Dole (DOLE) Q4 2024 Earnings Call February 26, 2025 03:27 PM ET Company Participants James O'Regan - Head Of Investor RelationsRory Byrne - CEO & Executive DirectorJacinta Devine - CFO & DirectorChristopher Barnes - VP - Equity Research Conference Call Participants Gary Martin - Equity Research Analyst Operator Welcome to the Doull PLC Fourth Quarter and Full Year twenty twenty four Earnings Conference Call and Webcast. Today's conference is being broadcast live over the Internet and is also being recorded ...

Financial Data and Key Metrics Changes - In 2024, Group revenue increased by 6.7% to $8.5 billion, and adjusted EBITDA also increased by 6.7% to $392 million, exceeding adjusted EBITDA guidance by $12 million [11][7][10] - Adjusted net income for the full year was $120.9 million, with adjusted diluted EPS increasing by 2.4% to $1.27 per share [11][27] - Net debt at the end of 2024 was $637 million, with net leverage at 1.6 times, indicating a strong financial position [12][10] Business Line Data and Key Metrics Changes - Fresh Fruit segment delivered adjusted EBITDA of $214.8 million for the full year, an increase of $5.9 million compared to 2023, driven by volume growth in bananas and plantains [12][13] - Diversified EMEA segment achieved adjusted EBITDA of $131.5 million for the full year, with a like-for-like revenue growth of 4.4% [16][17] - Diversified Fresh Produce Americas segment reported a like-for-like revenue increase of 16.1%, with adjusted EBITDA increasing by 52.3% for the full year [32][33] Market Data and Key Metrics Changes - North America saw good volume growth in bananas and plantains, while the European market experienced high volumes in bananas and lower shipping costs [13][14] - The EMEA segment faced headwinds due to supply challenges and weather events, but anticipates continued revenue growth in 2025 [17][16] - The Fresh Vegetables business showed positive cash flow for the full year, indicating a turnaround despite accounting adjustments [21] Company Strategy and Development Direction - The company is focused on capital allocation and managing invested capital, with strategic investments in expanding shipping capacity and improving operational performance [8][10] - There is an ongoing process to determine the best strategic alternative for the vegetables business, which remains a priority [20][21] - The company plans to maintain a baseline level of capital expenditure in line with depreciation expenses, while exploring development opportunities for future growth [41][70] Management Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025, including the impact of Tropical Storm Sara and geopolitical uncertainties affecting sourcing costs and supply chains [40][41] - The company aims for adjusted EBITDA in the range of $370 million to $380 million for 2025, reflecting a more normalized year compared to 2024 [41][38] - Management remains optimistic about the underlying fundamentals of the business and is focused on navigating challenges while capitalizing on growth opportunities [15][38] Other Important Information - The company declared a dividend of $0.08 for the fourth quarter, to be paid on April 3, 2025 [37] - Free cash flow from continuing operations was $180.3 million for the full year, benefiting from strong adjusted EBITDA performance [36] Q&A Session Summary Question: Can you unpack the EBITDA guidance for 2025? - Management indicated that the guidance reflects known headwinds, including the impact from Tropical Storm Sara and macroeconomic uncertainties, with expectations for a slower start to the year [45][49][54] Question: What mitigation strategies are in place regarding potential tariffs? - Management believes that the demand for fresh produce will remain strong, and they are prepared to adjust pricing and sourcing strategies if tariffs are implemented [56][58][60] Question: What is the focus on capital allocation moving forward? - The company is prioritizing leveraging while also considering targeted M&A opportunities, with ongoing internal development projects aimed at enhancing growth [65][70][72] Question: What are the expectations for the Diversified EMEA segment? - Management noted that while there are some profit weaknesses in certain regions, they see more opportunities than challenges and expect continued growth [75][76] Question: Is there a risk of elasticity in pricing for high-value products like avocados? - Management expressed confidence that the U.S. market will continue to demand these products, despite potential tariff impacts, due to limited domestic production capabilities [78][80]

Exhibit 99.1 Dole plc Reports Fourth Quarter and Full Year 2024 Financial Results DUBLIN – February 26, 2025 - Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three months and year ended December 31, 2024. Highlights for the quarter ended December 31, 2024: Highlights for the year ended December 31, 2024: Financial Highlights - Unaudited Dole plc reports its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") ...

Financial Data and Key Metrics Changes - Group reported revenue increased by 1% and 5.8% on a like-for-like basis [5][12] - Adjusted EBITDA of $82 million was in line with market expectations and 2.3% ahead of the prior year on a like-for-like basis [5] - Net income of $21.5 million in Q3 2024 was $32.5 million lower than Q3 2023, primarily due to a prior year exceptional gain [13] - Adjusted net income was $18 million, with adjusted diluted EPS at $0.19 per share [13] Business Line Data and Key Metrics Changes - Fresh Fruit segment delivered adjusted EBITDA of $42.9 million, a small decrease compared to last year but ahead of expectations [6][14] - Diversified EMEA segment experienced revenue growth of $5.1 million, but adjusted EBITDA declined by 13.1% due to higher one-off IT charges and supply issues [9][15] - Diversified Americas segment reported strong performance with a like-for-like revenue increase of 7.2% and adjusted EBITDA up by $3.6 million [9][16] Market Data and Key Metrics Changes - North America was impacted by drydocking, but overall performance was good with higher volumes of bananas sold [6][7] - European market showed positive momentum driven by higher volumes of bananas and lower shipping costs [7] - Supply conditions for bananas and pineapples remain tight, leading to higher sourcing costs but also positive pricing momentum [7] Company Strategy and Development Direction - Company is focused on capital allocation and managing leverage, with a reduction in leverage to 1.86x [17] - Plans to expand shipping fleet by bringing two chartered vessels under ownership in early 2025, enhancing operational flexibility [8][18] - The company raised its full-year adjusted EBITDA target to at least $380 million for 2024, reflecting confidence in operational performance [20] Management Comments on Operating Environment and Future Outlook - Management noted that the second half of the year may see a heavier weighting towards the first half, with higher shipping costs anticipated [24] - The Diversified Americas business has shown strong performance, benefiting from improved management processes and favorable market conditions [26][27] - Management expects a strong performance in the export side as key export seasons from Peru and Chile commence [9] Other Important Information - Cash capital expenditure from continuing operations was $21.1 million in Q3, with total expected capital expenditure for the year between $130 million to $140 million [18] - A dividend of $0.08 for the third quarter was declared, to be paid on January 3, 2025 [18] Q&A Session Summary Question: Can you walk through the factors affecting EBITDA guidance for Q4? - Management indicated that the fourth quarter may be down 18% at the low end, with higher shipping costs and the sale of Progressive impacting EBITDA [24] Question: How much of the improvement in Diversified Americas is real underlying strength? - Management acknowledged that the segment has benefited from improved conditions and management processes, but some volatility is expected [26][27] Question: Should we expect a more normalized cherry season into Q4? - Management confirmed that Q1 next year could see normalized conditions, with cherry volumes expected to align with the earlier Chinese New Year [30] Question: What are the supply and demand factors driving Fresh Fruit performance? - Management noted strong demand for bananas and tight supply due to weather events, contributing to overall outperformance [32] Question: Can you elaborate on the growth potential from the new vessels? - Management highlighted that the additional capacity will support growth and ensure compliance with service level requirements for major retailers [33]

Q3'24 Results Presentation and and the the state the states HITORIAL PRO THERE Disclaimer Today's presentation includes forward-looking statements that reflect Dole plc's current views with respect to future events, financial performance, expected synergies and industry conditions. These statements are not statements of historical fact. The words "believe," "may," "could," "will," "should," "would," "anticipate," "estimate," "expect," "intend," "objective," "seek," "strive," "target" or similar words, or th ...

Company Performance - Dole reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.20 per share, and down from $0.24 per share a year ago, representing an earnings surprise of -5% [1] - The company posted revenues of $2.06 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.14%, and up from $2.04 billion year-over-year [2] - Over the last four quarters, Dole has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Dole shares have increased approximately 36.5% since the beginning of the year, outperforming the S&P 500's gain of 25.5% [3] - The current status of estimate revisions for Dole is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.10 on revenues of $2.04 billion, and for the current fiscal year, it is $1.21 on revenues of $8.29 billion [7] - The outlook for the Agriculture - Operations industry, where Dole operates, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Revenue Performance - For the three months ended September 30, 2024, net revenues increased by $19.7 million (1.0%) to $2,062.4 million compared to $2,042.7 million in the same period of 2023[165]. - For the nine months ended September 30, 2024, net revenues increased by $134.9 million (2.2%) to $6,307.9 million compared to $6,173.0 million in the same period of 2023[166]. - Total consolidated revenue for the three months ended September 30, 2024, increased by 1.6% to $2.062 billion compared to $2.043 billion for the same period in 2023[198]. - Total consolidated revenue for the nine months ended September 30, 2024, increased by 2.2% to $6.308 billion compared to $6.173 billion for the same period in 2023[198]. - Fresh Fruit segment revenue for the three months ended September 30, 2024, rose by 6.6% or $49.6 million to $798.8 million, driven by higher worldwide volumes and pricing of bananas and pineapples[201]. - Fresh Fruit segment revenue for the nine months ended September 30, 2024, increased by 3.7% or $87.3 million to $2.474 billion, driven by higher worldwide volumes and pricing of bananas and pineapples[203]. - Diversified Fresh Produce – EMEA revenue for the three months ended September 30, 2024, increased by 5.1% or $43.3 million to $899.6 million, aided by strong performance in Ireland, the U.K., and the Netherlands[206]. - Diversified Fresh Produce – EMEA revenue for the nine months ended September 30, 2024, increased by 5.0% or $128.0 million to $2.698 billion, supported by strong performance in Ireland and the U.K.[208]. Income and Expenses - The operating income for the three months ended September 30, 2024, decreased by $29.4 million (38.1%) to $47.7 million compared to $77.1 million in the same period of 2023[165]. - The net income attributable to Dole plc for the three months ended September 30, 2024, decreased by $30.9 million (68.2%) to $14.4 million compared to $45.3 million in the same period of 2023[165]. - The total cost of sales for the three months ended September 30, 2024, increased by $22.1 million (1.2%) to $1,898.4 million compared to $1,876.3 million in the same period of 2023[171]. - Other income (expense), net decreased to an expense of $4.5 million for the three months ended September 30, 2024, primarily due to increased net unrealized losses on foreign currency borrowings[178]. - Income tax expense for the three months ended September 30, 2024 was $15.5 million on $28.4 million of income, reflecting a 54.8% effective tax rate, compared to a 20.6% effective tax rate in the prior year[181]. - Net income attributable to noncontrolling interests decreased to $10.4 million for the nine months ended September 30, 2024, down from $25.0 million in the prior year, primarily due to goodwill impairment and the sale of the Progressive Produce business[191]. Adjusted EBITDA - Total consolidated Adjusted EBITDA for the three months ended September 30, 2024, decreased by 3.1% or $3.1 million to $82.1 million compared to $85.2 million in the prior year[200]. - Fresh Fruit Adjusted EBITDA for the three months ended September 30, 2024, decreased by 4.9% or $2.2 million to $42.9 million, primarily due to higher shipping costs and lower volumes of pineapples sold[202]. - Diversified Fresh Produce – EMEA Adjusted EBITDA for the three months ended September 30, 2024, decreased by 13.1% or $4.6 million to $30.4 million, impacted by higher one-off IT charges and lower supply of certain categories[207]. - Total consolidated Adjusted EBITDA for the nine months ended September 30, 2024, increased by 3.5% or $9.3 million to $317.6 million compared to $308.3 million in the prior year[200]. - Diversified Fresh Produce – EMEA Adjusted EBITDA decreased by 1.9% ($1.9 million) to $99.0 million, primarily due to declines in the Netherlands and the U.K., partially offset by strong performance in the Nordics and South Africa[209]. - Adjusted EBITDA for Diversified Fresh Produce – Americas & ROW increased by 70.7% ($3.6 million) to $8.8 million, driven by improved performance in North American berries and avocados[211]. - Adjusted EBITDA for the nine months ended September 30, 2024, increased by 31.0% ($8.4 million) to $35.6 million, driven by seasonal timing differences and strong performance in North American commodities[214]. Cash Flow and Liquidity - Cash flow from operating activities was $106.2 million for the nine months ended September 30, 2024, down from $157.1 million in the prior year, attributed to seasonal impacts and higher outflows from receivables and inventories[217]. - Cash flows provided by investing activities increased to $60.7 million for the nine months ended September 30, 2024, primarily due to proceeds from the sale of the Progressive Produce business[218]. - Cash used in financing activities increased to $198.8 million for the nine months ended September 30, 2024, mainly due to higher debt repayments[219]. - Total available liquidity as of September 30, 2024, was $1.02 billion, compared to $997.1 million as of December 31, 2023[229]. - Net debt decreased to $731.98 million as of September 30, 2024, from $818.26 million as of December 31, 2023[224]. Strategic Changes - The sale of the Progressive Produce business resulted in gross proceeds of $120.3 million and a gain of $75.9 million for the nine months ended September 30, 2024[158]. - The Fresh Vegetables division is classified as held for sale, representing a strategic shift that will materially affect the company's operations and results[155]. - Goodwill impairment of $36.7 million was recognized for the nine months ended September 30, 2024, following the completion of the Progressive Transaction[177]. - The company continues to face inflationary pressures and increased shipping costs, impacting overall performance[166].

Core Insights - Dole (DOLE) is currently rated as a 1 (Strong Buy) by Zacks, while Limoneira (LMNR) holds a 3 (Hold) rating, indicating a stronger earnings outlook for DOLE compared to LMNR [3] - Value investors utilize various valuation metrics to assess whether a stock is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - DOLE has a forward P/E ratio of 12.90, significantly lower than LMNR's forward P/E of 95.06, suggesting that DOLE is more attractively priced [5] - The PEG ratio for DOLE is 2.52, while LMNR's PEG ratio is 6.34, indicating that DOLE's expected earnings growth is more favorable relative to its price [5] - DOLE's P/B ratio stands at 1, compared to LMNR's P/B of 2.42, further supporting the argument that DOLE is undervalued [6] Investment Recommendation - Based on the Zacks Rank and Style Scores, DOLE is positioned as a more attractive option for value investors compared to LMNR, with a Value grade of A for DOLE and D for LMNR [6]

Core Insights - The article compares Dole (DOLE) and Limoneira (LMNR) to determine which stock presents a better undervalued investment opportunity [1] Valuation Metrics - Dole has a forward P/E ratio of 13.87, while Limoneira has a significantly higher forward P/E of 96.80 [5] - Dole's PEG ratio is 2.71, indicating a more favorable expected EPS growth rate compared to Limoneira's PEG ratio of 6.45 [5] - Dole's P/B ratio stands at 1.08, contrasting with Limoneira's P/B ratio of 2.46, suggesting Dole is more aligned with its book value [6] - These metrics contribute to Dole's Value grade of A and Limoneira's Value grade of D [6] Earnings Outlook - Dole currently has a Zacks Rank of 1 (Strong Buy), indicating an improving earnings outlook, while Limoneira has a Zacks Rank of 3 (Hold) [3][7]

Group 1 - Dole (DOLE) has shown strong year-to-date performance, returning approximately 36.2%, significantly outperforming the average gain of 9.4% in the Consumer Staples sector [4] - Dole is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a positive earnings outlook with a 5.3% increase in the consensus estimate for full-year earnings over the past 90 days [3] - The Agriculture - Operations industry, to which Dole belongs, has seen an average loss of 8.5% this year, highlighting Dole's superior performance within its industry [5] Group 2 - Lifeway Foods (LWAY) is another strong performer in the Consumer Staples sector, with a year-to-date return of 66.4% and a Zacks Rank of 1 (Strong Buy) [4][5] - The consensus EPS estimate for Lifeway Foods has increased by 23.8% over the past three months, reflecting positive analyst sentiment [5] - The Food - Dairy Products industry, which includes Lifeway Foods, has experienced a decline of 2% year-to-date, contrasting with Dole's performance [6]