Dole plc Reports Second Quarter 2024 Financial Results

Aug 14, 2024

Dole plc (NYSE: DOLE) ("Dole" or the "Group" or the "Company") today released its financial results for the three and six months ended June 30, 2024.

Highlights for the three months ended June 30, 2024:

Strong second quarter Group results with growth across all segments on a like-for-like basis¹
Revenue of $2.1 billion, a decrease of 0.8%. On a like-for-like basis, revenue increased 4.3%
Net Income of $88.1 million, an increase of 68.4%
Adjusted EBITDA² of $125.4 million, an increase of 2.2%. On a like-for-like basis, Adjusted EBITDA increased 8.2%
Adjusted Net Income of $47.0 million and Adjusted Diluted EPS of $0.49

Financial Highlights - Unaudited

	Three Months Ended		Six Months Ended
	June 30, 2024	June 30, 2023	June 30, 2024	June 30, 2023

	(U.S. Dollars in millions, except per share amounts)
Revenue	2,124	2,141	4,245	4,130
Income from continuing operations³	56.0	63.7	127.5	98.7
Net Income	88.1	52.3	153.5	72.8
Net Income attributable to Dole plc	80.1	42.3	150.3	56.4
Diluted EPS from continuing operations	0.50	0.56	1.30	0.86
Diluted EPS	0.84	0.44	1.57	0.59
Adjusted EBITDA²	125.4	122.7	235.5	223.1
Adjusted Net Income²	47.0	48.4	87.6	80.7
Adjusted Diluted EPS²	0.49	0.51	0.92	0.85

_______________________
¹		Like-for-like basis refers to the measure excluding the impact of foreign currency translation movements and acquisitions and divestitures.
²		Dole plc reports its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). See full GAAP financial results in the appendix. Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share, Net Debt and Free Cash Flow from Continuing Operations are non-GAAP financial measures. Refer to the appendix of this release for an explanation and reconciliation of these and other non-GAAP financial measures used in this release to comparable GAAP financial measures.
³		Fresh Vegetables results are reported separately as discontinued operations, net of income taxes, in our condensed consolidated statements of operations, its assets and liabilities are separately presented in our condensed consolidated balance sheets, and its cash flows are presented separately in our condensed consolidated statements of cash flows for all periods presented. Unless otherwise noted, our discussion of our results included herein, outlook and all supplementary tables, including non-GAAP financial measures, are presented on a continuing operations basis.

Commenting on the results, Carl McCann, Executive Chairman, said:

"We are pleased to report another strong result for the second quarter of 2024, with Adjusted EBITDA increasing 2.2% to $125.4 million and 8.2% on a like-for-like basis.

Following the completion of our sale of Progressive Produce, we repaid $100 million of our Term Loan facilities in April, and at the end of the quarter, our Net Debt was $767.5 million.

Our strong first half of the year, and positive momentum within the business, positions us well to deliver a good result for the 2024 financial year. Today, we are pleased to raise our full year Adjusted EBITDA target to at least $370.0 million."

Group Results - Second Quarter

Revenue decreased 0.8%, or $17.1 million, primarily due to a net negative impact from acquisitions and divestitures of $100.3 million and a $9.6 million net unfavorable impact of foreign currency translation. On a like-for-like basis, revenue was 4.3%, or $92.8 million, ahead of prior year, due to strong operational performance across all segments.

Net Income increased 68.4% or $35.8 million, due to strong trading results across the Group.

Adjusted EBITDA increased 2.2%, or $2.7 million, primarily driven by strong performance in the Fresh Fruit segment. On a like-for-like basis, Adjusted EBITDA increased 8.2%, or $10.1 million.

Adjusted Net Income decreased $1.3 million, predominantly due to higher tax expense, partially offset by the increases in Adjusted EBITDA noted above. Adjusted Diluted EPS for the three months ended June 30, 2024 was $0.49 compared to $0.51 in the prior year.

Selected Segmental Financial Information (Unaudited)

	Three Months Ended
	June 30, 2024					June 30, 2023

	(U.S. Dollars in thousands)
	Revenue			Adjusted EBITDA		Revenue			Adjusted EBITDA
Fresh Fruit	$	851,451		$	70,619	$	839,043		$	65,816
Diversified Fresh Produce - EMEA		944,851			42,695		915,629			42,603
Diversified Fresh Produce - Americas & ROW		356,057			12,107		417,645			14,262
Intersegment		(28,268	)		—		(31,143	)		—
Total	$	2,124,091		$	125,421	$	2,141,174		$	122,681


	Six Months Ended
	June 30, 2024					June 30, 2023

	(U.S. Dollars in thousands)
	Revenue			Adjusted EBITDA		Revenue			Adjusted EBITDA
Fresh Fruit	$	1,675,680		$	140,054	$	1,637,953		$	135,027
Diversified Fresh Produce - EMEA		1,798,449			68,654		1,713,729			66,009
Diversified Fresh Produce - Americas & ROW		832,939			26,812		840,396			22,032
Intersegment		(61,603	)		—		(61,737	)		—
Total	$	4,245,465		$	235,520	$	4,130,341		$	223,068

Fresh Fruit

Revenue increased 1.5%, or $12.4 million, primarily due to higher volumes of bananas in Europe and North America, higher worldwide pricing of bananas and higher volume of plantains sold, partially offset by lower volumes and pricing for pineapples.

Adjusted EBITDA increased 7.3%, or $4.8 million, driven by higher revenue and lower fruit sourcing costs, partially offset by higher shipping costs.

Diversified Fresh Produce – EMEA

Revenue increased 3.2%, or $29.2 million, primarily due to strong performance in Ireland, the U.K. and Spain, as well as an incremental positive impact from acquisitions of $7.8 million, partially offset by a $8.7 million unfavorable impact from foreign currency translation. On a like-for-like basis, revenue was 3.3%, or $30.2 million, ahead of prior year.

Adjusted EBITDA increased 0.2%, or $0.1 million, primarily driven by strong performance in the Nordics, Spain and South Africa, as well as a positive impact of $0.3 million from acquisitions, offset primarily by a $0.3 million unfavorable impact from foreign currency translation. On a like-for-like basis, Adjusted EBITDA was 0.3%, or $0.1 million, ahead of prior year.

Diversified Fresh Produce – Americas & ROW

Revenue decreased 14.7%, or $61.6 million, primarily due to the disposal of the Progressive Produce business in mid-March 2024. On a like-for-like basis, revenue was 11.3%, or $47.4 million, ahead of the prior year, primarily due to seasonal timing benefits as well as positive underlying revenue growth in most commodities in North America.

Adjusted EBITDA decreased 15.1%, or $2.2 million, primarily driven by the disposal of the Progressive Produce business. On a like-for-like basis, Adjusted EBITDA was 36.4%, or $5.2 million, ahead of the prior year, primarily due to improved performance in our North American diversified business and the benefit of continued seasonal timing differences in South America.

Capital Expenditures

Cash capital expenditures from continuing operations for the six months ended June 30, 2024 were $35.7 million, which included investments in shipping containers, farming investments, efficiency projects in our warehouses and ongoing investments in IT and logistics assets. Additions through finance leases from continuing operations were $7.0 million for the six months ended June 30, 2024.

Sale of Progressive Produce

On March 13, 2024, the Company completed the sale of its 65.0% equity interest in the Progressive Produce business to PTF Holdings. As a result of the sale, Dole received gross proceeds of $120.3 million in cash and recognized a gain on the sale of $75.9 million. On April 25, 2024, Dole voluntarily prepaid $100.0 million of its Term Loan facilities with proceeds from the sale of Progressive Produce.

Free Cash Flow from Continuing Operations and Net Debt

Free cash flow from continuing operations was an outflow of $30.4 million for the six months ended June 30, 2024. Free cash flow was primarily driven by normal seasonal impacts. There were higher outflows from receivables based on higher revenues (excluding the impact of divestitures) and timing of collections and lower inflows from inventories, partly offset by inflows from accounts payables, accrued liabilities and other liabilities. Net Debt as of June 30, 2024 was $767.5 million.

Outlook for Fiscal Year 2024 (forward-looking statement)

We are very pleased that we have consolidated our strong start to the year with another very good performance in the second quarter, putting us in an excellent position to deliver a strong result for the full year.

While forecasting remains complex, our first half result gives us confidence to raise our full year Adjusted EBITDA target to at least $370.0 million for 2024.

For financial year 2024, we are maintaining our previously issued guidance for both capital expenditure from continuing operations and interest expense.

Dividend

On August 13, 2024, the Board of Directors of Dole plc declared a cash dividend for the second quarter of 2024 of $0.08 per share, payable on October 3, 2024 to shareholders of record on September 11, 2024. A cash dividend of $0.08 per share was paid on July 5, 2024 for the first quarter of 2024.

About Dole plc

A global leader in fresh produce, Dole plc produces, markets, and distributes an extensive variety of fresh fruits and vegetables sourced locally and from around the world. Dedicated and passionate in exceeding our customers’ requirements in over 75 countries, our goal is to make the world a healthier and a more sustainable place.

Webcast and Conference Call Information

Dole plc will host a conference call and simultaneous webcast at 08:00 a.m. Eastern Time today to discuss the second quarter 2024 financial results. The webcast can be accessed at www.doleplc.com/investor-relations. The conference call can be accessed by registering at https://registrations.events/direct/Q4I2332517. The conference ID is 23325.

Forward-looking information

Certain statements made in this press release that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s beliefs, assumptions, and expectations of our future economic performance, considering the information currently available to management. 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 the negative of these words, identify forward-looking statements. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates, or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Accordingly, there are, or will be, important factors that could cause our actual results to differ materially from those indicated in these statements. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws.


Appendix
Condensed Consolidated Statements of Operations - Unaudited

	Three Months Ended						Six Months Ended
	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023

	(U.S. Dollars and shares in thousands, except per share amounts)
Revenues, net	$	2,124,091		$	2,141,174		$	4,245,465		$	4,130,341
Cost of sales		(1,923,505	)		(1,944,601	)		(3,850,202	)		(3,754,729	)
Gross profit		200,586			196,573			395,263			375,612
Selling, marketing, general and administrative expenses		(116,604	)		(115,667	)		(235,554	)		(236,546	)
Gain on disposal of business		1,995			—			75,945			—
(Loss) gain on asset sales		(89	)		10,723			328			14,696
Impairment of goodwill		—			—			(36,684	)		—
Impairment of property, plant and equipment		—			—			(1,277	)		—
Operating income		85,888			91,629			198,021			153,762
Other income, net		6,377			1,129			13,999			2,904
Interest income		2,624			2,640			5,703			4,949
Interest expense		(18,788	)		(19,748	)		(36,736	)		(41,460	)
Income from continuing operations before income taxes and equity earnings		76,101			75,650			180,987			120,155
Income tax expense		(25,460	)		(16,593	)		(59,861	)		(27,587	)
Equity method earnings		5,406			4,688			6,408			6,166
Income from continuing operations		56,047			63,745			127,534			98,734
Income (loss) from discontinued operations, net of income taxes		32,018			(11,438	)		25,967			(25,944	)
Net income		88,065			52,307			153,501			72,790
Net income attributable to noncontrolling interests		(7,948	)		(10,032	)		(3,241	)		(16,356	)
Net income attributable to Dole plc	$	80,117		$	42,275		$	150,260		$	56,434

Income (loss) per share - basic:
Continuing operations	$	0.51		$	0.57		$	1.31		$	0.86
Discontinued operations		0.34			(0.12	)		0.27			(0.27	)
Net income per share attributable to Dole plc - basic	$	0.85		$	0.45		$	1.58		$	0.59

Income (loss) per share - diluted:
Continuing operations	$	0.50		$	0.56		$	1.30		$	0.86
Discontinued operations		0.34			(0.12	)		0.27			(0.27	)
Net income per share attributable to Dole plc - diluted	$	0.84		$	0.44		$	1.57		$	0.59

Weighted-average shares:
Basic		94,930			94,909			94,930			94,904
Diluted		95,340			95,112			95,285			95,068


Condensed Consolidated Statements of Cash Flows - Unaudited

	Six Months Ended
	June 30, 2024			June 30, 2023

Operating Activities	(U.S. Dollars in thousands)
Net income	$	153,501		$	72,790
(Income) loss from discontinued operations, net of taxes		(25,967	)		25,944
Income from continuing operations		127,534			98,734
Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities - continuing operations:
Depreciation and amortization		48,395			52,635
Impairment of goodwill		36,684			—
Impairment of fixed assets		1,277			—
Net gain on sale of assets and asset write-offs		(328	)		(14,696	)
Net gain on sale of business		(75,945	)		—
Net (gain) loss on financial instruments		(7,096	)		1,015
Stock-based compensation expense		4,133			2,768
Equity method earnings		(6,408	)		(6,166	)
Amortization of debt discounts and debt issuance costs		4,780			3,186
Deferred tax (benefit) expense		(12,704	)		48
Pension and other postretirement benefit plan expense		1,088			3,091
Dividends received from equity method investments		4,193			5,105
Other		(110	)		(1,179	)
Changes in operating assets and liabilities:
Receivables, net of allowances		(127,190	)		(36,994	)
Inventories		(3,772	)		44,282
Prepaids, other current assets and other assets		(7,282	)		(13,790	)
Accounts payable, accrued liabilities and other liabilities		18,009			(61,295	)
Net cash provided by operating activities - continuing operations		5,258			76,744
Investing activities
Sales of assets		1,898			18,562
Capital expenditures		(35,693	)		(35,595	)
Proceeds from sale of business, net of transaction costs		115,845			—
Insurance proceeds		527			1,850
Purchases of investments		(260	)		(1,150	)
(Purchases) sales of unconsolidated affiliates		(388	)		1,498
Other		(2,579	)		(1,677	)
Net cash provided by (used in) investing activities - continuing operations		79,350			(16,512	)
Financing activities
Proceeds from borrowings and overdrafts		908,034			869,701
Repayments on borrowings and overdrafts		(1,021,795	)		(889,593	)
Dividends paid to shareholders		(15,189	)		(15,184	)
Dividends paid to noncontrolling interests		(19,445	)		(16,174	)
Other noncontrolling interest activity, net		—			(480	)
Payment of contingent consideration		(996	)		(1,169	)
Net cash (used in) financing activities - continuing operations		(149,391	)		(52,899	)
Effect of foreign exchange rate changes on cash		(8,079	)		3,210
Net cash provided by (used in) operating activities - discontinued operations		18,464			(2,898	)
Net cash used in investing activities - discontinued operations		(1,720	)		(5,410	)
Cash provided by discontinued operations, net		16,744			(8,308	)
(Decrease) increase in cash and cash equivalents		(56,118	)		2,235
Cash and cash equivalents at beginning of period, including discontinued operations		277,005			228,840
Cash and cash equivalents at end of period, including discontinued operations	$	220,887		$	231,075
Supplemental cash flow information:
Income tax payments, net of refunds	$	(56,096	)	$	(39,323	)
Interest payments on borrowings	$	(33,832	)	$	(41,159	)


Condensed Consolidated Balance Sheets - Unaudited

	June 30, 2024			December 31, 2023

ASSETS	(U.S. Dollars and shares in thousands)
Cash and cash equivalents	$	219,649		$	275,580
Short-term investments		6,182			5,899
Trade receivables, net of allowances for credit losses of $20,324 and $18,360, respectively		549,352			538,177
Grower advance receivables, net of allowances for credit losses of $19,673 and $19,839, respectively		99,423			109,958
Other receivables, net of allowances for credit losses of $13,309 and $13,227, respectively		120,603			117,069
Inventories, net of allowances of $5,056 and $4,792, respectively		368,309			378,592
Prepaid expenses		64,597			61,724
Other current assets		20,239			17,401
Fresh Vegetables current assets held for sale		484,416			414,457
Other assets held for sale		1,825			1,832
Total current assets		1,934,595			1,920,689
Long-term investments		15,302			15,970
Investments in unconsolidated affiliates		131,470			131,704
Actively marketed property		13,781			13,781
Property, plant and equipment, net of accumulated depreciation of $467,197 and $444,775, respectively		1,077,675			1,102,234
Operating lease right-of-use assets		315,801			340,458
Goodwill		434,797			513,312
DOLE brand		306,280			306,280
Other intangible assets, net of accumulated amortization of $118,505 and $134,420, respectively		28,578			41,232
Other assets		110,707			109,048
Deferred tax assets, net		69,630			66,485
Total assets	$	4,438,616		$	4,561,193
LIABILITIES AND EQUITY
Accounts payable	$	592,724		$	670,904
Income taxes payable		68,131			22,917
Accrued liabilities		360,269			357,427
Bank overdrafts		38,613			11,488
Current portion of long-term debt, net		55,201			222,940
Current maturities of operating leases		61,651			63,653
Payroll and other tax		25,704			27,791
Contingent consideration		1,099			1,788
Pension and other postretirement benefits		15,725			16,570
Fresh Vegetables current liabilities held for sale		275,626			291,342
Dividends payable and other current liabilities		39,723			29,892
Total current liabilities		1,534,466			1,716,712
Long-term debt, net		882,287			845,013
Operating leases, less current maturities		258,229			287,991
Deferred tax liabilities, net		83,892			92,653
Income taxes payable, less current portion		—			16,664
Contingent consideration, less current portion		7,252			7,327
Pension and other postretirement benefits, less current portion		116,640			121,689
Other long-term liabilities		48,461			52,295
Total liabilities		2,931,227			3,140,344

Redeemable noncontrolling interests		33,817			34,185
Stockholders’ equity:
Common stock — $0.01 par value; 300,000 shares authorized; 94,952 and 94,929 shares outstanding as of June 30, 2024 and December 31, 2023		950			949
Additional paid-in capital		801,774			796,800
Retained earnings		697,504			562,562
Accumulated other comprehensive loss		(129,373	)		(110,791	)
Total equity attributable to Dole plc		1,370,855			1,249,520
Equity attributable to noncontrolling interests		102,717			137,144
Total equity		1,473,572			1,386,664
Total liabilities, redeemable noncontrolling interests and equity	$	4,438,616		$	4,561,193

Reconciliation from Net Income to Adjusted EBITDA - Unaudited

The following information is provided to give quantitative information related to items impacting comparability. Refer to the 'Non-GAAP Financial Measures' section of this document for additional detail on each item.

	Three Months Ended						Six Months Ended
	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023

	(U.S. Dollars in thousands)
Net income (Reported GAAP)	$	88,065		$	52,307		$	153,501		$	72,790
(Income) loss from discontinued operations, net of income taxes		(32,018	)		11,438			(25,967	)		25,944
Income from continuing operations (Reported GAAP)		56,047			63,745			127,534			98,734
Income tax expense		25,460			16,593			59,861			27,587
Interest expense		18,788			19,748			36,736			41,460
Mark to market (gains) losses		(2,214	)		1,035			(5,084	)		1,857
(Gain) loss on asset sales		—			(10,387	)		31			(14,554	)
Gain on disposal of business		(1,995	)		—			(75,945	)		—
Cyber-related incident		—			571			—			5,321
Impairment of goodwill		—			—			36,684			—
Other items ⁴⁵		74			190			(1,726	)		863
Adjustments from equity method investments		2,946			2,922			4,460			4,245
Adjusted EBIT (Non-GAAP)		99,106			94,417			182,551			165,513
Depreciation		22,388			23,142			44,236			47,445
Amortization of intangible assets		1,886			2,574			4,159			5,190
Depreciation and amortization adjustments from equity method investments		2,041			2,548			4,574			4,920
Adjusted EBITDA (Non-GAAP)	$	125,421		$	122,681		$	235,520		$	223,068

_______________________
⁴		For the three months ended June 30, 2024, other items is primarily comprised of $0.1 million of asset writedowns, net of insurance proceeds. For the three months ended June 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds.
⁵		For the six months ended June 30, 2024, other items is primarily comprised of $1.6 million of insurance proceeds, net of asset writedowns. For the three months ended June 30, 2023, other items is primarily comprised of $0.9 million of asset writedowns, net of insurance proceeds.

Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited

	Three Months Ended						Six Months Ended
	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023

	(U.S. Dollars and shares in thousands, except per share amounts)
Net income attributable to Dole plc (Reported GAAP)	$	80,117		$	42,275		$	150,260		$	56,434
(Income) loss from discontinued operations, net of income taxes		(32,018	)		11,438			(25,967	)		25,944
Income from continuing operations attributable to Dole plc		48,099			53,713			124,293			82,378
Adjustments:
Amortization of intangible assets		1,886			2,574			4,159			5,190
Mark to market (gains) losses		(2,214	)		1,035			(5,084	)		1,857
(Gain) loss on asset sales		—			(10,387	)		31			(14,554	)
Gain on disposal of business		(1,995	)		—			(75,945	)		—
Cyber-related incident		—			571			—			5,321
Impairment of goodwill		—			—			36,684			—
Other items ⁶⁷		74			190			(1,726	)		863
Adjustments from equity method investments		720			623			1,251			742
Income tax on items above and discrete tax items		788			797			15,107			488
NCI impact of items above		(326	)		(736	)		(11,187	)		(1,629	)
Adjusted Net Income for Adjusted EPS calculation (Non-GAAP)	$	47,032		$	48,380		$	87,583		$	80,656

Adjusted earnings per share – basic (Non-GAAP)	$	0.50		$	0.51		$	0.92		$	0.85
Adjusted earnings per share – diluted (Non-GAAP)	$	0.49		$	0.51		$	0.92		$	0.85
Weighted average shares outstanding – basic		94,930			94,909			94,930			94,904
Weighted average shares outstanding – diluted		95,340			95,112			95,285			95,068

_______________________
⁶		For the three months ended June 30, 2024, other items is primarily comprised of $0.1 million of asset writedowns, net of insurance proceeds. For the three months ended June 30, 2023, other items is primarily comprised of $0.2 million of asset writedowns, net of insurance proceeds.
⁷		For the six months ended June 30, 2024, other items is primarily comprised of $1.6 million of insurance proceeds, net of asset writedowns. For the six months ended June 30, 2023, other items is primarily comprised of $0.9 million of asset writedowns, net of insurance proceeds.

Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited

	Three Months Ended June 30, 2024 (U.S. Dollars in thousands)
	Revenues, net		Cost of sales		Gross profit	Gross Margin %		Selling, marketing, general and administrative expenses		Other operating charges⁸		Operating Income
Reported (GAAP)	$	2,124,091	(1,923,505	)	200,586	*9.4*	%	(116,604	)	1,906		$	85,888
(Income) loss from discontinued operations, net of income taxes		—	—		—			—		—			—
Amortization of intangible assets		—	—		—			1,886		—			1,886
Mark to market (gains) losses		—	—		—			—		—			—
(Gain) loss on asset sales		—	—		—			—		—			—
Gain on disposal of business		—	—		—			—		(1,995	)		(1,995	)
Impairment of goodwill		—	—		—			—		—			—
Other items		—	157		157			—		—			157
Adjustments from equity method investments		—	—		—			—		—			—
Income tax on items above and discrete tax items		—	—		—			—		—			—
NCI impact of items above		—	—		—			—		—			—
Adjusted (Non-GAAP)	$	2,124,091	(1,923,348	)	200,743	*9.5*	%	(114,718	)	(89	)	$	85,936

_______________________
⁸		Other operating charges for the three months ended June 30, 2024 is primarily comprised of a gain on disposal of business of $2.0 million as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

	Three Months Ended June 30, 2023 (U.S. Dollars in thousands)
	Revenues, net		Cost of sales		Gross profit	Gross Margin %		Selling, marketing, general and administrative expenses		Other operating charges⁹		Operating Income
Reported (GAAP)	$	2,141,174	(1,944,601	)	196,573	*9.2*	%	(115,667	)	10,723		$	91,629
(Income) loss from discontinued operations, net of income taxes		—	—		—			—		—			—
Amortization of intangible assets		—	—		—			2,574		—			2,574
Mark to market (gains) losses		—	54		54			—		—			54
(Gain) loss on asset sales		—	—		—			—		(10,387	)		(10,387	)
Cyber-related incident		—	—		—			571		—			571
Other items		—	190		190			—		—			190
Adjustments from equity method investments		—	—		—			—		—			—
Income tax on items above and discrete tax items		—	—		—			—		—			—
NCI impact on items above		—	—		—			—		—			—
Adjusted (Non-GAAP)	$	2,141,174	(1,944,357	)	196,817	*9.2*	%	(112,522	)	336		$	84,631

_______________________
⁹		Other operating charges for the three months ended June 30, 2023 is comprised of gains on asset sales of $10.7 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

	Three Months Ended June 30, 2024 (U.S. Dollars in thousands)
	Other income, net			Interest income	Interest expense		Income tax expense		Equity method earnings		Income from continuing operations		Income (loss) from discontinued operations, net of income taxes
Reported (GAAP)	$	6,377		2,624	(18,788	)	(25,460	)	5,406		56,047			32,018
(Income) loss from discontinued operations, net of income taxes		—		—	—		—		—		—			(32,018	)
Amortization of intangible assets		—		—	—		—		—		1,886			—
Mark to market (gains) losses		(2,214	)	—	—		—		—		(2,214	)		—
(Gain) loss on asset sales		—		—	—		—		—		—			—
Gain on disposal of business		—		—	—		—		—		(1,995	)		—
Impairment of goodwill		—		—	—		—		—		—			—
Other items		(83	)	—	—		—		—		74			—
Adjustments from equity method investments		—		—	—		—		720		720			—
Income tax on items above and discrete tax items		—		—	—		888		(100	)	788			—
NCI impact of items above		—		—	—		—		—		—			—
Adjusted (Non-GAAP)	$	4,080		2,624	(18,788	)	(24,572	)	6,026		55,306		$	—

	Three Months Ended June 30, 2023 (U.S. Dollars in thousands)
	Other income, net		Interest income	Interest expense		Income tax expense		Equity method earnings		Income from continuing operations		Income (loss) from discontinued operations, net of income taxes
Reported (GAAP)	$	1,129	2,640	(19,748	)	(16,593	)	4,688		63,745			(11,438	)
(Income) loss from discontinued operations, net of income taxes		—	—	—		—		—		—			11,438
Amortization of intangible assets		—	—	—		—		—		2,574			—
Mark to market (gains) losses		981	—	—		—		—		1,035			—
(Gain) loss on asset sales		—	—	—		—		—		(10,387	)		—
Cyber-related incident		—	—	—		—		—		571			—
Other items		—	—	—		—		—		190			—
Adjustments from equity method investments		—	—	—		—		623		623			—
Income tax on items above and discrete tax items		—	—	—		878		(81	)	797			—
NCI impact of items above		—	—	—		—		—		—			—
Adjusted (Non-GAAP)	$	2,110	2,640	(19,748	)	(15,715	)	5,230		59,148		$	—

	Three Months Ended June 30, 2024 U.S. Dollars and shares in thousands, except per share amounts

	Net income			Net income attributable to noncontrolling interests			Net income attributable to Dole plc			Diluted net income per share
Reported (GAAP)	$	88,065		$	(7,948	)	$	80,117		$	0.84
(Income) loss from discontinued operations, net of income taxes		(32,018	)		—			(32,018	)
Amortization of intangible assets		1,886			—			1,886
Mark to market (gains) losses		(2,214	)		—			(2,214	)
(Gain) loss on asset sales		—			—			—
Gain on disposal of business		(1,995	)		—			(1,995	)
Impairment of goodwill		—			—			—
Other items		74			—			74
Adjustments from equity method investments		720			—			720
Income tax on items above and discrete tax items		788			—			788
NCI impact of items above		—			(326	)		(326	)
Adjusted (Non-GAAP)	$	55,306		$	(8,274	)	$	47,032		$	0.49

Weighted average shares outstanding – diluted		95,340

	Three Months Ended June 30, 2023 U.S. Dollars and shares in thousands, except per share amounts

	Net income			Net income attributable to noncontrolling interests			Net income attributable to Dole plc			Diluted net income per share
Reported (GAAP)	$	52,307		$	(10,032	)	$	42,275		$	0.44
(Income) loss from discontinued operations, net of income taxes		11,438			—			11,438
Amortization of intangible assets		2,574			—			2,574
Mark to market (gains) losses		1,035			—			1,035
(Gain) loss on asset sales		(10,387	)		—			(10,387	)
Cyber-related incident		571			—			571
Other items		190			—			190
Adjustments from equity method investments		623			—			623
Income tax on items above and discrete tax items		797			—			797
NCI impact of items above		—			(736	)		(736	)
Adjusted (Non-GAAP)	$	59,148		$	(10,768	)	$	48,380		$	0.51

Weighted average shares outstanding – diluted		95,112

Supplemental Reconciliation from Net Income attributable to Dole plc to Adjusted Net Income - Unaudited

	Six Months Ended June 30, 2024 (U.S. Dollars in thousands)
	Revenues, net		Cost of sales		Gross profit		Gross Margin %		Selling, marketing, general and administrative expenses		Other operating charges¹⁰		Operating Income
Reported (GAAP)	$	4,245,465	(3,850,202	)	395,263		*9.3*	%	(235,554	)	38,312		$	198,021
(Income) loss from discontinued operations, net of income taxes		—	—		—				—		—			—
Amortization of intangible assets		—	—		—				4,159		—			4,159
Mark to market (gains) losses		—	(120	)	(120	)			—		—			(120	)
(Gain) loss on asset sales		—	—		—				—		31			31
Gain on disposal of business		—	—		—				—		(75,945	)		(75,945	)
Impairment of goodwill		—	—		—				—		36,684			36,684
Other items		—	(1,643	)	(1,643	)			—		—			(1,643	)
Adjustments from equity method investments		—	—		—				—		—			—
Income tax on items above and discrete tax items		—	—		—				—		—			—
NCI impact of items above		—	—		—				—		—			—
Adjusted (Non-GAAP)	$	4,245,465	(3,851,965	)	393,500		*9.3*	%	(231,395	)	(918	)	$	161,187

_______________________
¹⁰		Other operating charges for the six months ended June 30, 2024 is primarily comprised of a gain on disposal of business of $75.9 million, offset by a goodwill impairment charge of $36.7 million and a fixed asset impairment charge of $1.3 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

	Six Months Ended June 30, 2023 (U.S. Dollars in thousands)
	Revenues, net		Cost of sales		Gross profit		Gross Margin %		Selling, marketing, general and administrative expenses		Other operating charges¹¹		Operating Income
Reported (GAAP)	$	4,130,341	(3,754,729	)	375,612		*9.1*	%	(236,546	)	14,696		$	153,762
(Income) loss from discontinued operations, net of income taxes		—	—		—				—		—			—
Amortization of intangible assets		—	—		—				5,190		—			5,190
Mark to market (gains) losses		—	(1,336	)	(1,336	)			—		—			(1,336	)
(Gain) loss on asset sales		—	—		—				—		(14,554	)		(14,554	)
Cyber-related incident		—	—		—				5,321		—			5,321
Other items		—	863		863				—		—			863
Adjustments from equity method investments		—	—		—				—		—			—
Income tax on items above and discrete tax items		—	—		—				—		—			—
NCI impact of items above		—	—		—				—		—			—
Adjusted (Non-GAAP)	$	4,130,341	(3,755,202	)	375,139		*9.1*	%	(226,035	)	142		$	149,246

_______________________
¹¹		Other operating charges for the six months ended June 30, 2023 is comprised of gains on asset sales of $14.7 million, as reported on the Dole plc GAAP Condensed Consolidated Statements of Operations.

	Six Months Ended June 30, 2024 (U.S. Dollars in thousands)
	Other income, net			Interest income	Interest expense		Income tax expense		Equity method earnings		Income from continuing operations		Income (loss) from discontinued operations, net of income taxes
Reported (GAAP)	$	13,999		5,703	(36,736	)	(59,861	)	6,408		127,534			25,967
(Income) loss from discontinued operations, net of income taxes		—		—	—		—		—		—			(25,967	)
Amortization of intangible assets		—		—	—		—		—		4,159			—
Mark to market (gains) losses		(4,964	)	—	—		—		—		(5,084	)		—
(Gain) loss on asset sales		—		—	—		—		—		31			—
Gain on disposal of business		—		—	—		—		—		(75,945	)		—
Impairment of goodwill		—		—	—		—		—		36,684			—
Other items		(83	)	—	—		—		—		(1,726	)		—
Adjustments from equity method investments		—		—	—		—		1,251		1,251			—
Income tax on items above and discrete tax items		—		—	—		15,307		(200	)	15,107			—
NCI impact of items above		—		—	—		—		—		—			—
Adjusted (Non-GAAP)	$	8,952		5,703	(36,736	)	(44,554	)	7,459		102,011		$	—

	Six Months Ended June 30, 2023 (U.S. Dollars in thousands)
	Other income, net		Interest income	Interest expense		Income tax expense		Equity method earnings		Income from continuing operations		Income (loss) from discontinued operations, net of income taxes
Reported (GAAP)	$	2,904	4,949	(41,460	)	(27,587	)	6,166		98,734			(25,944	)
(Income) loss from discontinued operations, net of income taxes		—	—	—		—		—		—			25,944
Amortization of intangible assets		—	—	—		—		—		5,190			—
Mark to market (gains) losses		3,193	—	—		—		—		1,857			—
(Gain) loss on asset sales		—	—	—		—		—		(14,554	)		—
Cyber-related incident		—	—	—		—		—		5,321			—
Other items		—	—	—		—		—		863			—
Adjustments from equity method investments		—	—	—		—		742		742			—
Income tax on items above and discrete tax items		—	—	—		650		(162	)	488			—
NCI impact of items above		—	—	—		—		—		—			—
Adjusted (Non-GAAP)	$	6,097	4,949	(41,460	)	(26,937	)	6,746		98,641		$	—

	Six Months Ended June 30, 2024 U.S. Dollars and shares in thousands, except per share amounts

	Net income			Net income attributable to noncontrolling interests			Net income attributable to Dole plc			Diluted net income per share
Reported (GAAP)	$	153,501		$	(3,241	)	$	150,260		$	1.57
(Income) loss from discontinued operations, net of income taxes		(25,967	)		—			(25,967	)
Amortization of intangible assets		4,159			—			4,159
Mark to market (gains) losses		(5,084	)		—			(5,084	)
(Gain) loss on asset sales		31			—			31
Gain on disposal of business		(75,945	)		—			(75,945	)
Impairment of goodwill		36,684			—			36,684
Other items		(1,726	)		—			(1,726	)
Adjustments from equity method investments		1,251			—			1,251
Income tax on items above and discrete tax items		15,107			—			15,107
NCI impact of items above		—			(11,187	)		(11,187	)
Adjusted (Non-GAAP)	$	102,011		$	(14,428	)	$	87,583		$	0.92

Weighted average shares outstanding – diluted		95,285

	Six Months Ended June 30, 2023 U.S. Dollars and shares in thousands, except per share amounts

	Net income			Net income attributable to noncontrolling interests			Net income attributable to Dole plc			Diluted net income per share
Reported (GAAP)	$	72,790		$	(16,356	)	$	56,434		$	0.59
(Income) loss from discontinued operations, net of income taxes		25,944			—			25,944
Amortization of intangible assets		5,190			—			5,190
Mark to market (gains) losses		1,857			—			1,857
(Gain) loss on asset sales		(14,554	)		—			(14,554	)
Cyber-related incident		5,321			—			5,321
Other items		863			—			863
Adjustments from equity method investments		742			—			742
Income tax on items above and discrete tax items		488			—			488
NCI impact of items above		—			(1,629	)		(1,629	)
Adjusted (Non-GAAP)	$	98,641		$	(17,985	)	$	80,656		$	0.85

Weighted average shares outstanding – diluted		95,068

Supplemental Reconciliation of Prior Year Segment Results to Current Year Segment Results – Unaudited

	Revenue for the Three Months Ended
	June 30, 2023			Impact of Foreign Currency Translation			Impact of Acquisitions and Divestitures			Like-for-like Increase (Decrease)		June 30, 2024

	(U.S. Dollars in thousands)
Fresh Fruit	$	839,043		$	—		$	—		$	12,408	$	851,451
Diversified Fresh Produce - EMEA		915,629			(8,737	)		7,799			30,160		944,851
Diversified Fresh Produce - Americas & ROW		417,645			(899	)		(108,061	)		47,372		356,057
Intersegment		(31,143	)		—			—			2,875		(28,268	)
Total	$	2,141,174		$	(9,636	)	$	(100,262	)	$	92,815	$	2,124,091


	Adjusted EBITDA for the Three Months Ended
	June 30, 2023			Impact of Foreign Currency Translation			Impact of Acquisitions and Divestitures			Like-for-like Increase (Decrease)		June 30, 2024

	(U.S. Dollars in thousands)
Fresh Fruit	$	65,816		$	45		$	—		$	4,758	$	70,619
Diversified Fresh Produce - EMEA		42,603			(311	)		257			146		42,695
Diversified Fresh Produce - Americas & ROW		14,262			(10	)		(7,337	)		5,192		12,107
Total	$	122,681		$	(276	)	$	(7,080	)	$	10,096	$	125,421


	Revenue for the Six Months Ended
	June 30, 2023			Impact of Foreign Currency Translation			Impact of Acquisitions and Divestitures			Like-for-like Increase (Decrease)		June 30, 2024

	(U.S. Dollars in thousands)
Fresh Fruit	$	1,637,953		$	—		$	—		$	37,727	$	1,675,680
Diversified Fresh Produce - EMEA		1,713,729			3,932			13,971			66,817		1,798,449
Diversified Fresh Produce - Americas & ROW		840,396			(726	)		(127,501	)		120,770		832,939
Intersegment		(61,737	)		—						134		(61,603	)
Total	$	4,130,341		$	3,206		$	(113,530	)	$	225,448	$	4,245,465


	Adjusted EBITDA for the Six Months Ended
	June 30, 2023			Impact of Foreign Currency Translation			Impact of Acquisitions and Divestitures			Like-for-like Increase (Decrease)		June 30, 2024

	(U.S. Dollars in thousands)
Fresh Fruit	$	135,027		$	(1	)	$	—		$	5,028	$	140,054
Diversified Fresh Produce - EMEA		66,009			37			125			2,483		68,654
Diversified Fresh Produce - Americas & ROW		22,032			(19	)		(8,626	)		13,425		26,812
Total	$	223,068		$	17		$	(8,501	)	$	20,936	$	235,520

Net Debt Reconciliation

Net Debt is the primary measure used by management to analyze the Company’s capital structure. Net Debt is a non-GAAP financial measure, calculated as cash and cash equivalents, less current and long-term debt. It also excludes debt discounts and debt issuance costs. The calculation of Net Debt as of June 30, 2024 is presented below. Net Debt as of June 30, 2024 was $767.5 million.

	June 30, 2024			December 31, 2023

	(U.S. Dollars in thousands)
Cash and cash equivalents (Reported GAAP)	$	219,649		$	275,580
Debt (Reported GAAP):
Long-term debt, net		(882,287	)		(845,013	)
Current maturities		(55,201	)		(222,940	)
Bank overdrafts		(38,613	)		(11,488	)
Total debt, net		(976,101	)		(1,079,441	)
Less: Debt discounts and debt issuance costs (Reported GAAP)		(11,064	)		(14,395	)
Total gross debt		(987,165	)		(1,093,836	)
Net Debt (Non-GAAP)	$	(767,516	)	$	(818,256	)

Free Cash Flow from Continuing Operations Reconciliation

	Six Months Ended
	June 30, 2024			June 30, 2023

	(U.S. Dollars in thousands)
Net cash (used in) provided by operating activities - continuing operations (Reported GAAP)	$	5,259		$	76,744
Less: Capital expenditures (Reported GAAP)¹²		(35,693	)		(35,595	)
Free cash flow from continuing operations (Non-GAAP)	$	(30,434	)	$	41,149

_______________________
¹²		Capital expenditures do not include amounts attributable to discontinued operations.

Non-GAAP Financial Measures

Dole plc’s results are determined in accordance with U.S. GAAP.

In addition to its results under U.S. GAAP, in this Press Release, we also present Dole plc’s Adjusted EBIT, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow from Continuing Operations and Net Debt, which are supplemental measures of financial performance that are not required by, or presented in accordance with, U.S. GAAP (collectively, the "non-GAAP financial measures"). We present these non-GAAP financial measures, because we believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our operating results, cash flows or any other measure prescribed by U.S. GAAP. Our presentation of non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items or that any projections and estimates will be realized in their entirety or at all. In addition, adjustment items that are excluded from non-GAAP results can have a material impact on equivalent GAAP earnings, financial measures and cash flows.

Adjusted EBIT is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (5) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2024 and June 30, 2023, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on goodwill and adding costs incurred for the cyber-related incident; and (6) the Company’s share of these items from equity method investments.

Adjusted EBITDA is calculated from GAAP net income by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding the income tax expense or subtracting the income tax benefit; (3) adding interest expense; (4) adding depreciation charges; (5) adding amortization charges on intangible assets; (6) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (7) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2024 and June 30, 2023, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on goodwill and adding costs incurred for the cyber-related incident; and (8) the Company’s share of these items from equity method investments.

Adjusted Net Income is calculated from GAAP net income attributable to Dole plc by: (1) subtracting the income or adding the loss from discontinued operations, net of income taxes; (2) adding amortization charges on intangible assets; (3) adding mark to market losses or subtracting mark to market gains related to unrealized impacts from certain derivative instruments and foreign currency denominated borrowings, realized impacts on noncash settled foreign currency denominated borrowings, net foreign currency impacts on liquidated entities and fair value movements on contingent consideration; (4) other items which are separately stated based on materiality, which during the three and six months ended June 30, 2024 and June 30, 2023, included adding or subtracting asset write-downs from extraordinary events, net of insurance proceeds, subtracting the gain or adding the loss on the disposal of business interests, subtracting the gain or adding the loss on asset sales for assets held for sale and actively marketed property, adding impairment charges on goodwill and adding costs incurred for the cyber-related incident; (5) the Company’s share of these items from equity method investments; (6) excluding the tax effect of these items and discrete tax adjustments; and (7) excluding the effect of these items attributable to non-controlling interests.

Adjusted Earnings per Share is calculated from Adjusted Net Income divided by diluted weighted average number of shares in the applicable period.

Net Debt is a non-GAAP financial measure, calculated as GAAP cash and cash equivalents, less GAAP current and long-term debt. It also excludes GAAP unamortized debt discounts and debt issuance costs.

Free cash flow from continuing operations is calculated from GAAP net cash used in or provided by operating activities for continuing operations less GAAP capital expenditures.

Like-for-like basis refers to the U.S. GAAP measure or non-GAAP financial measure excluding the impact of foreign currency translation movements and acquisitions and divestitures.

Dole is not able to provide a reconciliation for projected FY'24 results without taking unreasonable efforts.

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