Dole PLC Sees Strong Start to 2026 with Revenue Growth of 12% YOY
The first quarter of 2026 has gotten off to a solid start for Dole PLC, according to the company's latest conference call transcript. With revenue growth of 12% year-over-year, the company is seeing positive consumer demand for its products across all key markets.
As reported by Chief Executive Officer Rory Byrne on the Q1 results webcast, this growth is supported by evolving dietary preferences influenced by GLP-1 adoption and broader health and wellness trends. Adjusted EBITDA of $100 million was in line with expectations, driven by strong performances in Diversified Americas and growth in Diversified EMEA, partially offsetting a lower result in fresh fruit due to higher fruit sourcing costs.
The resilience of the company's business model is being tested by the ongoing conflict in the Middle East, which has led to elevated fuel costs and higher prices for inputs such as fertilizer and paper. However, despite this additional complexity, Dole PLC continues to demonstrate its ability to adapt and thrive in challenging circumstances.
A notable highlight from the quarter was the announcement of the sale of the company's port operations in Guayaquil, Ecuador, to Terminal Investment Limited. Regulatory approval has been received, and completion is expected during the current quarter, with net proceeds after tax anticipated at approximately $75 million.
The company's capital allocation strategy remains focused on seeking the best long-term returns for shareholders. Several development opportunities have been identified throughout operations, which are expected to deliver good returns when benchmarked against alternative share repurchases. These opportunities span the value chain and combine development investments and bolt-on acquisitions.
In terms of specific initiatives, Dole PLC has increased its own production and sourcing in fresh fruit through an investment by one of its joint ventures. This includes organic and conventional bananas, as well as plantains sourced from Guatemala. The company has also invested in the cherry category, securing high-quality and stable product volumes, while packing operations have been upgraded for cherries, citrus, and other products.
Investments are being made both through wholly-owned operations and via joint venture companies. In Diversified EMEA, the focus is on end markets and distribution channels, with investments in logistics and automation capabilities, particularly in Sweden. The third-party logistics company, No Waste Logistics, has delivered good returns, and further opportunities for similar investments are seen in this business.
Finally, the company is exploring a strategic opportunity to invest in automation, AI, and innovative warehouse solutions to better serve its core customer base. This move highlights Dole PLC's commitment to innovation and its dedication to delivering value to shareholders and customers alike."
