Dole's Q1 2025: Navigating Contradictions in EBITDA Guidance, Fresh Vegetables Strategy, and Capital Allocation

EBITDA guidance and macroeconomic challenges, fresh vegetables segment and strategic outcome, capital allocation and strategic focus, and fresh vegetables business strategy are the key contradictions discussed in Dole's latest 2025Q1 earnings call.



Strong Revenue Growth and EBITDA Guidance Increase:
- Dole plc reported [group revenue] of $2.1 billion in Q1 2025, with a [4.2% increase] on a like-for-like basis.
- Adjusted EBITDA is expected to reach at least [$380 million] for the full year, reflecting better performance in Q1 and potential foreign exchange translation tailwinds.
- The increase in guidance is attributed to a strong Q1 performance despite tropical storm Sarah headwinds and improved outlook.

Diversified Fresh Produce Performance:
- The [Diversified EMEA segment] delivered [adjusted EBITDA] of [$27.7 million] in Q1 2025, with a [9.4% increase] on a like-for-like basis.
- This growth was driven by strong performance in the UK, Spain, and the Netherlands, partially offset by currency and M&A impacts.
- The segment benefited from diversification, improved delivery quality, and cost reductions in value-added businesses.

Fresh Fruit Segment Challenges and Recovery:
- Fresh fruit adjusted EBITDA was [$63.3 million], exceeding expectations despite the impact of tropical storm Sarah.
- Challenges included higher sourcing and shipping costs, but the segment is expected to recover gradually, returning to near full production by early 2026.
- The expected recovery is due to proactive management by production and sourcing teams, focusing on reinvestment and rehabilitation.

Capital Allocation and Strategic Investments:
- Dole plc successfully refinanced its corporate credit facilities with a $1.2 billion new syndicated credit package.
- The company plans to maintain dividend growth, invest in internal development projects, and explore external acquisition opportunities.
- The refinancing provides financial flexibility, supporting strategic initiatives and future growth opportunities.