Fresh produce company Dole has reported higher revenues and earnings for the second quarter of the year and said it is in a position to deliver a good result for 2023 as a whole.
Dole said its revenues for the three months to the end of June rose by 3.3% to $2.141 billion from $2.051 billion the same time last year.
This was mainly on the back of strong performances in the Fresh Fruit and Diversified EMEA segments, it noted.
Dole's adjusted earnings before interest, tax, depreciation and amortisation increased by 9.7% to $122.7m from $111.8m.
The company has declared a cash dividend for the second quarter of 2023 of $0.08 per share.
Carl McCann, Dole's executive chairman, said today's strong results were due to the dedication and efforts of all its staff across the group.
"As we progress through the second half of the year, our performance for the first six months gives us confidence in achieving our targeted Adjusted EBITDA for the full year of at least $350," he added.
Dole said that revenue in its Fresh Fruit division rose by 4.1%, or $33.2m in the three month period under review.
It reported a positive impact of higher worldwide pricing of bananas and pineapples and worldwide increases in volumes of bananas sold, which was partially offset by lower volumes of pineapples sold.
Revenues in its Diversified Fresh Produce - EMEA division increased by 7.7%, or $65.8m, mainly on the back of inflation-justified price increases across the segment and a positive impact from acquisitions of $15.9m.
But revenues in its Diversified Fresh Produce - Americas & ROW division fell by 6.8%, or $30.6m.
This was mainly due to lower volumes across the segment, which was partially offset by continued strong performance for potatoes and onions in North America and inflation-justified price increases across the business.
Looking ahead to the second half of 2023 towards 2024, Dole said there is the potential for disruption in many of the key growing regions in Central and South America due to the onset of El Niño climatic conditions.
But the company said it was monitoring the changing weather patterns closely and said it believes it is well placed to deal with potential challenges using its diverse sourcing network and due to its advanced farming practices.
"While the macro-economic environment remains difficult to predict, in our business we have seen positives such as the strengthening euro relative to the US dollar, more open supply chains, and moderation of inflation for certain input costs," it stated.
"However, we do continue to be impacted by higher interest rates and other foreign currency movements," it added.
