Dole (DOLE) 13 Nov 242024 Q3 Earnings call transcript

Welcome to the Dole Plc Third 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. [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.

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

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

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

us for third James. as you, quarter Thank joining discuss today XXXX. our everybody, you thank for of and we results the Welcome,

the a a with the Fruit Diversified basis of increased Group over $XX quarter like-for-like line very for the quarter revenue in by for the by year. the a good financial X.X%. Adjusted was of continuing Well, adjusted The market positive quarter year increase Slide like-for-like a reported X% third EMEA. growth offsetting basis. was X.X% in and modest X turning EBITDA Americas our business, up this on ahead another and EBITDA basis, Fresh Diversified on the the momentum built to like-for-like on was in QX driven of firstly So expectations course our segment, prior strong was performance in and million highlights. decreases

capital we focus more pleased which to a to level major management a see are high absolute detail be and debt will million reduce investment our the and despite by further, later quarter, relatively a us, our call. for continue made in allocation discuss leverage level Cash decrease in the in of capital of $XX we on driven

segment was and of to a Fruit the costs million, year, that Slide ongoing compared docking with and to starting performance EBITDA our Adjusted due Fresh but process to last now higher calls. a decrease our small dry ahead segment. X result third quarter the good taking highlights in own $XX.X operational the Turning our was in This shipping account flagged we delivered in the quarter. into that earnings expectations, the previous another

North impacted been market America by docking. the dry has predominantly

higher anticipated and with had good pricing, costs. higher shipping we of compensating volumes bananas the However, partially sold a performance overall better

higher bananas In continued the costs. as in driven as we momentum, European market, by positive our well lower shipping by volumes

sourcing the industry-wide momentum Both basis, and believe in some allowing an Looking to for on European costs, well markets. positive markets, American both are also tight we North remained to for remainder year the pricing but supply placed. ahead and the of we leading pineapple certain higher banana

docking shipping Food process. to anticipate been a into costs supply deliver good consistent, has having As experienced us Overall, expectation of account taking progressed, the higher dry segment competitive clear, the customers. have all our a quality our a to the allowing team, again our end and base of year continued service during benefits we the the Fresh diversified year, to

charter Strategically, the U.S. our chartered adding additional also to flexibility agreement. vessels two two gives to service a own operation to any East our us an dock option but year a the our currently segments, second this our disruption with by XXXX turning vessels highlight East purchase dry on in in through would attention bringing marketplace. pathway Coast Coast to primary our service our Before the shipping vessels Diversified fleet agreement the major to service the without in expand us under provides for like also recent ownership I early growth

result revenue very remain businesses. Positively, basis. Diversified of business our commodities an able for expectations. some moving The in important a progressive strong on food parts QX. be some the and the impacted we supply supply in impact Canarian but a IT -- delivered in the South to operations with segment basis, quarter, full sourced impacting in growth in impact and by shortages lower American taking was its result this is the of we Diversified a of in projects result year a with growth quarter and strong one-off sale good some expect did avocados underlying as weather line to of following trade quarter in some other out wholesale particular. QX, in bananas, our volume price as a own segment, another timing on service a for the deliver Spain our certain Americas, This categories delivered to with a strong segment on overall good quarter position as was positive out EMEA well costs on revenue for most the broadly of seasonal North well as poor good So across seasonal indicating typically and of of our driven temporary segment. that have satisfactory differences continued whereas and crops America like-for-like shortages basis, still by

winter export Our business a to American improve, having with in South also the continue positive scope season and showed North American products. while turnaround much a from business, had quarter still our Berry to good developments year prior good

the of seasons export remainder the again will the of of with and progress both up to year, Peru side key activity export we on as several pick the Chile. ahead through QX Looking start

As in the harvest of through year-end. profitability will important play always, the role how an timing gets specific recorded

anticipate North continued we momentum seasonal strong the operations. side as American our performance in on good well export a as However,

to Fresh Vegetables Turning the business.

hopeful As is for the ultimately noted process in our Fresh most calls, we recent deliver and the sale actively we to been business. a we for termination agreement good this strategic since all stakeholders. will have alternatives of That Express, our remain outcome that ongoing, exploring

pack operating to this that, for within that value-added delivered earlier performance packed you to the The to Operationally, the the continuing each this demonstrating business experienced anticipated management we this with business is good conditions deliver results of improved over performance market good XXXX. income the quarter despite the in our third underlying division. And third is positive deliver to favorable quarter very in committed and continued and that team is pleased financial of on units are track year, softening fresh I'll again the fresh quarter. both Jacinta making hand review the was give

everyone. good you, Thank and day, Rory,

of to primarily by $X.X Strong was X. increase EBITDA $XX.X driven partially to $X.X was performance the in $XX.X business across growth. the Produce. due discontinued Diversified and our the X% like-for-like million X.X% other basis, group the value prior income $X jurisdictional lower QX discontinued in million decreased in X.X% million Firstly, year-on-year decreases turning against impact tax on The year EBITDA a related benefit a the excluding or decreased to the an this with million our Slide $X.X compared increased levels operational of period. Net sale primarily the was on also segments offsetting changes million Adjusted our like-for-like EMEA a having market performance adjustments this exceptional primarily vegetable sale the improved million, operations in was all Partially Fresh Americas gain segments, financial basis, $X.X rates. fair by recorded prior with in Progressive to year Reported in and Fruit performance Interest impact or to increased due FX expense of segment. On and income is and There continued drove offset of in operations prior in lower revenue lower tax from 'XX quarter. of QX on decrease for of of due strong interest adjusted results million. than instruments. Diversified income of and X.X% the million. continuing mix land. debt items the income profit $XX.X fresh and 'XX, a discrete year the This also this of

tax was lower expense, an per was expense. adjusted mainly and share. adjusted to and basis, offset higher EBITDA income diluted decrease due lower income adjusted million, by On net $XX EPS interest $X.XX partially was adjusted Year-on-year

quarter updates for to our continuing third now for Turning divisional the operations. the

delivered Fruit of with Fruit as volumes to the bananas to offset for turning Firstly, division was and plantains. worldwide worldwide The lower of pineapples X.X%. another Fresh pineapples, and lower on good pricing of and worldwide XX. Fresh higher as partially result due bananas volume by revenue well in Slide primarily revenue increase higher pricing increasing sold The volumes

EBITDA impact was lower adjusted docking-related of costs. quarter due the to this As anticipated, dry

ahead However, primarily revenue of strong our was the of $XX.X to expectations, growth. result million due

as in impact quarter, Turning XX. to a Africa. increased Ireland, temporary delivered in X.X%. Adjusted strong and U.K. positive on South a incremental $X.X Spain a supply million Produce due primarily the This XX.X% $X.X charges driven U.K. or $XX.X an Netherlands difference and acquisitions higher seasonal revenue like-for-like Slide segment the timing FX favorable well basis, and like-for-like On million. in basis, as to million impact a the Fresh EMEA on performance growth and one-off the Diversified IT from in by XX.X% revenue declined of EBITDA and issues

Finally, this Americas revenue result impacted a Reported by Slide quarter. and Produce of segment on turning World This Produce of Progressive in Rest year. to Fresh very the delivered XX. was earlier sale the Diversified strong

North well the EBITDA across ahead offset the improved basis, positive development as of on a business million, most commodities disposal X.X%, Produce in performance in in On business. and commodities volume a in like-for-like growth $X.X revenue Berries like-for-like increased by our were basis, of million driven EBITDA increased America. Adjusted $X.X most primarily prior These North adjusted across America. positive was price to primarily North due as the However, year. and by primarily the margin revenue avocados America impacts growth Progressive

Slide leverage to remain $XXX.X our capital operations X.XXx. QX. year-to-date. to net continuing by $XX from reduced XX. the debt are decrease million Net leverage pleased the was was in reduction compared Turning quarter that activities a managing The further operating in to and allocation our focused provided by very and cash We driven on million our in

around timings inflow in in a seasonal positive a working we the being operations while was of we is year-end As from And bring quarter. significant working to saw can capital to variability this expenditure quarter. in the million year-end. Cash third the $XX.X trend continue capital anticipated, capital, third the expect conscious continuing that into

we secured as expand the adding Due at XXXX. mentioned, two vessels an recognized addition of both to ownership our As financial and agreement September. lease, the commitment, have Rory bringing recently early with obligation our to a them this asset under we to finance our of currently sheet in on charter, XXth the fleet balance

in For million expenditure, opportunistic these of including to addition $XXX now be finance million. capital $XXX the to additions after the year, full by expect we the vessels, of lease total range

as earlier, lower continued well prior the levels with year to base to lower debt mentioned due I expense interest decrease has rates. as compared As

be we XXXX. year, January approximately the for including to December X, our operations dividend of now $X.XX are commitment on shareholders, a shareholders $XX declare to to For record pleased full interest cash we the paid Continuing quarter, be to third our return million. to expect will XX, on discontinued which XXXX, expense, on

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

Jacinta. Thank you,

$XXX robust pleased of raising putting very are another towards million an this the adjusted deliver full target quarter, at we're year the to XXXX. So And we our the as full us year. in to for delivered excellent performance year, end to result least position for a strong EBITDA have move we

operations side, we capital disciplined our flexibility to investment the allocation given execute additional opportunistically bring has that on a the are positive two support fleet. to vessels this approach quickly transaction into On quarter pleased our our and us to

aims all with activity our we approach the our have As we opportunistic disciplined to -- strategic both possibilities continue and will investment different with capacity we to execute and ensuring emerge. capabilities also forward, move that any while planned on our opportunities

across delivering on conclusion, on fully good key our strongly focused In very do also track our our want the to as their for added plc finishing strategic we're priorities performance pleased now excellent are Dole remainder thanking commitment to by their well to all year once and financial again operating again record forward target and another year for have group on of enhanced the and and the ongoing while drive ongoing people support. to finish our dedication customers for and year. I our focusing as suppliers full the

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

[Operator Instructions]

first Barnes with of Your line Deutsche Christopher the comes from question Bank.

Peru on know I specifically? mindful just guess year Chile you're be EBITDA setting tighter but banana end. any from called could of walk be $XXX just know Fresh would helpful. low at we Diversified million Fruit target through to seasons supply be really first the fourth as strength export the you across floor, conditions, down additional color quarter The least well as I I that start guidance. implies quarter in of takes and full and and XX% at could puts out the businesses fourth the you but should a

to Yes. a I as typical I historical half the the there's the towards of half where weighting we may mean year second heavier that's the of half compared this flagged, one, first the end be Chris, of more year of a think year. years at the

has as EBITDA overall to so of an we've Progressive, that impact remember $XX on million. got and well QX You full some sold that year on impact

as from today's far know, world in is Forecasting, exact an science. we

with in look strength back a election We a it last million, costs post dry do of $XXX year the strong finish dollar. You at We've the the with $XXX $XXX base the now the comfortable and million. improvement be the just the got. our $XXX need year in strong had from half the particularly that higher, happened quite the to that We in to stepped to issues what with we've But XXXX. dollar at shipping going docking of are with year up we're million million. know

putting think give it's into the mix, to to So everything appropriate we number market. the the

Diversified profitability Divesting secondly, the And year-to-date, from the masked has essentially Progressive helpful. Americas then notably Produce. Very business strong been impact

any in the any strength first much there Year New timing is separately, real way that earlier it have that Or the in underlying to weeks than Cherries? that in for is that 'XX just improvement of Lunar was Chile XXXX. profitability versus into then on seasonal quarter dynamic? is the X a X Is really on. of So how that's like is business then and to it around frame fourth shifting going And positive impact XXXX pass some I'll months? And

Yes. Yes, the XXXX, to business, rates. go Diversified that the shortage the disruption, freight Americas in the disruption, segment from 'XX you logistics mean, Chris. and -- if look supply most suffered probably I of chain at we with very dramatic back increase Thanks, significant right the containers it's the

discharged market. into So get product where impact periods couldn't had North segment. it the had very a We on big we that American

settled all that's down. So

from negative terms a instead we'd as lots and production of streamlining that has the market think had probably tailwinds The have worked of us. and The the of that work headwinds, in we done of of well. of seasons well behind worked improving particularly American to product of in having from of are cherries management it's production division, Chile, say into flow the product lot that within I import well. worked flow a change well. processes has terms into We've from organization, Chinese few

reasonable consistent in have can little can be do it think little a we're more But volatility. we've stable, so Chile, that amount a division, more which level. profit a but own entire exceptionally tends EMEA there We production can variable -- our of that of repositioned comfortable had an to have year. than, bit business, they I strong a this be bit that be say, year

it would that, as we've recognize not be it's it well. wrong take to there when So to and got

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

starting that? best on one, right. on few a ask QX? about extension maybe the and Americas expect another back we should Is into all and to that frame season Rest kind cherry touching I'll a them off last the of should is, Diversified mean, strong QX expect questions if profitability I a by got it? maybe guess results. my guess side. just more question just little on Congrats just way of as bit. of of that's I a World more normalized I into we And revenue I again one normalized the of the next year and off well set

said. to any what to make on already just that, add Johan, comment Do you I want maybe

No, And considering it yes, is comes think when is normalized right. could QX, year it New probably volume into what Yes. you normalize, Chinese falling you the this I you Year with the of some to where look cherry said at when say coming.

And both times you mean, the fairly revenue? I helpful. North mean, the of driving outperformance number That's then guess Understood. overall factors and Fruit. QX, and profitability we expect across I expectations. see the quarter I are of America? -- supply I that are and what hat was to kind above should just of on on we your it demand flagged Fresh a consistent And in on kind my if if on and that I look basis terms Europe sequential a forecasting volumes another put into of

as well, you to maybe? that Do want Johan, address

Yes.

Fresh and calls is of dynamic it. always, very with puts as Fruit on So a lot

of we saw what So organic bananas, driven what solid we and demand. but the bananas also a It's now saw demand time, up America, drier we at was we it bananas, in good vice that's tight in wetter normal by Central and and back when on the weather the QX, during Nino drier for right last versa. good have been in event. same And -- on very supply year the Ecuador, El a have of back

So has tightened supply. the weather up the

balance supply even secondary hit. the taking core the are that is tight, impact it a does as markets it's markets directly had we So the have the if normally good because supply-demand not

that And that higher, very year last But some secondary market. Dole in been was we normalized lower. shipping we a we're that we we also business we to [ space low on also bit the have also been the some and seen has had bit the being benefit seen of more as to higher year don't do costs tailwind And have being see QX. it a then beneficial there, cargo our where in But of little selling Ocean sell pines has cost strong. see like expect for the we us. being have same reason that consistent where benefit that And on And ships volume some fruit a being ]. little we a

dry vessels that in, But in That's through helpful. one, the on cycles, you further final on previously growth And to in greater just touched the it really, there? sense. to you more comes were upside really one I perfect early two potential. chartered you go outlined just a mean when maybe detail also XXXX. Do bit then want docking maybe makes just the coming that growth flexibility potential

charter of the areas believe, other a And we we the bit mean the charter, to really Colombia. will our grow. on did volumes to where us more capacity Yes. We capacity extra develop volumes charter, that found take increasing vessels be of that can just dry with a I a programs. us avocados with docking capacity, may give annual the the giving view little out given we couple flexibility the short-term there

strong of on that American of Gary, a strong our that volatility specific North seen of Sea level the certainty on think next service markets.We of comply it's and to advantage capacity important. We've freight huge is certainty the position rates Suez capacity, lanes do important particularly a into and Canal capacity a over with of us major that years. of we with the last very sure having having X right We about think the the very we requirements retailers the to give fully grow haven't will the course yet, our put the over number course the months, on and closure the Red the ships, a rightsized trade of number issues make but different amount the

over We further will have I currently no comments. Byrne queue. our now Rory for to in the questions turn closing back conference

the very has Well, Thank we're way you. evolved. pleased XXXX with

of on to think focus add a over I to sequence areas time. got solid strategically. quarter period good of it's a strong of now another our results financially very a and operationally, business all We've sustained good

So continued well for we're growth. very we believe positioned

you our us thank joining people, once our again today. to for investors, our thank So suppliers, and committed all customers, you

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