BREAKING NEWS
Dole Reports Second Quarter 2024 Financial Results
Dole plc, the world’s largest producer and distributor of fresh fruits and vegetables, has released its financial results for the second quarter of 2024. The company has reported a net loss of $22.3 million for the period, compared to a net income of $53.8 million in the same period last year.
Despite the loss, Dole’s total revenue increased by 2.5% to $2.12 billion, driven by higher prices for fresh produce and stronger demand from consumers. The company’s gross margin expanded by 0.3% to 14.9%, driven by a combination of price increases and operational efficiency improvements.
The company’s performance was impacted by the ongoing effects of the COVID-19 pandemic, which continues to disrupt global supply chains and impact consumer behavior. Dole’s supply chain and logistics capabilities were tested by the pandemic, but the company says it has made significant progress in adapting to the new normal and improving its ability to meet customer demands.
"We are pleased with our ability to deliver a 2.5% increase in revenue and a 0.3% expansion in our gross margin, despite the challenging operating environment," said David Mercaldo, Chief Executive Officer of Dole. "Our team has done an excellent job in adapting to the changing landscape and executing on our strategies to drive growth and profitability."
The company’s fresh produce business saw a significant increase in demand during the quarter, driven by a combination of price promotions, new product introductions, and stronger retail and foodservice demand. The company’s packaged food business, which includes products such as bagged salads and prepared fruit and vegetable cups, saw a decline in sales, but the company believes this trend is reversible with the right pricing and product strategies.
"We are excited about the potential of our packaged food business, which offers significant opportunities for growth and margin expansion," said Mercaldo. "We are investing in new products and marketing initiatives to drive sales and increase consumer awareness."
The company’s guidance for the full year 2024 remains unchanged, with Dole expecting to report revenue in the range of $8.5 to $9.5 billion and adjusted earnings per share of $1.80 to $2.30.
KEY POINTS
- Dole reports a net loss of $22.3 million for the second quarter of 2024
- Total revenue increases by 2.5% to $2.12 billion
- Gross margin expands by 0.3% to 14.9%
- Fresh produce business sees significant increase in demand, driven by price promotions and new product introductions
- Packaged food business sees decline in sales, but company believes trend is reversible with the right pricing and product strategies
- Guidance for the full year 2024 remains unchanged
TAGS
Dole, Dole Financial Results, Q2 2024, Financial Reports, Fresh Fruits, Fresh Vegetables, Food Industry, Packaged Foods, Foodservice, Retail, COVID-19, Supply Chain, Logistics, David Mercaldo, CEO Dole.
RECENT DEVELOPMENTS
- Dole reports strong growth in its fresh produce business, driven by higher prices and demand
- The company expands its partnership with major food retailers to increase distribution and availability of its products
- Dole introduces new packaging designs and product formats to increase convenience and appeal to consumers
Dole Reports Second Quarter 2024 Financial Results
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