Fresh produce company Dole has reported higher revenues and earnings for the three months to the end of June but said it was cutting its full year earnings forecast.
Total Produce completed the acquisition of the remaining 55% of Dole Food Company to create Dole plc last year.
It said today its revenues for the second quarter rose to $2.4 billion from $1.2 billion the same time last year, mainly as a result of the impact of revenue from Legacy Dole.
Adjusted EBITDA for the three months to the end of June increased to $108.8m from $94.9m.
Carl McCann, Dole's executive chairman, said the enhanced scale and diversification of its vertically integrated business enabled it to deliver strong results for the second quarter of 2022, in line with its expectations.
But "due to a slower than anticipated return to full operating profitability in our Fresh Vegetables segment and the translation impact from the strengthening US dollar, we are now targeting adjusted EBITDA in the range of $330m to $350m for the full year, a reduction of approximately 5.5% from prior guidance," Mr McCann said.
Dole said the geopolitical conflict in Ukraine and Russia is ongoing and as such it remains difficult to accurately predict what overall impact the conflict may have on global trade flows, cost inflation and foreign exchange rates, and how the group's results of operations and financial condition may be impacted over the remainder of the financial year.
The company also said that the global economic environment remains uncertain and complex and it is seeing positive trends along with some further challenges for the remainder of the year.
"We are seeing signs of increasing demand in categories with lower retail selling prices such as bananas, whereas there is evidence of demand for higher priced value added products reducing," it said.
"Additionally, on the positive side we have seen stabilization in prices for key commodities such as packaging, fertiliser and oil," it added.
