Dublin-headquartered Dole saw its net profit shrink by more than a third in 2022 when compared with the year before as its fresh vegetables divisions endured a challenging period, the group’s annual results show.
Total Produce, originally a spin-off of Irish fruit company Fyffes, completed the acquisition of Dole Foods in July 2021, creating Dole, which is now the largest supplier of fresh fruit and vegetables in the world.
The group’s annual results, published on Monday, show it generated a net income of $111.7 million (€104.7 million) last year, which was down from $177.6 million the year before. The company’s revenue decreased by 0.6 per cent, or $56.8 million, to $9.2 billion.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased 14.2 per cent, or $55.9 million, primarily due to losses incurred by the fresh vegetables segment following a “challenging year”. Net debt as of December 31st was $1 billion.
The board of directors declared a cash dividend for the fourth quarter of $0.08 per share, payable on April 21st.
Dole also said it recently experienced a cybersecurity incident, identified as ransomware, within its business.
“We moved quickly to contain the threat and have been working closely with leading cybersecurity experts to remediate the issue and secure our systems,” it said. “We have also been co-operating with law enforcement.
“The incident had a limited overall impact on our operations. However, it was disruptive for our Chilean and fresh vegetables businesses in particular.”
In terms of outlook, the company said it is continuing to see improvements in global supply chains and signs of moderating inflation, which it noted “can have a positive impact on our business”.
“However, we have also witnessed further weather events, such as colder weather in Spain and Northern Africa, which have created challenges for importers in Northern Europe at the start of the year,” it said.
Overall, for full year 2023, Dole said it was “well positioned for growth”. It is targeting full year adjusted EBITDA of $350 million, a figure which assumes no contribution from its fresh vegetables division.
Dole executive chairman Carl McCann said the company was “pleased” to have a “strong final quarter”.
“We delivered adjusted EBITDA growth of 21.7 per cent for the fourth quarter and our full year revenue and adjusted EBITDA were in line with guidance,” he said.
“Post year end, we announced the sale of our fresh vegetables business. This sale will strengthen the financial position of the group and increase our focus on our core activities.
“With our diversified product offering and wide geographic footprint, we believe our business is well positioned for growth.”
