Dole's Q4 2024: Navigating Contradictions in EBITDA Guidance, Tariff Impacts, and EMEA Performance

These are the key contradictions discussed in Dole's latest 2024Q4 earnings call, specifically including: EBITDA guidance and expectations, tariff impact expectations, and the resilience of the EMEA division:



Record Financial Performance:
- Dole plc reported group revenue of $8.5 billion for the full year 2024, up 6.7% year-on-year, with adjusted EBITDA increasing by 6.7% to $392 million.
- The growth was driven by strong performance in Diversified Fresh Produce Americas and the Fresh Food segment, offset by a slight decline in Diversified Fresh Produce EMEA.

Operational Highlights in Fresh Fruit Segment:
- The Fresh Fruit segment delivered $214.8 million in adjusted EBITDA for the full year, exceeding expectations with a year-end close of $31.9 million in Q4 2024.
- Growth was driven by volume increases in bananas and plantains in North America and high volumes in bananas in Europe, despite challenges like shipping costs and Tropical Storm Sara.

Diversified Americas Segment Performance:
- The Diversified Americas segment showed a significant increase in adjusted EBITDA of $22.3 million for the full year, excluding the Progressive Produce disposal.
- The performance was fueled by strong export business growth and increased revenue from kiwi, grapes, and avocados in North America.

Capital Allocation and Leverage Reduction:
- Dole plc reduced its net debt by over $180 million in 2024, ending the year with $637 million and a net leverage of 1.6x.
- This was achieved through strategic capital allocation, including debt repayment from the sale of Progressive Produce and disciplined capital investments in shipping fleet expansion.