Dole 2Q Profit, Revenue Climb on Solid Demand Trends

Dow Jones08-10 18:23
 

Dole logged higher profit and revenue in the latest quarter, as consumer demand remained solid, thanks to current health and wellness trends.

The agricultural company on Monday posted a second-quarter profit of $26 million, or 27 cents a share, up from $9.97 million, or 10 cents a share, a year earlier.

Stripping out one-time items, adjusted earnings were 46 cents a share, in line with analyst expectations, according to FactSet.

Revenue ticked up 2.9% to $2.5 billion, just below Wall Street models for $2.53 billion.

Fresh fruit revenue was roughly flat at $972.8 million, as high volumes of bananas sold in Europe were offset by lower volumes in North America.

Revenue across Dole's diversified fresh produce business in Europe, the Middle East and Africa rose about 1%, to $1.11 billion, while the business in North America notched revenue of $440.1 million, up 14% from last year.

Moving forward, Dole said it continues to operate in a volatile environment, facing elevated fuel and shipping costs, as well as geopolitical uncertainty.

"While some of the sharp cost increases experienced during the second quarter appear to be moderating, the operating environment remains complex," the company said. Dole is benefiting from resilient consumer demand, though, supported by long-term health and wellness trends.

The company is now targeting full-year adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--of about $400 million, compared with a prior outlook of at least $400 million. Analysts are looking for $402.7 million.

 
 

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