Dole Reports Q2 Revenue Growth Amid Rising Sourcing Costs
On August 10, Dole plc (NYSE:DOLE) reported second-quarter financial results showing a revenue increase to $2.499 billion and net income more than doubling to $35.1 million. However, Adjusted EBITDA fell by 14.8% due to rising fruit sourcing costs that the company had previously warned about. The Diversified Fresh Produce - Americas & ROW segment was a standout performer with revenue up 13.9%, driven by seasonal benefits and better pricing in its export business. The company also completed two significant transactions: selling its Ecuador port for $95 million and acquiring Greenfood Fresh Produce in Scandinavia. Despite these gains, the Fresh Fruit segment saw Adjusted EBITDA drop by 30.9% due to higher sourcing costs, shipping expenses, adverse weather affecting pineapple volumes, and currency fluctuations. Gross profit fell by $23 million as a result of increased cost of sales and non-recurring legal charges.
Topics: cost_pressures dividend_announcement ebitda_decline revenue_growth stock_repurchase