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| Statement |
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| Overall, we anticipate continued strong performance for our Diversified EMEA segment in 2024 as we continue to leverage our strong market positions, operational integration and investment opportunities |
| Well, we're very pleased with the group's exceptional performance in 2023, delivering $385 million of adjusted EBITDA from continuing operations, and the result that we believe gives us a strong platform from which to build further momentum in the 2024 financial year |
| I think we're really well positioned, hopefully to continue for a strong 2024 as well |
| We launched Dole Organics and the Go Organic brand in Europe, and this has been positively received by customers |
| And I think we've done very well |
| We launched our premium Golden Selection Pineapple during 2023, and this was very well received by all of our customers and provides a strong base for further planned innovation in this category |
| We continue to make good progress in consolidating our third-party shipping volumes and managing this key aspect of our operations efficiently |
| For the full year 2023, free cash flow from continuing operations was $221 million, driven by strong adjusted EBITDA performance, and good working capital management across the group |
| Progressive business was a discrete part of the diversified Americas and the Rest of the World segment, and this realized a successful exit and an attractive valuation from our initial $30 million investment back in 2016 |
| We are pleased today to report very strong full year results, achieving an adjusted EBITDA of $385 million from full financial year, which outperformed our initial guidance for the year of $350 million by 10% |
| And so I think it's been a great pleasure to look back over 2023 as a year of extremely positive momentum for what is now the one group of Dole plc |
| So we're optimistic that we can continue on that path |
| This growth was driven by a strong performance in our Diversified Fresh Produce EMEA segment and stable consistent performances in both our Fresh Fruit and Diversified Fruit Americas segment |
| They're solid, steady, consistent growth businesses |
| In this regard, we're really pleased with our strong cash generation which led to a reduction in net data of over $200 million at the end of 2023 |
| Our success has been driven by a combination of factors such as good operating performance, a disciplined approach to capital investment, excellent working capital management, and as mentioned earlier, a strong year for the sale of noncore assets |
| While this segment delivered a robust performance in full year with adjusted EBITDA up $209 million which was approximately 2% ahead of 2022 |
| And I would also say that we had some favorable tailwinds in 2023 that a lot of those businesses all work pretty well |
| And taking this into account, we were very pleased with the result delivered |
| Over the course of 2023, a key growth driver was a strong recovery in our European business after a challenging 2022 along with good profitability in our pineapple business which has benefited from an improving supply-demand balance in the key Costa Rica growing region as well as by the success of our Golden Selection Pineapple in the marketplace |
| So you put all of that together with strong customer base, mature business, well-developed team |
| Our strong and experienced management team are keenly focused on risk management, driving operational efficiencies and best products which would deliver sustainable growth and profitability |
| So could you maybe just unpack the drivers of that performance on the top line and on profits and what's underpinning your confidence that you can continue to drive strong performance over, on this elevated base over 2024? Rory Byrne Yes, I think we've got a strong position in many European markets with a number one player in Sweden and Denmark and Spain, in UK and Ireland, strong position in Holland, strong position at our Hamburg office in Germany, and number one position in Czech Republic |
| Our Diversified EMEA segment finished 2023 on a very strong note to round up an excellent performance for the full year |
| The segment delivered significant like-for-like growth in the quarter and full year by benefiting further from improved currency rates |
| As we have previously noted, 2023 was a very strong performance for the sale of idle and noncore assets, and we realized gross proceeds of $19 million in the fourth quarter to bring us to a total of $84 million for the full year |
| We believe that this approach together with the continuing -- will continue to leverage our established and diverse sourcing infrastructure and customer base will allow us to deliver another strong and consistent performance in 2024 |
| While 2023 was a year of good progress and positive momentum for Dole plc with the business growing its position as the leading provider of fresh produce in the world |
| Adjusted EBITDA came out marginally lower than the prior year, however, as mentioned by Rory, the Fresh Fruit segment performance in Q4 2022 was exceptionally strong |
| Improved supply chain conditions for our South American export business have led to better operating results in this part of the segment in 2023 |
| Statement |
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| Finally, turning to Diversified Fresh Produce, Americas and Rest of the World on slide 13, revenue decreased 14.7%, primarily due to lower -- to expected lower volumes of cherries due to seasonal timing differences and weather impacts, as well as a continued challenging performance for the berry category in North America |
| As ever, the operating environment continues to present new challenges and, indeed, new opportunities |
| The decrease was primarily due to higher fruit banana sourcing costs and weaker performance in our commercial cargo business and other diversified products |
| However, the segment has been impacted by challenging performance in our North American berry business and work continues to turn around to profitability of this segment |
| And there's no doubt that in the North American markets, the retail price has been under probably more competitive pressure and that has put some pressure on pricing |
| Weather is also an important variable on the supply side that we monitor under El Niño conditions increasingly being felt in the current banana production cycles, we are anticipating industry volume to remain low in 2024 |
| The adjusted EBITDA decreased $11 million compared to a strong comparative period |
| On an adjusted basis, fourth quarter adjusted net income decreased 14% to $14.8 million |
| We have seen shipping disturbance as well because of the Panama Canal |
| Turning to our Fresh Vegetable segment, unfortunately, the process of obtaining antitrust clearance is taking longer than we anticipated |
| We also had the impact of higher sourcing costs due to the combination of low production volumes in many world regions and currency pressures in certain sourcing countries |
| I mean the forecasting, I suppose, just generally has become more challenging with the variability and volatility of just in the world in general terms |
| We think that some of that is going to reduce volume |
| So we've seen some dry conditions in some of the Central and South American countries and Ecuador, we've seen volatility in weather |
| Offsetting these were lower banana prices in North America and lower worldwide volumes of pineapples sold |
| The decrease was primarily due to the marginal decrease in adjusted EBITDA and higher interest expense |
| While we continue to believe that the agreement reached with Fresh Express is best for consumers, customers, suppliers, employees, and shareholders, the outcome remains uncertain |
| Adjusted diluted EPS was $1.24 for the full year compared to $1.44 on the prior year with the reduction primarily due to higher year-on-year interest expense |
| In North America, our operations are continuing to perform well but did face challenges during the year with intense competition in the marketplace and lower commercial cargo profitability |
| So we have not been disrupted by the rain as much as others |
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