Dole PLC (NYSE:DOLE) reported first-quarter FY24 sales growth of 6.6% year-on-year to $2.12 billion, meeting the analyst consensus estimate.
The revenue increase is due to strong operational performance across all segments and a $12.8 million favorable impact of foreign currency translation.
Fresh Fruit revenue increased 3.2%, primarily due to higher worldwide volumes of bananas and pineapples sold and an increase in pineapple pricing, offset in part by lower worldwide pricing for bananas.
Gross profit for the quarter rose 8.7% to $194.7 million with a margin of 9.2%. Adjusted EBITDA for the quarter increased 9.7% to $110.1 million. Adjusted EPS of $0.43 beat the consensus estimate of $0.31.
The company held ~$245 million in cash and equivalents as of March-end. Cash capital expenditures from continuing operations were $18.2 million.
The company completed the sale of a 65% equity stake in Progressive Produce in the quarter, which generated gross proceeds of $120.3 million and a gain of $74.0 million.
On May 14, 2024, the Board of Directors of Dole plc declared a cash dividend for the first quarter of 2024 of $0.08 per share, payable on July 5 to shareholders of record on June 12.
Outlook: Dole maintained its target to deliver full-year Adjusted EBITDA in line with 2023 on a like-for-like basis. Adjusting for the disposal of Progressive Produce, this implies an Adjusted EBITDA target of at least $360 million.
Price Action: DOLE shares are trading higher by 3.18% at $12.65 at the last check Wednesday.
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