By Michael Dabaie


Dole PLC shares slid 11% to $9.96 and earlier hit a 52-week low of $9.81 after the company lowered guidance and reported first-quarter results that missed analyst expectations.

The fresh produce company cut its fiscal 2022 guidance to a range of $9.4 billion to $9.7 billion, from March's outlook of $9.6 billion to $9.9 billion.

Dole guided for adjusted earnings before interest, taxes, depreciation and amortization in the range of $350.0 million to $370.0 million, down from the $370.0 million to $380.0 million prior forecast.

The company said its reduction in targeted adjusted EBITDA was due to a slower-than-anticipated return to full operating profitability in the Fresh Vegetables segment and a more negative foreign currency translation impact of Euro earnings to U.S. dollar after a strengthening of the dollar against European currencies.

Chief Executive Rory Byrne in the company's conference call noted that the geopolitical situation in Europe has created a less predictable operating environment and supply chain disruption, inflation and exchange rate volatility continue to provide challenges.

Dole reported first-quarter revenue of $2.25 billion, missing FactSet consensus of $2.32 billion.

Dole PLC was formed in 2021 from the combination of Total Produce PLC and Dole Food Co. Inc. and the company later conducted an initial public offering.

The company swung to a loss per share of 1 cents. Adjusted EPS came to 30 cents, while FactSet consensus for EPS excluding extraordinary items was 35 cents.

The company said revenue was hit by the packaged salads recall and temporary plant closures in January and February, and led to a decrease in volumes of Value Added salad products. The segment was also affected by a planned decrease in volumes in Fresh Packed vegetables products.

"The first quarter of last year had the benefit of a strong market conditions due to tight supply of product following the hurricanes at the end of 2020," Chief Financial Officer Frank Davis said in the call.

"Higher cost of fruit driven by higher input costs and higher cost distribution negatively impacted adjusted EBITDA in the first quarter. These higher operating costs were partially offset by higher prices in core markets and the strong performance of our commercial cargo business," Mr. Davis said.


Write to Michael Dabaie at michael.dabaie@wsj.com


(END) Dow Jones Newswires

05-24-22 1348ET