Dole’s profit beats estimates despite sales decline

Fruit and vegetable distributor Dole (DOLE) reported second-quarter sales and profit results that beat analysts’ estimates despite falling demand in some key markets.

The Ireland-based company reported second-quarter adjusted earnings per share of 49 cents, beating Visible Alpha’s estimate. Revenue fell 0.8% from a year earlier to $2.12 billion, though that figure also beat expectations. The company attributed the decline in part to the negative impact of acquisitions and divestitures, as well as unfavorable currency translation.

By region, Dole’s Diversified Fresh Produce segment sales in Europe, Middle East and Africa rose 12.6% to $944.9 million, with strong performances in Ireland, the United Kingdom and Spain. However, Diversified Fresh Produce sales in the Americas and Rest of the World fell 14.7% to $356.1 million. Fresh fruit sales rose 1.5% to $851.5 million, driven by stronger demand for bananas in Europe and North America.

Dole raises its full-year forecast

Dole’s second-quarter adjusted EBITDA was $125.4 million, up 2.2% from the same period a year earlier and ahead of expectations.

The company said that due to strong results in the first half of 2024, it is raising its full-year adjusted EBITDA forecast to at least $370 million from the previously expected $360 million, although this is lower than analysts’ forecasts.

Dole shares were little changed in intraday trading Wednesday after the company released earnings. They have gained more than 18% since the beginning of the year.