Sunday 15 September 2019

Dole Foods reports earnings drop of $5m

Total Produce, chaired by Carl McCann, has the option to fully acquire Dole in five years
Total Produce, chaired by Carl McCann, has the option to fully acquire Dole in five years
Ellie Donnelly

Ellie Donnelly

Dole Food has reported earnings before interest, taxation, depreciation, and amortisation (EBITDA) of $45.4m (€40m) for the three months to October 6th.

This represents decline on the $50.1m (€44m) EBITDA reported for the same period in 2017, according to a statement from Total Produce, which in July completed the acquisition of 45pc of Dole for $300m.

The year-on-year drop in earnings reflected a $7.4m EBITDA reduction in fresh vegetables, which had been impacted by an industry-wide safety notice linked to romaine lettuce – and not directly linked to Dole – and oversupply resulting in lower pricing.

Meanwhile Dole fresh fruit has performed strongly.

During the three months Dole sold its corporate headquarters for $50m, with an associated gain of $7.3m, which was not included in the EBITDA.

Total, a spin-out from Fyffes, and chaired by Carl McCann, has the option to fully acquire Dole in five years.

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