Dole doubles revenue after merger with Total Produce

Dublin-based Dole, the world's largest fresh fruit and vegetable supplier, saw revenue more than double last year following its merger with Total Produce.

The company, formed in July through the merger of Total Produce – a 2006 spin-off from Fyffes – and US rival Dole Foods saw pro-forma revenue increase 113.7 per cent to $9.3 billion (€8.5 billion) in the year to December 31st, 2021.

Total Produce completed the acquisition of the remaining 55 per cent of Dole Foods on July 29th, 2021, to create Dole. Following this acquisition, the group increased significantly in scale and geographical footprint.

The “pro-forma” figures reported are calculated as if the merger had occurred on January 1st, 2020, in order to give an insight into trends.

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Pro-forma adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year of $393.6 million were up 56.5 per cent compared with adjusted EBITDA for 2020. Total assets increased 147.5 per cent to $4.7 billion following the acquisition.

The group now has a strategic and valuable asset base, including more than 114,000 acres of land and other land holdings, more than 160 distribution and manufacturing facilities, 75 packing houses, 12 cold storage facilities, five salad manufacturing plants and 13 owned vessels.

‘Transformational year’

Dole executive chairman Carl McCann said 2021 “marked a transformational year” for the group.

“Our scale and footprint have increased significantly and we are well positioned to deliver long-term sustainable growth,” he said. “The group delivered a strong performance for the full year of 2021, with growth across key metrics in line with guidance.

“Our diversified business model has continued to provide resilience within a challenging macro-economic environment, while our strategic asset base and multi-continental sourcing model provide a competitive advantage.”

In terms of outlook for 2022, Dole is targeting revenue in the range of $9.6-$9.9 billion and adjusted EBITDA of $370-$380 million. It is targeting capital expenditures of about $125 million.

It said the year-on-year expected reduction in adjusted EBITDA is primarily due to the significant impact of the value added salads product recall and temporary plant closures.

“Due to the uncertainty caused by the current geopolitical situation in Ukraine and Russia, it is difficult to accurately predict what impact this may have on global trade flows, cost inflation and foreign exchange rates, and how this might impact the group,” it added.

With the exception of the value added salads business, all other businesses within the group have commenced the year “satisfactorily and are trading in line with expectations”. The board declared a cash dividend for the fourth quarter of 2021 of $0.08 per share.