can you and price the we official pricing, that out So in is up. coming asking them for Ecuador, of

So to we're for going to more some pay the fruit. have

we other hand, to see moderating. shipping. be some We the paper believe costs see on other there But input something We moderating. done in is

cost So to pressure, in believe but good in good a are a that we them. -- see pressure handle position we we

Rory Byrne

the on aspect. surplus Jacinta Then

Jacinta Devine

Yes.

So of just in year-to-date, recap, we delivered And so we've to million. sales $XX achieved million. quarter, the $XX

difficult QX, like, a sales Obviously, ongoing sales anything have our $XX timing we was it's which And we and to But through ] to pipeline, the sheet. timing So year. very of that end predict. going [ at very for Fourth of we're before some you hope but QX the really asset and million, sits wouldn't working sales predict Quarter, if the the balance closed. again, on but for strong, difficult into small was expect is I level incremental

Operator

this further I now over remarks. for no Rory call the are to at closing questions will turn There time. some

Rory Byrne

obviously, Quarter good of represents our quarterly another in And very today. numbers. The you quarter Third all pleased sequence performances. joining strong year-to-date our Quarter consistent Okay. a now and us we're Thank Third for with

plenty out of opportunities, but we look optimism. of and forward there, challenges do enthusiasm, the future to at great However, plenty confidence

all So for very thank much you us today. joining

Operator

conference call. This concludes today's

You may now disconnect.

Dole (DOLE) 16 Nov 232023 Q3 Earnings call transcript