Dole's initial semester earnings plummet close to 60%, despite reporting a robust second quarter
Dole Reports Strong First Half Growth, Boosted by Fresh Produce Segments and Strategic Divestiture
Dole, a leading fruit and vegetable company headquartered in Dublin, has announced impressive financial results for the first half of 2025. The company's revenue soared by 6.67% to reach $4.5 billion, while its adjusted EBITDA increased by 9.3% compared to the same period in 2024.
The strong growth can be attributed to Dole's core fresh produce segments, particularly in the fresh fruit and diversified fresh produce categories. The company's banana and pineapple sales and pricing showed significant growth, leading to a first half revenue increase in the fruit sector from $1.68 billion in 2024 to $1.85 billion in 2025. Higher revenue from South America exports, along with the "continued good performance" of apples, citrus, and avocado products, grew revenue in the Americas and rest of world division.
The group's second quarter revenues rose by an impressive 14% to $2.4 billion. This growth was driven by strong performance in the EMEA produce sector, with favourable currency exchange rates aiding growth in the UK, Spain, Scandinavia, and the Netherlands, resulting in a 10.8% increase in first half revenue to $1.99 billion.
The sale of Dole's fresh vegetables division, a 3,000-employee operation, to Californian agricultural investment firm Arable Capital Partners for over $140 million, is considered an important strategic milestone. The divestiture allowed Dole to focus on its core business activities and positively influenced adjusted EBITDA by streamlining operations.
Despite higher revenue and EBITDA, Dole's net income declined to around $62 million for the first six months of 2025, a 59% drop from the $153.5 million in the first half of 2024. The decrease was primarily due to a $35 million loss in discontinued operations (related to the Fresh Vegetables division) and an unrealized foreign currency loss of $19.1 million.
Dole's executive chairman, Carl McCann, announced an upward revision of the full-year Ebitda guidance, targeting a range of $380 million to $390 million. The company remains confident in the resilience of its diversified business model and the international fresh produce industry, and expects its "positive momentum" to continue, although short-term issues may persist.
In addition, Dole refinanced its long-term revolving credit facility for five years to a value of $600 million, providing financial flexibility to support growth initiatives and manage costs.
In summary, Dole’s solid organic growth in core fresh produce segments and a successful sale of non-core assets contributed to increased revenue and adjusted EBITDA, while net income was negatively impacted by losses on discontinued operations and currency effects during the first half of 2025. The company remains optimistic about its future prospects and is poised to continue its growth trajectory.
Investing in Dole's stock may be a promising move for those interested in the business sector, given its strong financial performance in the first half of 2025. The company's strategic divestiture of its fresh vegetables division to Arable Capital Partners for over $140 million has allowed Dole to focus on its core business activities and potentially improve its operating efficiency.
