Dole plc (NYSE:DOLE) Q2 2023 Earnings Call Transcript

Also when you look at the dry areas, we have more irrigation in place and also different ag practices than we had then. So we don’t believe the impact will be as big as it was in the late ’90s. Then there are some other impacts in Peru when it comes to avocados and berries. The seasons get a little bit delayed, and volumes get a little bit lower, but the big ones are for bananas.

Adam Samuelson: Okay, that’s very helpful. And then just clarify on the EBITDA guidance for the year and I appreciate that there is the modifier on that lease. But I guess first half, EBITDA of Q2 ’23 just the implied second half kind of is almost just a $350 million would almost be equal to what you did in the second quarter alone, appreciating their seasonality, but can you just maybe talk about where seasonality you expect — you think seasonality might be more pronounced at $350 million EBITDA level and — would be.

Rory Byrne: Yeah, I mean, historically, Adam, if you go back over the banana business, it was a strong first half and a much weaker second half. Last year, certainly, the back half of the year was disproportionately strong and so it’s a little bit of an unusual year. We’re seeing a little bit more consistency in earnings over the course of the year with some of the dynamics, underlying dynamics changing as we move along. And so, I mean, we’ve just put the factors into it. We’re happy with Q2. We’re happy what we’re trading at the moment and we’re feeling positive about the full year outcome. But we just don’t think there’s any sense and in being more specific than that at this point in time.

Adam Samuelson: Okay. All right. That’s helpful. I’ll pass it on. Thanks.

Rory Byrne: Thanks, Adam.

Operator: Our next question comes from Christopher Barnes from Deutsche Bank. Your line is now open.

Christopher Barnes: Hi. Good afternoon. Thanks for the question. I guess I’m also kind of pick up on the EBITDA guidance. It just seems like with like the way the European currencies are moving moderating inflation, being even more beneficial over the back half versus what we just saw in the first half alongside like easing comparisons in the Americas, Rest of World business with the comparison with the great business a year ago. Like where specifically do you see like the greater like what’s causing you like the greatest like costs for concerns like over the back half? I know like spot rates for the Costa Rica colon and Colombian peso appear to be moving against you. But like any just any incremental color over the back half would be helpful. Thanks.

Rory Byrne: I think really as I said earlier lot of it relates to the outcome in the back half of last year. We had an exceptionally strong set of circumstances and everything came together in a positive way, particularly in the Fresh Fruit division in the last quarter of 2022. Back half of the year historically tends to be quite a bit weaker and we’re not suggesting that this year is going to be dramatically weaker, but it’s just we put all the factors into the mix and we think let’s take it step by step and let’s not get ahead of ourselves in terms of putting out a figure and then unable to justify it. So we’re feeling comfortable. We’re feeling positive and we’ve put the guidance out on that basis, Chris, into the market.

Christopher Barnes: Got it. Thank you. And, Johan, like, as it related to the volume decline of like 8% for the bananas and the late ’90s El Nino like are you able to like how much of like an EBITDA headwind would that have amounted to? Obviously you mentioned all the improved operational practices you have in place, but this is the way like I guess like if you have a worst-case scenario like what kind of an EBITDA headwind are we looking at? Thanks.