Dole (DOLE) 14 Aug 242024 Q2 Earnings call transcript

Welcome to the Dole PLC Second Quarter 2024 Earnings Conference Call and Webcast. Today's conference is being broadcast live over the internet and is also being recorded for playback purposes. Currently, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.

For opening remarks and introductions, I would like to turn the call over to Head of Investor Relations, James Regan. ahead. go please James,

Welcome, join thank earnings our and Christa. the conference for time webcast. to second everybody, you, you and taking call Thank quarter XXXX

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

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

welcome, everybody. and Thank James, you,

the for joining quarter you all as discuss results So today second thank we our of XXXX. us for

Slide to the QX. turning highlights X financial and firstly for So

Adjusted continued in in the The disposal when continuing basis increased momentum. a both operations Produce driven our by by by adjusted to was Group on like-for-like quarter the year performances on and our growth basis, increased Americas X.X%. positive strong on business, X.X% EBITDA was is in increased and Diversified our quarter first impact line segments second stable XXXX foods X.X%. last and of diversified million like-for-like supported for performance the strong a a by Fresh revenue produce in good by produced of our with While segment. basis, reported $XXX.X fresh EBITDA excluded, from EMEA and progressive revenue was like-for-like continuing another

Our diluted also quarter, absolute year. prior an increase million net delivered business basis, fresh $XX the finish to in EPS compared adjusted fees per $X.XX the strong to $XX.X contributing was share. was a and net income adjusted million in million, income to $XX.X On

us. are the continue X.Xx leverage cash resulting reduce ever, and capital for very management prior that, lower quarter interest with a QX to focus compared charge to and in As see pleased we of the strong end the falling And allocation a our at year. to to be in to continue

and segment. Slide starting highlights our to now operational our for Foods Fresh X Turning with

segment delivered strong ahead Our year. in $XX.X a prior of largest the quarter million, X.X% performance of second very EBITDA with adjusted the

necessary in seen seasonal lower In higher of North well costs. this our but solid in the overall banana Most cost the also with in and anticipated Looking in the revenues pricing complete the as work. lower we to costs a America, quarter with momentum with and and positive part year vessels. we in sales increase per of our a be for allow at market, performance bananas and sourcing better volumes scheduling of to shipping number opportunity half by the by the XXXX, by driven as offset continued due docking second higher schedule of to European dry volumes additional a activity an will volumes second continued shipping higher

Despite currencies remains both strength some in the of markets, well we a industry-wide key The European believe of we banana recent the remainder the ahead supply basis. appreciation Looking dollar Cologne, year of placed. in against North the week on are cluster on challenge. and side to the particular, a sourcing for the American the an tight remains

However, been implementing to our Overall, enabling customers year control continue to supply strong anticipate have division team, serve another Fresh performance competitively. to for proactively basis. our a and financial continue base, cost we experienced initiatives diversified with our Food us base to the full we on

out and another an its consolidating in Our the excellent quarter diversified growth after first the remained to supply good QX, be come sourced particularly EMEA of shortages segment pulps South regions from with by quarter. for Africa. volume South level, for driven higher several an by good year the -- start the Nordics, positive volumes On EBITDA pricing, in to positive with delivered Spain,  performance all performance were America. continue typically adjusted strong to and quarter Revenue impacted while stable continue contributions a the

opportunities, results financial confident but another year, Looking deliver integration we remain will market the leverage we out strong satisfactory to we're full for year. of that positions, operational rest the continuing investment our and the to

volume Diversified progressive The performance of a several by disposal. saw Americas extending the positive had and grade for benefit variations, the volumes, better strong another of quarter on overall the margins. project taking QX which impact in delivered to a particular was leading Our export than products result additionally very strong out in good underlying basis segment some standpoint, marketplace but into prior we and several had again season years. seasonal QX in a like-for-like further driven From higher

business. our the factors, and the seasonal strong South well. increases North has products to the winter positive transition was basis a (unintelligible) timing quarter Excluding with pricing some season of American export most started volume also on and side, small In consistent the American across of

expecting year the after results we consolidate again price deliver have timing basis. year, fourth an excellent an of drop , seasonal the a a quarter. Looking at to half may performance on impact the and are -- our year year-to-date full second of important strong Conscious like-for-like full in

agreement as the And Vegetables with exploring strategic on Express, our actively noted alternatives of Fresh since been and we call, have sale the business. of to this business. So the last Fresh turning termination

on to in maintaining been are a hard the continue see interest pleased seek keen our possible Operationally, running very outcome to I've XXXX. stakeholders. work paying we in team the so off our committed focus the far and We of of the day-to-day business, best management the of

the standout performer favorable in been While from which the has fresh pack vegetable business, 'XX. segment conditions benefited in our market

give of with I'll also generated hand positive quarter. also has business have progress group basis. second value cash will you both underlying the And first contribute to financial flow over for review to 'XX The in businesses to Our that, made income on an important operating quarters half. in the combined the the Jacinta

good Thank and everyone. day, you, Rory,

Firstly, the Slide X. results turning group to on

increased line We the EUR are and FX like-for-like in and Reported prior adjusted X.X% increased a a the quarter fresh of revenue EBITDA excluding million and progressive on the X.X% pleased impact the by this and Fresh year business, like-for-like by The to have or second increase X.X%, delivered -- like-for-like driven in another operations. and year. XXXX. was the Produce which driven fruit of strong mix. in income financial $XX increase year-on-year segment. revenue basis, performance with sale on captured basis. in The XX Diversified of the produce, increase was the quarter The Net in across from increase an discontinued due to group, trading is QX performance jurisdictional debt changes strong fresh was of is lower $XX.X income including levels. within million profit due vegetables the and decreased million tax was expense our to Americas second Interest

net EUR Diluted the and million income EUR mix. of $X.XX in million XXXX. to second XX EPS The On million for predominantly first $XX first adjusted was adjusted half increased diluted first million tax X.X X% first operations by $X.XX, an net decreased from to from a earnings discontinued cash XXXX. in mainly the of X of expense, higher months, the loss converted XXXX. basis, driven of operations compared to to to the outflow the to For $XX.X XX X EPS quarter $X.XX income months the and year-on-year half discontinued of income decrease from jurisdictional of an respectively. excluding income discontinued in EUR operations, was million This due adjusted compared

$X.X Europe million EBITDA in sourcing lower increase North continuing the was revenue primarily strong fruits result Fresh revenue and for pricing The X.X% fresh another shipping adjusted divisional volume consistent bananas pricing and offset the and Turning partially higher in our with higher starting by now and higher volumes delivered America, food and updates adjusted Slide due division increasing Fruit of sold, revenue in higher by of The to partially banana pineapples. increase for with XX. lower operations for costs, offset on costs. volumes higher The driven was and second worldwide EBITDA by to quarter plantains X.X%. up

continuing on strong from operating Fresh increased over segment, a Diversified Spain. in due XX, was consistent Ireland, so X.X%, another to strong Revenue Africa. Turning to produce second quarters. its good year, in driven EMEA the and and with last by EBITDA in line performance South the Slide result results primarily momentum prior quarter Adjusted Spain U.K. number of this

American America. underlying Adjusted revenue of Slide a well basis, performance sale, and growth continued primarily a basis, in of increased a XX.X% timing or impacted XX.X% Produce our EBITDA like-for-like like-for-like progressive due million sale by an produced primarily on improved increased March. to North Finally in result. Fresh Diversified in seasonal most seasonal basis, products the On North this This the South as due timing World in positive $XX Americas the in predominantly and of the a like-for-like impact commodities differences benefit on business. excluding Rest Revenue XX. strong of was segment benefits segment to America diversified on as

on discuss pleased activities quarter. in both as managing $XX.X remain turning EBITDA and to small by driven capital was in our and net Net from our to strong our are debt. Slide well provided leverage X.Xx. cash that decrease operating the reduced XX very a operations was focused Now The and leverage. reduction allocation further capital as million in quarter We by allocation our the our in continuing leverage quarter to the

the projects capital shipping a this our investments the due year, and of the have $XX.X we we second to included efficiency our in and in the in this working will at Cash was warehouses from usual, of higher business, continuing ongoing expenditure year. seasonal the in on other containers, typical quarter spend expect second As course capital and investment the million for time half assets. reverse peaks of over that operations

total full further we expect to drydocking and the additions expenditure our million of along scheduled in vehicle processing warehouse to our year the GBP of investments vessels, of million the with For of our in year, some the of range continue capital XXX XXX GBP in facilities. second assets, the efficiency the expansion will other projects some include half our of Nordic Chilean in capacity

Following to to debt the the prior $XXX in proceeds sale to to term of used levels we Progressive loans repay a the million year, This compared leading in produce April. March, lower of in decrease interest expense. our contributed

full million to to our $XX expect operations the second interest declare pleased in the continue quarter, shareholders, X, on $XX to we million. our be to which will September of of XXXX, on be year, the commitment of return For are discontinued to we for $X.XX XXXX. with dividend expense, record range to October inclusive cash Continuing a to on XX, shareholders paid

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

Jacinta. you, Thank

quarter, in another pleased the strong full complex. year. forecasting for us which second year So excellent to the start with in consolidate we're deliver to our the puts really very position strong By to remains obviously a result an good performance very

target customers EBITDA advancing to dedication of for are strategic finish of continue have excellent XXXX. ongoing well across We our drive the raising ongoing forward all added for to million earnings the want conclusion, the for $XXX adjusted full commitment quarter to our at stable, to year. track now focused target In thanking to by also as PLC our record Dole to enhanced on it. on to we on full-year our remainder our strong to are and year keenly group consistent and are delivering another pleased least suppliers, support our the I and people again our as all their once priorities for while

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

with the Adam Goldman [Operator question of Samuelson from comes Sachs. Instructions] Your first line

I just to question. first just the Rory, maybe So want

you full about year think the balance raised also second the X or the calibrate over kind where had half. if all, the how quarter Can at maybe the the kind you we the outlook ago? second you reflected X second half for how year, or in year the you just outperformance As us months of first have and strong of your from really much half half of of full of of increase for first were outlook year guidance, the -- a changed, expectations

Yes. Thanks, Adam.

forecasting is which diversified exact us sources, I I bases, customer we've range a clearly of science, activities, profiles, those So said, in balance of lot as and years. done customer with last good an number think things, to not cope give the of does across geographies over a our

I profile consequences last the first think that. half side first the number the no in particularly vary dry overperformed there's doubt year, and of food knock-on the bit of we on ships cost business, month year compared with of with half the certainly docking the the between earnings of and anticipated, that have a half we and have the fresh of little second of the just years, this

in a little duly those other particular, issues. fruit major had will division worried We the year. year the There below year's a divisions in between a the of Let on I'm are We'll the and look half other. second other the switches be EMEA last we're measure quarter QX year not, finish like about the full of really contributors, out bit numbers. particular some the of fresh strong X in all basis, at to the some the

of rright. lot things a Just went

of itself ourselves put overall, and remainder we're with So we year. this the everything the we target year. budget don't set into the (unintelligible) the comfortable necessarily But mix, for repeating we

seem with here emphasis on prospectively, share just there you to about further of has showing think growth deleveraging doesn't vegetable would us disc there it and need just in divestiture kind incrementally ops like progresses. versus here, an deploy business good from the you're to much organic and proceeds Can cash sale to debt where hear I'd guess evaluate would that and hopefully, reduction or towards And gotten as. earnings leverage reassessing from be fresh how the the just to a kind it incremental love as need and of I repurchase what help of cash how some is process

actually are at happen seen well. we're very business. existing are know, a the dynamic It's, value we've the that, our markets and There the time. Yes. attributable the opportunities And of on do We level that's some speculation question that. -- our A think obviously, of we to of to of of out rating available couple then than situation debt that world, progress a veg lot in weeks. business We And a little you been it opportunities mean... gap the group. point got pointed that is work I or higher I to that with within bit the still stock of lot Adam. hope acquisitions as say, we public our private grow some still it's as continue the rates. in I but profitability. have look in made consolidate significantly look you terms a narrows where at process, at And our up deals then in the end challenging, looking we've we some on that growth constantly investment last eyes at through keep volatility looking as interest and over our have is what at macroeconomic And might

determining every take will of the -- we've utilize continue circumstances. we been the final mix -- approach levers one pretty So into we forward. be allocation the adapted to capital to the will take outcome. of That the all over years, going will And appropriate go much in those to those what we've

more I And quick one squeeze just in. one

EBITDA of if -- $XX-odd that and of out look net and dividends Just do updated million about free the million to of and flow how continuing cash subtracting would think also the controlling I on at the we the conversion the $XXX could you year guidance, have. CapEx presumably interest, just out that full just that, the ops

strong inflow so year, Adam, the not the inflows the level. we capital year, year. at we strong suppose end I expect maybe at this very same Yes. while And had very working last -- of quite

You impacts have unwind of the business up the talked remember, XXXX. in and stocks of the I about seasonal built also impact Chilean of the we the

So in I overall terms, I reasonable a suppose, a a approximation. cash XX% we to free XX% to of consider that's be flow type conversion think normal

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

of set a on congrats strong First results.

a kind just from couple me, So of the into just jump divisionals.

Just sure sourcing a just to the think America. a you about on I strong Is terms of North I'm Is I Dole? from another quarter Europe fruit, general best And just all, across is share volumes the to this. been fresh demand this I and this? it of on do mean, circle growth? is it's better mean, what's in first square this this going Or way dynamic? market persist, mean think?

Johan

has working And on all, shipping that's of the persist. the customers. of that first and back we good had. service, overall we comes sourcing that done and But team the high-quality have, very it setup very it quality also on are network focusing when on very job have a some to a good we making good We

some the market see we're retails gaining having can we of So share.

the to and And take customers. working some future. we back course, been that the are some of hoping of gaining continuing into also So on some we we new -- then new have that, yes, on volume but are able

you of for maybe of bridge about just this And you well year. there of kind of the spoken of Or noted the Americas HX. the of I I And just diverse kind the of expectation across you volume I the of the, EMEA? what's on just best just about on -- the of rest the timing the the you've you've is into some second is momentum maybe the world focus business? kind persist? statement, some are upside may mean, maybe then shortages think say, negatives, you the second in some kind -- secondly, in good think diversified of of now and And just half that but way know half potentially previously unwinding that -- into in an to there seasonal kind be I think the to

Yes.

EMEA, on if some if I think diversified look on year. our look them at some are products, of of if of been that margins you not of business into and strong, some is other first locations get downs key East some are very, to sell But pricing Europe the you the that look and the Europe. where half strong those markets had say, opportunities which or it's at, Far very you in to a interlinked, have Americas exported

and can by you less see coming some may divisions. Europe So into be our fleet

side I out, despite different. is, we on disposing little very full that the the think over that Americas or what progressive of Obviously, relatively expecting within as year well that we're produce year, dramatically the profile half overall basis. progressive of pleased out going bit to of to but we're seeing it, division year within projects different, not back a taking taking strong the have be a

And session. Rory comments. question-and-answer that closing concludes Byrne back for our I to now will turn the [Operator call over Instructions]

XXXX of a thought really adds for outcome half to following We're was XXXX. into Huge and going quite performance of full back for dedication, very we're continued business, That positioned aspects start strong very strong a point I time. at thoughts first our strong of we quarterly and of Well, XXXX. from number all in a you. was to pleased good over of the sequence amount we growth. to quarters believe the what the Thank well a this on good such going work,

of you once thank hugely Thank us of our and to So you. all again joining to all for committed people today. you

now for This and your disconnect. you participation, may call. you concludes today's conference Thank