DOLE - Earnings call transcript Q4 2024

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Operator

Welcome to the Dole plc Fourth Quarter and Full Year 2024 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 Regan

Thank you, John. Welcome, everybody, and thank you for taking the time to join our latest earnings call.

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

this Relations release and slides related materials to and During on along the other be the Dole available our website. Investor these, earnings supplement of remarks, presentation our with are we'll call, section to referring plc

update at of forth statements. may law. will to may be revise our our certain forward-looking disclaims in circumstances provisions remarks These factors, a results the harbor that safe differ implied today or or expressly of include due to time made, the SEC filings. or note, outcomes any forward-looking are securities expressed Please wide within those federal set company they and the materially those reflect from range statements the obligation Actual including any

reconciliation our GAAP found which Information also measures may regarding be a the of financial the press release, non-GAAP to in most use includes measures. comparable

With pleased Rory. call today's that, over to I'm to turn

Rory Byrne

James. And welcome, we for as today for XXXX. you, our year thank and results full us fourth discuss joining the you quarter everybody, and Thank

of XXXX recap produce great plc So Slide to X XXXX. and fresh in business growing year progress the with the the another key turning provider developments as in a Well, leading and development firstly Dole world. was of of for position its

organically year, categories. exceeding to group capital. financial a number We investments. our areas EBITDA $XX flexible and growth strategic also we a priority last allocation to growth most From a and do and basis, We've over core high invested like-for-like Throughout driven by a take million but our solid delivered capital with our revenue increasing performance, on across adjusted disciplined approach years. continue our managing a continuing place trend business EBITDA our of year adjusted we strong a by on grown and financial recent and guidance some perspective, this the the

realize return for quarter, XX% In investment an which the excellent repay the of with net took capitalize first to Produce to the in entirely our proceeds used cash decision to million, on $XXX Progressive of opportunity we we debt. equity share an on disposal

we us for the in Coast net our driving to approach, addition additional debt with of in 'XX, deal over This quarter, X our third service East and shipping to agreed vessels expand cash million. significant growth. a provide Then in strong the generation deliver our to pathway a operation combined $XXX performance reduction of our allowed operating with a fleet

as Diversified the performance looking the XXXX in in in Fresh group a Food year Fresh million. was a increased which in our adjusted more full EBITDA very basis, segment driven for on Americas performing Produce On full Slide Now as at small closely to to $X.X strong revenue decline offsetting segment, Fresh billion for by had growth This and X.X% year increased Diversified well X.X% our by like-for-like Produce strongest $XXX figures been a XXXX. X. EMEA, very

adjusted and million EPS X.X%. share an of $XXX.X and diluted increase was income net $X.XX basis, adjusted was an On per

financial Finally, $XXX in and million following cash beyond. generation, another year we leverage of with X.Xx, very ended putting of net debt net a XXXX robust strong and of for us 'XX position

own ahead result segment. million. year in was to and to with operational EBITDA adjusted and $XXX.X $XX.X that million the strong Fresh a 'XX highlights the now delivering expectations. Fruit our million starting fourth to quarter year, for our with of close increase had of This $X.X X full an Slide Fruit to compared Turning a the was Fresh a finish of

supported by very our business delivered a from positive the and in and fourth shipping increase plantains, bananas in in In particular the quarter, in obviously our continuing investments. good North America, our growth year-long capacity volume recent trend

driven the in we year, in an concluded market, by excellent momentum the continued volumes European costs. positive bananas high our lower as shipping and by Additionally, well as

in shipping to we the also the the vessels costs ports, XXXX, faced were the U.S. While America dockings cargo of with Latin due as some continuing higher as the we logistical performed into planned X space. and in in in of pressure well both U.S. issues well commercial at marketplace our dry and price

an relative the Fruit has on sourcing supply end to Fruit remained put good continued side, upward of tropical This throughout balance the operations by in which and the having our financial affected on while costs. anticipate in of the impact was for a do within the our us of the On part storm which relatively short-term acreage at a tightness supply-demand Sara, XXXX, impact pressure important XXXX. first year of we Honduran accentuated operations notable

in as competition of the very the As foreign come, face year fundamentals to shape, supply out be underlying we excellent active look division movements. sourcing well issues, 'XX, chain the and we will into while exchange continue headwinds in some as to

As capitalize always, these opportunities with management further are challenges our on of on keenly dealing focused growth while they arise. as knowledgeable very experienced also team all and working to

performance, line the So robust year, consolidating moving $XXX.X in expectations XXXX. on This of the achieved with to growth Diversified X.X%. stable EMEA 'XX was good in growth segment excellent for final our quarter, a and of delivering segment. full million like-for-like in revenue ultimately Diversified adjusted which delivered a had EMEA EBITDA the

level. to segment also events due some growth weather However, year, mitigated over the headwinds of course did some entity-specific the issues that the face and supply challenges, the at margin

positioned continued into XXXX, investments within this as the we integration coupled targeted ongoing well positively, of profitability revenue increase -- segment, a basis growth we believe we to will More on XXXX. are forward we going benefit and and with into anticipate again look we like-for-like

final Diversified basis. This growth our strong a segment. a consolidating Turning on delivered segment of stable Americas very year to a quarter, like-for-like

segment XXXX, impact a delivered of a full performance. of $XX.X disposal the fantastic Produce EBITDA in year, adjusted this in quarter Excluding million the the increase for the Progressive first

segment the XXXX, season timing Chilean particular benefits within summer export the and Early cherry had in Hemisphere seasonal important the Southern in business.

particular, outperformed well of important in consistently across to businesses and progressed, some of our American continued continue especially year categories the such the deliver product range in very North business, as export segment growth, avocados. strong as wide a growth our perform as this to as However,

the Looking the Diversified point ahead, season. high turn as Southern in export the Hemisphere summer ever, the Americas year of coincides in the with in segment activity

the And may Chilean so good at while levels our the in the recent season, position that seasons to strong remains in in expectations. this not profitability far, a seen clear on cherries it's business deliver also persist same very

year, base businesses, we export and our to into further years revenue American further we in the consolidate XXXX can had out strong North further look we both and we come. the growth our for growth for build in believe As the

So turning Fresh business. to the Vegetables

continuing As we that strategic delivering business, we have recent our the remains work process and for earnings alternative noted are best ongoing. to on on calls, our most vegetables

On the operational 'XX fourth side, consistently the in in we've improved seen continued quarter. results the

to recorded XXXX, improved our XXXX, basis. on to operations underlying successful are in Overall, deliver basis, the an an to of that been as head at all continue in discontinued into an divisional a cash we the adjustment and a business for pleased turnaround positive accounting While best carrying business our teams corporate ultimately our year full flow year-end, encouraging concluded approach delivering in year value for we with vegetable we on have this foundation outcome allow long-term reestablishing and doing patient management stakeholders. us so, an

full financial and for year. I give to the fourth hand you quarter the that, With review over to Jacinta

Jacinta Devine

Rory, you, Thank and day, good everyone.

X.X%, turning and was impact this Slide with Progressive the strong to sale Group FX increased all the operational growth a of X. the excluding basis, on of revenue our like-for-like Produce, by driven Firstly, the quarter group performance segments. across of increase XX.X%. On results Fourth

the X.X% X.X%. on increased year, revenue For increased in quarter. revenue EBITDA basis, X.X% like-for-like full the decreased Adjusted reported a and

or basis, million. like-for-like on Fruit of growth the Fresh However, was a driver fourth quarter. in $X.X X.X% the increased

an This and year, ahead result of initial adjusted $XXX.X X.X% on guidance full of revised our to was of on increase deliver a of X.X% during million the For very are XXXX. increase basis. like-for-like issued we EBITDA, pleased an and XXXX

the operations million of write-down a tax. at noncash by of fourth the operating Fresh Vegetables of offset results income, value quarter million loss a decrease of was discontinued improved carrying $XX.X the Looking significantly the in net division net $XX.X in with due to of

this Fresh and Vegetables division reason we guidance, under is and the accounted from amortization depreciation Up $XX.X of million was of amortization the to As primary and depreciation XXXX. noncash cessation held-for-sale accounting XXXX, write-down. cease the impact the for for required the XX, to December XX, was March were

carrying group, expense. lower decrease to value than strong tax adjusted was as X% offset of by basis, to the EPS and million expense, diluted higher $XXX.X predominantly a income were basis, $X.XX well These was write-down On higher the in share. of income On lower $XX.X partially noncash higher operating across an the interest year due and The increase year. tax other a Vegetables increased performance adjusted full and offset to adjusted prior expense. Fresh net fourth income decreases interest expense. due was the underlying income was as EBITDA adjusted quarter primarily The division $XX.X million of partially lower and lower million by depreciation higher per to net due

to adjusted expense. $X.XX the net higher compared X.X% income pleased to increase Adjusted as in adjusted are we tax by a EPS was for EBITDA offset interest year, due XXXX to partially full $XXX.X depreciation expense, the XXXX. For and primarily in well as to in diluted lower $X.XX million, report increase

higher of pineapples division with round good higher and lower to for in increase Fruit quarter X.X% North of sold, worldwide for America. by adjusted worldwide were fourth increases volumes worldwide volume the and sold, EBITDA now another offset pricing XX. pricing Turning Europe. bananas with increasing plantains the strong partially worldwide of revenue The bananas for result fourth was volume XX.X%. on and Slide pricing our updates in and lower quarter Fruit starting Fresh These The the lower pricing a pineapples divisional in out continuing due plantains higher year of to for to volumes operations, and in increasing delivered revenue Fresh

docking. adjusted lower by dry shipping costs EBITDA The in and due by as fruit as to increase North in in driven partially higher sourcing primarily America costs well bananas revenue higher shipping Europe, was offset

full increased X.X%. year, increased adjusted the revenue X% and EBITDA For

Now turning Spain Adjusted and Spain partially performance Nordics, revenue as in a million. from Slide impact U.K., unfavorable by in the On offset Czech segment a million, and by foreign to Africa $X.X currency M&A Ireland EMEA and like-for-like strong delivered revenue net to an basis, impact of growth fourth of primarily due XX. from quarter, in offset a driven well activity the partially on the X.X% X.X%, the This decreases South EBITDA a increased translation Republic, in $X.X the X.X%. U.K. stronger decreased by as negative performance

in X.X% basis, like-for-like basis. with EBITDA segment EMEA the a revenue X.X%. EBITDA a adjusted solid a and increasing adjusted performance X.X% XXXX like-for-like increased On on like-for-like from increasing Overall,

finally, turning Now Diversified Rest of to and Produce World. Americas Fresh

the of due On in the grapes in previous primarily American volumes in quarters, Progressive EBITDA categories divestiture. and XX.X% be as decreased explained year, basis, to like-for-like well the higher cherries increased adjusted to decrease of revenue Again, as by this can the market. strong most performance across in revenue As export trading in a North Produce Produce reported QX. disposal due Progressive

business, in The profitability or or segment XX.X% like-for-like in $XXX.X million $X.X in million, me, on $XX.X primarily a X.X% with decreased avocados. offset the delivered kiwi, $X a or basis million -- good very EBITDA grapes and cherry lower to EBITDA due basis, result increasing excuse revenue by full Chilean continued strong performance North adjusted increasing and like-for-like adjusted year a partially XX% million. particularly America, a On

decrease capital our a our leverage. finish quarter managing Slide by Now We and that our pleased reduction to leverage $XX driven year at turning on ever allocation focused leverage net reduced in are compared million debt QX. further to to allocation the XX capital discuss The the was remain in and to and X.XXx.

in prior the stable proceeds, $XX.X was levels full year the to assuming million million approximately as for $XX has remain and rates exceptional expect expense and any to an for as cash quarter and Under lower be assumption year $XX.X base not XXXX continued debt the lower base interest to fourth due million. decrease to broadly Interest year. that in rates compared will we full well XXXX

continuing operations in from Net cash provided operating by activities $XXX.X XXXX. million was

for from As positive the $X.X $XX.X by in quarter, the some anticipated, continuing year-end. finance we capital in this working way timing a was million operations lease. was quarter, of capital benefits of added continue expenditure inflow fourth to see Cash further accentuated and and at a the seasonal assets million by we

the $XXX.X XXXX. up which last of latest with of and by $XX.X was shipping $XX.X expenditure of million year, finance earnings guidance. was mentioned lease, million, cash added in For vessels line million, X and which total capital in we further additions the a purchased call capital assets were made outright our of early full This we our way on including

XXXX. flow continuing for our quarter, X, will to the the year. to pleased shareholders, adjusted to benefited full cash group from on $XXX.X year. commitment return of XX, management paid for to April XXXX, declare the cash on capital working on fourth Free are with $X.XX strong Free cash dividend the million we Continuing and shareholders March a operations from record which be EBITDA was the over performance good across course of flow

hand I'll will Rory, full outlook. who year to our an you give back on Now update

Rory Byrne

Jacinta. Thanks,

So million XXXX exceptional group's the performance that our strong in from $XXX EBITDA us year. operations, believe our gives expectations to platform financial that momentum of delivering in a own exceeded a pleased a very result we result continue with adjusted continuing XXXX, the we're and

will we more uncertainties As focused our and year. for look excellent we see at challenges continue take XXXX, opportunities to face while this some we business, a also

adding and supply of multinational other trade regulation, environment course, rates increased any or and geopolitical For chains. is to businesses, of tariffs potential and impact in including changes evolving most costs areas, the foreign structures quickly international sourcing the uncertainty exchange

and teams management preparing while as the on promote critical our continuing possible, benefits as focused produce shared this enhancing fresh global goals of for keenly health to regard, the wellness. eventualities supporting are many In and also industry towards

November. will For Sara our a Storm own headwind in on known short-term Honduran XXXX operations our face of we in impact Tropical following operations, the

to finish this did the to year, goal that million With year expectations our XXXX our our $XXX of excellent exceed which range given in to the stage is year, million. mind, financial of full financial adjusted in EBITDA XXXX early at the $XXX deliver

are we we investments side, some XXXX. investment strategic were important the pleased to to Turning that make able in

approximately expect a continuing with CapEx we line of depreciation have operations million. XXXX, $XXX maintenance broadly to as baseline from in level a of For our expense

we drive will years explore addition, continue In further growth continue executed, of in the our range development opportunities, come. which, and to to to strengthen a if business

enhance year pleased financial In conclusion, we're track strong our another very to results. to continue record of with

dedication right We well customers have and you as And to all with operator, questions. the open ongoing across you forward people drive an excellent for huge Dole their and our group thank group support. their the I'll the as everyone back a of that, and important to to can ongoing hand commitment to suppliers line we plc and for for

Operator

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

Christopher Barnes

the known the conservatism you and but added context calling attributed the difficult versus in could decline climate? headwinds comparisons versus X% First, EBITDA that unpack how much like of You're 'XX is the midpoint, just to just decline from of macro impact at geopolitical guidance? just the for a Sara wondering

share just would first particularly cadence any And by you color segment half be half helpful. can versus and second

Rory Byrne

Thanks, big Chris. I of it's And of year couple Yes. full all, be things. very obviously, giving to early guidance. a in mean, the it's year first

can the around difficult or anything I haven't a think arise. we issues world predict. And economic to that's potential specific while we're built geopolitical macro increasingly in in secondly, major that

generally. they and think bit I of do little the uncertainty around negativity a create world

at the you for really, in and the year strong strong, record 'XX the was $XXX with a simply end sold storms the shown Chris, in really, number year. on a I back the come operations IPO really that really very us, and or are that the out subtracted continuing come we to 'XX ability few think as a good know, took thrown for 'XX to track year result piece 'XX, down had a XXXX, record million positive with look a and Progressive in if at right years, really we of we weather Produce we've of $XXX million to have result. last whatever us the pretty you basis off now over in post a In business we

sometimes I to good might a from. But year. the sets little grow an over had it that would we benchmark we've opportunities and have there, look we perspective, that like from than expected. analyst a is bit know at the people better We a take way are that it was

have we we headwinds fruit to causes containers. in from have schedules dislocation it Honduras, the specific just in how the it Honduras around We in do alternative some complexity our -- shortfall particular. creates dislocations shipping source that referred in and It's

little short a just term it's at losing bit more complex So fruit. than the

the down a China unhelpful. -- Coast some containers will as we've ship had that's with to as it's of bit between believe be that, fruit well on its got breakdown ship on insurance We covered. that the although West had little well, Maersk we cherries We a on proceeds XX broke way that

not different faced we So not certainly, short-term they're our fundamental business, they're and way through structural, over there way through have are any our greater than past, them. we them. to I some to work headwinds, don't but we've the work or our think

when radically been might guess rates election. a and you exchange of exchange wasn't even in as of some know, some quite based that from price And complicated. happened us The those the as has well taking what strengthened negotiations post and be timing for dollar Foreign specific dollar, perfect on of also contract further terms negotiations. the of the strengthened the

full million $XX really and performance. The number the world I've of year is the come business the to in highlighted, division, the ahead result and as Americas rest exceptionally the an with of year 'XX Progressive of of good dispose

we're that, good expect went with will pleased for us. everything with we particularly division, ups more but products it right grapes. normal And outcome a cherries that in will be although more and on be year just a downs, like particularly the very 'XX that it's So year, and do normal normal

asked I different unfold. be as think you bit will a it how will the phasing for

of most quarter impact think particular, face the headwinds I quarters that certainly in we X. will early the

So of slower year, the over see and over start XXXX. of complete more phasing course balanced you'll the year to of a a the the the full I year think

that. question that's got think guidance, I you've any So overall Christopher, our year on unless follow-up

Christopher Barnes

is helpful. you the it's guys that's you I follow-up necessarily help evaluating, I place? any strategies like Like about no, into putting my No, but favorable. go think contingencies any I have guess just us there some movement -- were could know the shifting And around mentioned renegotiations maybe you to target, a post just mitigation know the -- tariffs. not back of is are ability the contract you dollar with do election guys -- and

to back like But like at to do trying I'm you or take ability levers the in look get if go contracts disposal... have through you your pricing? additional those that alternative you guys sourcing, think just tariffs Do have you productivity? could have place, to at

Rory Byrne

Yes.

we macro I the can't can't into particular or what the healthy produce produce U.S. time. it's food, that North speaking, at veg American market, supply and think the that terms, in products generally and fruit themselves

the doesn't need bananas have. a example, So and pineapples, you look they at U.S. climate, tropical for which

be think we quantities and will to that that everybody by want and So consumed continue bananas the outcome. believe I be Americans, in to pineapples will appropriate

other export our of sources. are complementary U.S. sources Some to

market. have it want around around people gaps grapes not all will year year whatever that peppers, in to or tomatoes, be, again, red all green and we peppers, the might have So think

can on will to on have into ultimately, don't day-to-day like that products the we and American somehow come there and Fruit positive any Fresh exceptions we impact and Veg be don't particular economy. tariffs So the hope that products think it that play basic

people We managed variables, things way our have some Trump think it can to and to. ultimately, are continue to many to it we through control perfectly can previous there we to it's we price, and predict. to and But products, kind consume get so regime, material will through go go lived so any But price. that of it the of a well. and to has tariff impact difficult We Donald want

let's So see.

Operator

comes the with Your from next question of Davy. line Gary Martin

Gary Martin

strong a of results. on Congrats set

related. from few of me Just kind a

go-forward progress allocation flexibility kind the M&A year. deleveraging? Just capital some there maybe Or to starting to I kind basis? continue for, of some of with regards made you is mean Is viewpoint really solid of during degree targeted on and to on focus we'll deleveraging a the your say, there. idea on

Rory Byrne

capital around answered capital answer Yes. to we on Thanks, we'd I obviously, any very potential of all and we is make that. different the first -- or steps question that There's big unusual allocation. examine in mean, a the up strategic our of Gary. high to alternatives get before couple agenda, relation whole allocation major like questions

can And the what the obviously, focus, our terms at of the different direction. outcome to division of in veg list our ability a the is the potential in of change that capital top our disposal reallocate of perception,

to get table we'd off So like that the quickly.

would well. are do have also to that that one the we with as future We flexibility gives of long-term opportunities the normal that, want have with the our follow process to facilities, approach to that financial to platform of the we in appropriate that. deal renewing us kind ensure We

department. have corporate finance Acquisitions, own our internal we

There look to a out -- is there. between in to at be no private are continue the there of the that opportunities though value. is differential terms there markets We expectation that continues doubt

to buyers. We interfund trying be continue lot place bonds a in so cycles PEs and exit. between seeing, are to some There taking cases, less trade the trading of of and

add and the have whether our of some keep to constantly some then very again we a perspective, eyes that's in that in at something interesting it JVs dividend look achieving review, do in Ecuador. under and our of is the to shareholders. and plantain a our very some value agenda will there development import looking on production that add we and we're Guatemala that of lot opportunities The but space, our we at that to from projects and on prices So always on much depends it's our actually are that, in projects, context. And interestingly have 'XX expanding positive a business internal

El at Chilean well. at Our some we're and that products, expansion Parque in supporting JV, interesting is certain looking looking as

business, at and footprint our a a might further grapes building footprint, interesting footprint, significant our significant that expanding some and up mangoes and our Irish business involve slowly Spanish those there food been plantains expanding limes we've at strengthening our core capability export in or been open developing existing looking other opportunities with of in is mind business slowly its looking Our avocados across position building our in reasonably fresh Europe. businesses Scandinavia Peru be our service in investment, smaller and logistics food some and or directly we've some investments our business, and and may berries, then up to

previous go back we on the And plenty internal review. potential programs, give decisions. projects. take in a to of investments level and issues, in total our do buyback think of will against something buyback benchmark the that on ultimately So of we keep periodically those buyback. an mind. -- of keep that the we context And undertake projects appropriate we and life have will the we that we us right return We open those We the did is

Gary Martin

mean maybe as second. just of just beat going across focus you deemed be a a second company-specific issues. some believe I little the just question, answer. you a I get diversified Netherlands, too. follow-on. thorough of of Excellent whether across I persist. But I further mean EMEA for of bit on internal very, you just it to mean, expect called some with weakness But of very Mainland I ask the to on was to Europe as profit projects think And was would effectively. degree some as your I it And out just to color kind a prepared good part remarks, this me

Rory Byrne

Yes.

businesses, different you Italy, Czech writing think at U.K. EMEA Ireland, wholesale from businesses, and division retail Netherlands, the I Scandinavia, Republic, businesses, covers there's Germany, food Spain it service businesses. look our to

within So ups we of and activities, have do a those you downs some get range businesses. and

interesting doing well. We like is We're working developing the we're integration the have in between bit a more some process and looking Produce legacy for countries at opportunities. Dole the example, very Legacy Total little France,

to combining management well The teams build are the strengths. on very combined

So don't we've anything nothing to opportunity and I there, than we've challenge. great downs think concern of there's more there's got us a and any and called there them few ups strategically, probably out. But that

Gary Martin

That's really, really And Americas one of Rest then just just on helpful. maybe question World. and final Diversified

further strong pricing has And to You up is elasticity there's bit. avocado grapes called it risk the as kiwis, in as tariffs mind there a of maybe degree peers, out higher-value listening well, seems performance, and though particularly quite gone just avocados. maybe across if across fair And pricing any with some of actually those product categories?

Rory Byrne

a I on the don't say huge market. have impact and mean tariffs going into North that to avocados supplier But yes, American the products U.S. that is is Mexico think no of can negative obviously, on going focus some be you I that's production. really American

the have -- subtropical U.S. U.S., meaningful capability minimum is subtropical production limited again, which avocado don't So in you it climate, of needs a very capability. production the

acceptable that will time So find I think an as balance over well.

Operator

questions further closing at this time, for would the to call no turn are I back there remarks. like As Rory to over Byrne

Rory Byrne

us. Well, strong back post was middle it look year a adds for XXXX. now IPO the really It strong at to Thank Yes. of very, in a you. record record XXXX, we very

consistently and strengthened business. where full in 'XX, So the 'XX, we've 'XX, years X financial grown

opportunities many the world, complications plenty see of the a downs for very there out of lots we've the and challenges ups cases, over years management challenges in future. experienced and team got Sure, there's in and but through of who've us many for lived

all and have move aspects our we of financially, business, We way. forward a well in focus good think operationally, we're a positioned to on good strategically,

everybody, for us much, today. very joining you thank So

Operator

for This participating. concludes call. Thank today's conference you

disconnect. now may You

Dole (DOLE) 26 Feb 252024 Q4 Earnings call transcript