Dole Plc · NYSE:DOLE
Dole — Q4 2021 Earnings Presentation
50 slides from Dole's earnings presentation, Mar 15, 2022
Slide 1: Q4 2021 Results
Q4 2021 Results March 15, 2022
Slide 2: Disclaimer
Disclaimer Today’s presentation includes forward-looking statements that reflect Dole plc’s current views with respect to future events, financial performance and industry conditions. These forward-looking statements are subject to various risks and uncertainties that may cause actual results to dif
Slide 3: Agenda
Agenda FY’21 Operational Financial Highlights Review Review Outlook and Q&A Appendices Strategy Q4 2021 Financial Results 3
Slide 4: Speakers Today
Speakers Today Rory Byrne Johan Lindén Frank Davis CEO COO CFO Q4 2021 Financial Results 4
Slide 5: FY'21 Highlights
FY’21 Highlights
Slide 6: 2021 – A Transformational Year
2021 – A Transformational Year Key Financials • Acquisition of DFC by Dole plc completed July 2021 FY’21 FY’20 Variance • Significant increase in Scale and Footprint • Over 114,000 acres of owned land Revenue $9.3bn $4.3bn +113.7% Pro-Forma Reported • 160+ distribution facilities • 75 packing houses
Slide 7: FY'21 Highlights
FY’21 Highlights Pro-Forma Revenue FY’21 FY’20 Variance • Strong FY results with growth across key metrics • Pro-Forma Revenue and Pro-Forma Adjusted EBITDA growth in $9.3bn $9.0bn +3.5% line with guidance • Diversified business model provided resilience within Pro-Forma Adjusted EBITDA challenging
Slide 8: Operational Review
Operational Review
Slide 9: Strategic Highlights – FY'21
Strategic Highlights – FY’21 • Price increases agreed across the business to mitigate inflationary pressures • Synergies: Integration of management teams and progress being made in important areas • Delivery of 2 new vessels - Dole Aztec and Dole Maya • Successful replanting of 2,900 acres in Hondur
Slide 10: Value-Added Salads Product Recall & Temporary Plant Closures
Value-Added Salads Product Recall & Temporary Plant Closures • Initial voluntary recall announced December 2021 due to possible health risk from Listeria • Temporary suspension at Bessemer City, NC and Yuma, AZ plants to Financial Impact of Recall & facilitate investigation and sanitation procedures
Slide 11: Financial Review
Financial Review
Slide 12: Financial Results
Financial Results FY’21 FY’21 FY’20 Variance Variance Reported Pro-Forma FY’21 Reported FY’21 Pro-Forma Reported (Unaudited) v Reported FY'20 v Reported FY'20 Revenue - $’m 9,286 6,454 4,346 +113.7% +48.5% Adjusted EBITDA - $’m 393.6 290.1 251.5 +56.5% +15.3% Total Assets * - $’m n/a 4,668 1,886 n/a
Slide 13: Pro-Forma Financial Results
Pro-Forma Financial Results Pro-Forma Revenue $’bn +3.5% Financial Commentary 9.0 9.3 • Q4’21 PF Revenue growth of 2.3%, driven by increases in Fresh Fruit, Diversified Fresh Produce +2.3% – EMEA and Diversified Fresh Produce – Americas & ROW 2.2 2.3 • Growth across all reporting segments contribute
Slide 14: Pro-Forma Financial Results
Pro-Forma Financial Results FY Q4’21 Q4’20 FY’21 FY’20 Variance Revenue - $’m 2,251 2,201 9,286 8,969 +3.5% Adjusted EBITDA - $’m 61.1 71.8 393.6 371.8 +5.9% Adjusted Net Income - $’m 13.5 18.0 141.2 126.3 +11.8% Adjusted Fully Diluted EPS - $ $0.14 $0.19 $1.49 $1.33 +11.8% Q4 2021 Financial Results
Slide 15: Fresh Fruit
Fresh Fruit Pro-Forma Revenue $’m Financial Commentary +2.9% • Q4’21 PF Revenue increased 6.9% primarily due to higher pricing 2,796 2,877 in North America (“NA”), continued strong performance in commercial cargo and higher Pineapple volumes +6.9% • FY’21 PF Revenue increased 2.9% primarily due to h
Slide 16: Diversified Fresh Produce EMEA
Diversified Fresh Produce EMEA +5.4% Pro-Forma Revenue $’m Financial Commentary 3,263 3,438 • Q4’21 PF Revenue up 4.3% on prior year • FY’21 PF Revenue 5.4% ahead of prior year driven by positive FX +4.3% movements and strong performance across all channels • Q4’21 PF Adjusted EBITDA increased 1.9%
Slide 17: Diversified Fresh Produce Americas & ROW
Diversified Fresh Produce Americas & ROW +3.8% Pro-Forma Revenue $’m Financial Commentary 1,713 1,779 • Q4’21 PF Revenue up 0.8% on prior year • FY’21 PF Revenue increased 3.8% driven by strong performance +0.8% of Berry category and growth in South American fruit exports • Q4’21 PF Adjusted EBITDA
Slide 18: Fresh Vegetables
Fresh Vegetables Pro-Forma Revenue $’m Financial Commentary +1.0% • Q4’21 PF Revenue decreased 8.5% primarily due to the impact of the Value-Added Salads product recall and temporary plant 1,268 1,281 closures in December 2021 -8.5% • FY21 PF Revenue up 1.0% due to higher pricing in Value Added Sala
Slide 19: Capital Allocation and Leverage
Capital Allocation and Leverage FY’21 Capex: Invest in our business to Capex $190m drive long term growth Q4’21 Dividend $0.08 Commitment to return Dividend per share cash to shareholders FY’21 Net Debt / Pro-Forma Maintain leverage in line Leverage Adjusted EBITDA: with targeted level: 3.0x 2.87x Q
Slide 20: FY'22 Outlook
FY’22 Outlook
Slide 21: FY'22 Outlook
FY’22 Outlook FY’22 Outlook FY’21 Actual Pro-Forma Revenue $9.6bn - $9.9bn $9.3bn Adjusted EBITDA $370m - $380m $393.6m Capital Expenditure ~$125m $190m Net Interest Expense ~$45m $67m* Effective Tax Rate ~25% - 28% 26% Q4 2021 Financial Results * Actual net interest expense: Legacy TP + Legacy DFC
Slide 22: FY'22 Strategic Priorities
FY’22 Strategic Priorities • Re-build Value Added Salads profitability • Focus on integration and synergies • Continue to focus on faster growing categories – Berries, Avocados, Organics • Continue to seek out value enhancing acquisition opportunities • Monitor ongoing geopolitical situation Q4 2021
Slide 23: Q&A
Q&A
Slide 24: Appendix I: Dole plc Overview
4 Appendix | = Dole pic Overview
Slide 25: A Global Leader in Fresh Produce
A Global Leader in Fresh Produce • We produce, market and distribute an extensive 2021 2021 variety of fresh fruits and vegetables Pro-Forma Pro-Forma Adj Revenue EBITDA • Our produce is sourced both locally and from around $9.3bn $393.6m the world from our deep sourcing network • Sales in over 75 c
Slide 26: Leadership Position in Key Segments Combined with Enhanced Presence in Attractive Growing Categories
Leadership Position in Key Segments Combined with Enhanced Presence in Attractive Growing Categories Source: Nielsen 2019-2021 Dollar and Volume CAGR for Key Produce Categories & Perimeter Departments in U.S. Note: Bananas and Pineapples leadership figures are Dole estimated Latin sourced fruit (inc
Slide 27: Global Reach & Resources
Global Reach & Resources Global Facilities 254 Northern Europe 89 Marketplace Operations CZECH REP. SLOV FRANC AKIA E Ripening North Centres America Rest of 34 World 9 Global footprint Southern INDI A enables diversified 13 Europe 23 sourcing, improves customer fulfilment Salads and reduces risk Pla
Slide 28: Strategic Asset Base
Strategic Asset Base • Highly valuable strategic asset base, including over 250 facilities • Over 114,000 acres of owned farms and other land ~160 ~75 Distribution holdings Packing and Houses Manufacturing Facilities • Owned acreage combined with a multi-continental 12 sourcing model enables operati
Slide 29: Divisional Overview
Divisional Overview DIVERSIFIED DIVERSIFIED FRESH FRESH PRODUCE – FRESH FRESH PRODUCE - FRUIT EMEA AMERICAS & ROW VEGETABLES #1 in North America and #2 in Strong network of 100+ sales, Extensive sales and marketing A leader in Fresh Packed Europe for conventional and capabilities throughout the Vege
Slide 30: Best-in-Class Executive Management
Best-in-Class Executive Management Management team supported by a global Years of Produce base of over 38,500 Experience employees across 29 countries 42 34 22 38 12 26 Carl McCann Rory Byrne Johan Lindén Frank Davis Jared Gale Jacinta Devine Chairman CEO COO CFO Chief Legal Officer Company Secretar
Slide 31: Multi-Faceted Strategy for Sustainable Long-Term Growth
Multi-Faceted Strategy for Sustainable Long-Term Growth Continue to focus on synergistic Expand market M&A in a penetration across fragmented and global footprint – “Grow the Core” growing market Grow Expand market share presence in faster from continued growing categories: product innovation Avocad
Slide 32: Significant Synergy Potential
Significant Synergy Potential PRODUCTS REGIONS SOURCING LOGISTICS Accelerated strategic Increased collaboration Collaborative sourcing from Increased collaboration development of high growth between Total Produce and key production regions in across inland freight and products such as Avocados, Dole
Slide 33: Continuous Deep Commitment to Sustainability
Continuous Deep Commitment to Sustainability ENVIRONMENTAL ETHICAL & SOCIAL ECONOMIC Energy Water & soil Waste Nutrition Our Communities people Food safety Risk management Reduce, Remove, Promotion, Nurture & Investment, Reduction & Recycle & Reduce & Sponsorship & Develop Support & Structure Strate
Slide 34: Sustainability Integration
Sustainability Integration • Dole plc will finalize a new combined set of goals, framework and materiality assessment during the first Lowest Ecological Footprint(1) half of FY’22 • Dole plc will disclose its emissions as a combined entity to CDP for the first time in 2022 Lowest Water • Data will i
Slide 35: Appendix II: Additional Financial Information
Appendix II Additional Financial Information
Slide 36: Pro-Forma Revenue
Pro-Forma Revenue $’m Q1 Q2 Q3 Q4 FY 2021 744 779 673 681 2,877 Fresh Fruit 2020 764 713 682 637 2,796 Diversified Fresh Produce – 2021 794 952 877 815 3,438 EMEA 2020 743 852 886 782 3,263 Diversified Fresh Produce – 2021 422 424 454 480 1,780 Americas & ROW 2020 382 417 438 476 1,713 2021 328 332
Slide 37: Pro-Forma Adjusted EBITDA
Pro-Forma Adjusted EBITDA $’m Q1 Q2 Q3 Q4 FY 2021 91.6 85.7 17.0 15.7 210.0 Fresh Fruit 2020 61.5 55.5 38.2 17.5 172.7 Diversified Fresh Produce – 2021 24.9 41.0 35.9 29.4 131.1 EMEA 2020 14.7 29.1 33.1 28.8 105.7 Diversified Fresh Produce – 2021 10.1 18.1 4.3 20.6 53.1 Americas & ROW 2020 13.0 16.8
Slide 38: Net Debt and Financial Leverage
Net Debt and Financial Leverage $’m FY’21 Cash and cash equivalents (250.5) Bank overdrafts 9.4 Notes payable and current portion of long-term debt, net 51.8 Long-term debt, net 1,297.8 1,108.4 Less: Debt discounts and debt issuance costs 21.1 Net Debt 1,129.5 Pro-Forma Adjusted EBITDA 393.6 Net Deb
Slide 39: Condensed Balance Sheet (unaudited)
Condensed Balance Sheet (unaudited) 31-Dec-21 31-Dec-20 ASSETS (U.S. Dollars in thousands) Cash and cash equivalents 250,561 160,503 Trade receivables, net of allowances 719,114 365,937 Grower advance receivables, net of allowances 72,350 18,946 Other receivables, net of allowances 125,908 24,324 In
Slide 40: Appendix III: Reconciliation of Non-GAAP Financial Measures
Appendix III Reconciliation of Non-GAAP Financial Measures to Related GAAP Measures
Slide 41: Non-GAAP Measures
Non-GAAP Measures Dole plc’s results are determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). In addition to its results under GAAP, in this Press Release we also present Dole plc’s Adjusted EBITDA, pro-forma EBIT, pro-forma Adjusted EBITDA, pro-forma Adjusted net in
Slide 42: Non-GAAP Measures (continued)
Non-GAAP Measures (continued) Pro-forma Adjusted Earnings per Share is calculated from pro-forma Adjusted Net Income attributable to Dole plc divided by diluted weighted average number of shares in the applicable period. However, pro-forma EBIT before discontinued operations, Adjusted EBITDA, pro-fo
Slide 43: Pro-Forma Adjusted Net Income Reconciliation
Pro-Forma Adjusted Net Income Reconciliation Reconciliation from Pro-forma Net Income to Pro-forma Adjusted Net Income – for the quarters ended December 31, 2021 and 2020 Quarter Ended December 31, 2021 December 31, 2020 (U.S. Dollars in thousands) Profit (loss) for the financial year attributable t
Slide 44: Pro-Forma Adjusted Net Income Reconciliation
Pro-Forma Adjusted Net Income Reconciliation Reconciliation from Pro-forma Net Income to Pro-forma Adjusted Net Income – for the years ended December 31, 2021 and 2020 Year Ended December 31, 2021 December 31, 2020 (U.S. Dollars in thousands) Profit for the financial year attributable to equity shar
Slide 45: Pro-Forma Adjusted EBITDA Reconciliation
Pro-Forma Adjusted EBITDA Reconciliation Reconciliation from Pro-forma Net Income to Pro-forma Adjusted EBITDA – for the quarters ended December 31, 2021 and 2020 Quarter Ended December 31, 2021 December 31, 2020 (U.S. Dollars in thousands) Net income 497 3,398 Interest expense from continuing opera
Slide 46: Pro-Forma Adjusted EBITDA Reconciliation
Pro-Forma Adjusted EBITDA Reconciliation Reconciliation from Pro-forma Net Income to Pro-forma Adjusted EBITDA – for the years ended December 31, 2021 and 2020 Year Ended December 31, 2021 December 31, 2020 (U.S. Dollars in thousands) Net income 177,551 29,185 Loss from discontinued operations, net
Slide 47: Appendix IV: Reconciliation from Reported to Pro-Forma
Appendix IV Reconciliation from Reported to Pro-Forma Financial Information
Slide 48: Reported Segment Revenue (unaudited)
Reported Segment Revenue (unaudited) Year Ended 31-Dec-21 31-Dec-20 (U.S. Dollars in thousands) Revenue: Fresh Fruit 1,133,038 - Diversified Fresh Produce - EMEA 3,383,009 3,119,746 Diversified Fresh Produce - Americas & ROW 1,465,025 1,226,193 Fresh Vegetables 510,687 - Total segment Revenue 6,491,
Slide 49: Reported Segment Adjusted EBITDA (unaudited)
Reported Segment Adjusted EBITDA (unaudited) Year Ended 31-Dec-21 31-Dec-20 Segment Adjusted EBITDA: (U.S. Dollars in thousands) Fresh Fruit 26,965 - Diversified Fresh Produce - EMEA 128,098 105,089 Diversified Fresh Produce - Americas & ROW 41,737 32,335 Fresh Vegetables (27) - Legacy Dole 93,353 1
Slide 50: Financial Statements to Pro-Forma Reconciliation
Financial Statements to Pro-Forma Reconciliation Reconciliation from Statutory Reported Revenue to Pro-Forma Revenue Q4 2021 Q4 2020 FY 2021 FY 2020 Unaudited (U.S. Dollars in thousands) Revenue per Financial Statements of Dole plc 2,251,480 1,054,655 6,454,402 4,345,939 Incremental revenue of 100%