Dole PLC Q2 2025 Earnings Call Highlights: Revenue Growth Amid Operational Challenges

Dole PLC reported a 14.3% increase in group revenue to $2.4 billion for Q2 2025, with adjusted EBITDA up 9.3% to $137 million. The sale of the Fresh Vegetable division was completed, and the Diversified Fresh Produce segments showed strong growth. However, higher sourcing costs due to tropical storm Sara and shipping costs impacted growth, and net income was affected by a $35 million loss in discontinued operations and an unrealized foreign currency loss of $19.1 million. Free cash flow from continuing operations was an outflow of $1 million.

Dole PLC (NYSE: DOLE) reported a robust performance for the second quarter of 2025, with a 14.3% increase in group revenue to $2.4 billion. The company's adjusted EBITDA also showed a 9.3% growth, reaching $137 million. The sale of the Fresh Vegetables division to Arbor Capital Partners was completed, allowing Dole to refocus on its core business activities. The Diversified Fresh Produce segments, particularly the EMEA segment, demonstrated strong growth, with adjusted EBITDA increasing by 15%.

However, the company faced several challenges that impacted its financial performance. Higher sourcing costs due to tropical storm Sara and a tight sourcing market affected growth in adjusted EBITDA. Additionally, the company incurred higher shipping costs due to logistical complexities and temporary vessel operational issues. These factors, along with a $35 million loss in discontinued operations primarily related to the Fresh Vegetables division, and an unrealized foreign currency loss of $19.1 million, led to a decrease in net income. Free cash flow from continuing operations was an outflow of $1 million for the quarter, with net debt increasing to $789 million.

Despite these challenges, Dole declared a dividend of $0.085 per share, payable on October 6, reflecting confidence in its financial position. The company's CEO, Rory Byrne, highlighted the impact of tropical storm Sara and weather issues in Central America on sourcing costs, and the volatility in international trade and tariffs. He also mentioned that the company is taking a conservative view on guidance due to these supply issues, particularly affecting Q3.

Dole's peers in the perishable food segment have reported mixed results. Vital Farms delivered 25.4% YoY revenue growth, while Fresh Del Monte Produce reported a 3.8% increase. Dole's share price has been relatively resilient, rising 1.6% in the last month, with an average analyst price target of $16.67.

Investors should closely monitor Dole's earnings report, as guidance can significantly influence stock price movements. The company's ability to meet or exceed expectations will be a key factor in determining the immediate impact on its stock price.

References:
[1] https://finance.yahoo.com/news/dole-plc-dole-q2-2025-070300002.html
[2] https://finance.yahoo.com/news/dole-plc-dole-q2-2025-132120632.html
[3] https://www.ainvest.com/news/dole-earnings-expect-dole-2508/
[4] https://www.freshplaza.com/north-america/article/9754936/dole-revenue-increases-by-14-3-loss-in-fresh-vegetables-division-causes-decreased-net-income/