Dole Plc · NYSE:DOLE
Dole — Q3 2023 Earnings Presentation
29 slides from Dole's earnings presentation, Nov 16, 2023
Slide 1: Third Quarter 2023 Results
Third Quarter 2023 RE SULTS
Slide 2: Disclaimer
Disclaimer Today’s presentation includes forward-looking statements that reflect Dole plc’s current views statement to reflect events or circumstances after the date on which such statement is made with respect to future events, financial performance, expected synergies and industry except as requir
Slide 3: Agenda
Agenda 01 Q3’23 Highlights 02 Operational Review 03 Financial Review 04 FY’23 Outlook 05 Q&A 06 Appendix QUARTER 3 RESULTS 2023 3
Slide 4: Speakers Today
Speakers Today Rory Byrne Johan Lindén Jacinta Devine CEO COO CFO QUARTER 3 RESULTS 2023 4
Slide 5: Q3'23 Highlights
Q3’23 HIGHLIGHTS
Slide 6: Q3'23 Highlights
Q3’23 Highlights Revenue – Continuing Operations (1) ▪ Strong results delivered in Q3'23 driven by growth in Diversified Fresh Produce segments Q3'23 Q3'22 Variance Variance LFL ▪ Revenue +4.2% and +1.2% on a LFL basis (3) $2.0bn $2.0bn 4.2% 1.2% Adjusted EBITDA (2) – Continuing Operations ▪ Adjuste
Slide 7: Operational Review
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Slide 8: Operational Review Q3'23
Operational Review Q3'23 Fresh Fruit Diversified Fresh Produce Fresh Vegetables Continued good performance in Q3 EMEA On January 31, 2023, we announced an agreement to sell the division to Fresh European operations continue to benefit Continued strong momentum in Q3 with strong Express for gross pro
Slide 9: Financial Review
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Slide 10: Group Results
Group Results Q3'23 Q3'22 YTD’23 YTD’22 Revenue – continuing operations - $’m 2,043 1,961 6,173 5,982 Income from continuing operations - $’m 55.7 58.3 154.4 146.5 Net Income - $’m 54.0 46.6 126.8 98.4 Net Income attributable to Dole plc - $’m 45.3 39.8 101.7 79.7 Diluted EPS from continuing operati
Slide 11: Segment Results – Continuing Operations
Segment Results – Continuing Operations $’m Q3'23 Q3'22 YTD’23 YTD’22 Adjusted Adjusted Adjusted Adjusted Revenue Revenue Revenue Revenue EBITDA EBITDA EBITDA EBITDA Fresh Fruit 749 45.1 751 49.4 2,387 180.1 2,307 166.1 Diversified Fresh Produce – EMEA 856 34.9 760 30.7 2,570 101.0 2,401 88.4 Divers
Slide 12: Fresh Fruit
Fresh Fruit REVENUE $’M Q3'23 REVIEW (0.3%) ▪ 0.3% decrease in revenue 751 749 YoY ▪ Decrease driven by lower banana prices in North America, partially offset by stronger banana pricing in Europe, higher worldwide volumes of bananas sold, Q3'22 Q3'23 and an increase in worldwide pricing of pineapple
Slide 13: Diversified Fresh Produce EMEA
Diversified Fresh Produce EMEA REVENUE $’M -8.5% Q3'23 REVIEW +12.7% YoY -13.4% ▪ 12.7% increase in revenue primarily driven by a 856 favorable impact from foreign currency translation of 760 +4.8% $54.4 million and price increases across the segment LFL (3) Q3'22 Q3'23 ▪ On a LFL basis (3), revenue
Slide 14: Diversified Fresh Produce Americas & ROW
Diversified Fresh Produce AMERICAS & ROW REVENUE $’M Q3'23 REVIEW (2.0%) ▪ 2.0% decrease in revenue 480 470 YoY ▪ Decrease driven primarily by lower revenue for berries in North America, as well as lower volumes of most Q3'22 Q3'23 other commodities, partially offset by inflation-justified price inc
Slide 15: Capital Allocation and Leverage
Capital Allocation and Leverage FREE CASH FLOW – CONTINUING OPERATIONS (4) CAPEX Q3’23: $15.7m Continuing Operations YTD’23: $51.3m $’m YTD’23 YTD’22 Net cash provided by operating activities (GAAP) 157.1 183.1 Capital expenditures – continuing operations (51.3) (58.6) Free cash flow – continuing op
Slide 16: FY'23 Outlook & Strategic Priorities
FY’23 OUTLOOK & Strategic Priorities
Slide 17: FY'23 Outlook
FY’23 Outlook FY’23 Adjusted EBITDA – continuing operations Target: $365m Capital Expenditure – continuing operations ~ $85m 15.7917 in Interest Expense ~ $90m QUARTER 3 RESULTS 2023 17
Slide 18: FY'23 Strategic Priorities
FY’23 Strategic Priorities Efficiently Exiting the Maintain Continuing our focus on expanding managing our Fresh disciplined our presence in fast growing operating costs Vegetables approach to categories such as berries, avocados in a high business capital and organic produce inflation allocation en
Slide 19: Q&A
Q&A
Slide 20: Appendix I: Non-GAAP Measures and Reconciliations
APPENDIX I Non-GAAP Measures and Reconciliations
Slide 21: Non-GAAP Measures
Non-GAAP Measures Dole plc’s results are determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). loss on the disposal of business interests, adding the incremental costs from the fair value uplift for biological assets related to the acquisition of Legacy Dole, subtract
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation RECONCILIATION FROM NET INCOME TO ADJUSTED EBITDA - UNAUDITED Three Months Ended Nine Months Ended Sep 30, 2023 Sep 30, 2022 Sep 30, 2023 Sep 30, 2022 (U.S. Dollars in thousands) Net income (Reported GAAP) $53,985 $46,580 $126,775 $98,394 Loss from discontinued operati
Slide 23: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation RECONCILIATION FROM NET INCOME ATTRIBUTABLE TO DOLE PLC SHAREHOLDERS TO ADJUSTED NET INCOME – UNAUDITED Three Months Ended Nine Months Ended Sep 30, 2023 Sep 30, 2022 Sep 30, 2023 Sep 30, 2022 (U.S. Dollars in thousands, except per share amounts) Net income attribu
Slide 24: Like for Like Analysis – Q3'23
Like for Like Analysis – Q3'23 Revenue for the Three Months Ended Impact of Foreign Impact of Like-for-like Sep 30, 2022 Currency Acquisitions and Increase Sep 30, 2023 Translation Divestitures (Decrease) (U.S. Dollars in millions) Fresh Fruit $751 $ - $ - ($2) $749 Diversified Fresh Produce - EMEA
Slide 25: Like for Like Analysis – YTD'23
Like for Like Analysis – YTD'23 Revenue for the Nine Months Ended Impact of Foreign Impact of Like-for-like Sep 30, 2022 Currency Acquisitions and Increase Sep 30, 2023 Translation Divestitures (Decrease) (U.S. Dollars in millions) Fresh Fruit $2,307 $ - $ - $80 $2,387 Diversified Fresh Produce - EM
Slide 26: Reconciliation of Adjusted EBITDA to Net Debt
Reconciliation of Adjusted EBITDA to Net Debt Three Months Ended Nine Months Ended Sep 30, 2023 Sep 30, 2022 Sep 30, 2023 Sep 30, 2022 (U.S. Dollars in millions) Adjusted EBITDA – continuing operations $85.2 $79.2 $308.3 $282.9 EBITDA of equity method investments, net of dividends received (8) (8.8)
Slide 27: Net Debt
Net Debt Sep 30, 2023 (U.S. Dollars in millions) Debt (Reported GAAP) Bank overdrafts (13.8) Current maturities (255.9) Long-term debt, net (859.7) Total debt, net (1,129.4) Less: Debt discounts and debt issuance costs (15.2) Total gross debt (1,144.6) Cash and cash equivalents 217.5 Net Debt (Non-G
Slide 28: Last Twelve Months Adjusted EBITDA
Last Twelve Months Adjusted EBITDA ADJUSTED EBITDA Last Twelve Q1’22 Q2’22 Q3’22 Q4’22 FY’22 Q1’23 Q2’23 Q3’23 Months (U.S. Dollars in millions) Fresh Fruit $60.4 $56.3 $49.4 $39.4 $205.5 $69.2 $65.8 $45.1 $219.6 Diversified Fresh Produce - EMEA 19.3 38.4 30.7 22.7 111.1 23.4 42.6 34.9 123.6 Diversi
Slide 29: Contact: investors@doleplc.com
Contact: investors@doleplc.com