• Group Revenue: Increased 6.7% on a like-for-like basis to $8.5 billion for the full year 2024.
• Adjusted EBITDA: Increased 6.7% to $392 million for the full year 2024.
• Net Income: Adjusted net income was $120.9 million, with adjusted diluted EPS of $1.27, an increase of 2.4%.
• Net Debt: Reduced by over $180 million, ending 2024 at $637 million with a net leverage of 1.6 times.
• Fresh Fruit Segment: Delivered $214.8 million in adjusted EBITDA for the full year, an increase of $5.9 million compared to 2023.
• EMEA Segment: Delivered adjusted EBITDA of $131.5 million for the full year, with like-for-like revenue growth of 4.4%.
• Diversified Fresh Produce (Americas and ROW): On a like-for-like basis, revenue increased 13% and adjusted EBITDA increased 52.3% for the full year.
• Free Cash Flow: $180.3 million for the full year 2024.
• Dividend: Declared a dividend of $0.08 per share for the fourth quarter.

• Warning! GuruFocus has detected 4 Warning Signs with MFIC.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dole PLC (NYSE:DOLE) exceeded its adjusted EBITDA guidance by $12 million, showcasing strong financial performance.
• The company achieved a 6.7% increase in group revenue and adjusted EBITDA for the full year 2024.
• Dole PLC (NYSE:DOLE) successfully reduced its net debt by over $180 million, ending the year with a net leverage of 1.6 times.
• The fresh fruit segment delivered a strong performance, with a $5.9 million increase in adjusted EBITDA compared to 2023.
• Dole PLC (NYSE:DOLE) declared a dividend of $0.08 for the fourth quarter, continuing its commitment to return cash to shareholders.

Negative Points

• Dole PLC (NYSE:DOLE) faces headwinds in 2025 due to Tropical Storm Sara impacting its Honduran operations.
• Higher shipping costs into the US and logistical issues at ports posed challenges in 2024.
• The company anticipates a decline in adjusted EBITDA for 2025, with guidance set at $370 to $380 million.
• Foreign exchange movements and geopolitical uncertainties add complexity to Dole PLC (NYSE:DOLE)'s operations.
• The fresh vegetables division recorded a non-cash write-down of $78.2 million, impacting net income.

Q & A Highlights

Q: Could you unpack the EBITDA guidance, particularly the 4% decline at the midpoint? How much of this is due to known headwinds like Tropical Storm Sara and difficult comparisons versus 2024? A: Rory Byrne, CEO: The guidance reflects a combination of factors. While we haven't built in specific macroeconomic or geopolitical issues, these do create uncertainty. The decline is partly due to the impact of Tropical Storm Sara on our Honduran operations, which affects sourcing and shipping schedules. Additionally, foreign exchange movements have been challenging. We expect the headwinds to impact early quarters, particularly Q1, with a more balanced performance throughout the year.

Q: Regarding tariffs, what mitigation strategies and contingencies are you evaluating? Can you renegotiate contracts or adjust pricing if tariffs are imposed? A: Rory Byrne, CEO: We supply products like bananas and pineapples that the US can't produce, so we hope tariffs won't affect these. If tariffs are imposed, pricing adjustments may be necessary. We have navigated similar challenges in the past and believe we can manage through them.

Q: On capital allocation, given the progress in deleveraging, is there flexibility for targeted M&A? A: Rory Byrne, CEO: Capital allocation is a priority. We are considering strategic questions, such as the potential disposal of the vegetable division, which could influence our capital allocation strategy. We continue to explore M&A opportunities, but valuations need to be favorable. Internal development projects are also a focus, and we benchmark these against potential buybacks.

Q: Can you provide more color on the profit weakness in the diversified EMEA segment? Do you expect this to persist? A: Rory Byrne, CEO: The EMEA division covers a wide range of markets and activities, leading to some ups and downs. While there are challenges, there are also opportunities, and we don't see any strategic concerns. The integration of legacy businesses is progressing well, offering more opportunities than challenges.

Q: With strong performance in kiwis, grapes, and avocados, is there any elasticity risk if prices increase further, especially with tariffs in mind? A: Rory Byrne, CEO: While tariffs could impact pricing, the US doesn't produce significant quantities of avocados, so we believe demand will remain stable. We expect the market to find a balance over time.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.