Total Produce's Dole investment sees fall in earnings

Fresh produce company Total Produce updated the market on its Dole Food Company investment on Monday, having completed the acquisition of 45% of the issued share capital of Dole on 31 July.

The AIM-traded firm said Dole had recently finalised its results for the third quarter period ending 6 October, prepared under US GAAP.

It said the S-1 adjusted EBITDA was $45.4m, compared to $50.1m for the same period in 2017, which reflected a $7.4m EBITDA reduction in fresh vegetables.

In addition, during the third quarter, Dole sold its corporate headquarters for $50.0m and recognised a net gain of $7.3m, which was not included in the adjusted EBITDA.

“Dole Fresh Fruit has performed strongly,” the Total Produce board said in its statement.

“Dole Fresh Vegetables has been affected by an industry-wide safety notice, not directly linked to Dole, and an oversupply resulting in lower pricing.

“As previously announced, this also reduced Dole's first-half EBITDA by $30m, prior to the investment by Total Produce.”