Dole Reaps the Rewards: Strong Q2 Performance Sets Stage for Continued Growth

Dole plc, a leading global fruit and vegetable producer and distributor, has reported a robust 1.5% increase in fresh fruit revenue for the second quarter of 2024, reaching an impressive £671 million—an increase of £9.5 million compared to the same period last year.

This growth is a testament to the company’s strategic initiatives and its ability to capitalise on market dynamics, particularly in the highly competitive fresh produce sector.

The revenue boost was largely driven by a surge in banana volumes across key markets in Europe and North Africa. The increase in banana prices, alongside higher plantain sales, further contributed to this positive performance.

These factors underscore Dole’s adeptness at managing its supply chain and responding to regional demands, ensuring that the company remains a dominant force in the global fruit market.

In addition to the revenue gains, Dole’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) saw a substantial 7.3% increase. This growth was fuelled not only by higher revenue but also by a significant reduction in fruit sourcing costs.

This efficient cost management highlights Dole’s focus on operational excellence, enabling the company to maximise profitability even amidst fluctuating market conditions.

The company also reported a 3.2% rise in diversified fresh produce revenue across Europe, the Middle East, and Africa, with a remarkable £23.8 million increase on a like-for-like basis. This uplift was primarily driven by strong performances in key markets such as the UK, Ireland, and Spain.

Dole’s success in these regions is further bolstered by the successful integration of recent acquisitions, which have expanded its market presence and diversified its product offerings.

However, the company faced challenges in the Americas, where diversified fresh produce revenue declined, primarily due to the sale of Progressive Produce in March 2024. The 65% equity stake in Progressive Produce LLC was sold to PTF Holdings, resulting in a 14.7% decrease in revenue, equating to £48.6 million.

Despite this, on a like-for-like basis, adjusted EBITDA soared by an impressive 36.4%, driven by improved performance in North America and favourable seasonal timing in South America.