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    Gary Martin • Davy

    Gary Martin's questions to Dole PLC (DOLE) leadership

    Gary Martin's questions to Dole PLC (DOLE) leadership • Q2 2025

    Question

    Gary Martin of Davy asked for more details on the Fresh Vegetables disposal, including the seller note terms and the plan for two retained facilities. He also inquired about future capital allocation, M&A opportunities, perceived price elasticity from tariffs, the drivers behind the robust EBITDA performance in the Diversified Americas segment, and sought clarification on the CapEx guidance.

    Answer

    CEO Rory Byrne provided specifics on the deal, noting a $50 million PIK note payable in five years and a five-year rent-free usage agreement for the buyer on two facilities, after which Dole can charge rent or sell the assets, valued around $40 million. He mentioned that with the sale complete, Dole will refresh its capital allocation strategy, considering bolt-on acquisitions and internal projects. Byrne stated that demand has remained strong despite price adjustments. He attributed the Diversified Americas' success to strong performance across its businesses, particularly in South American exports. Finally, he confirmed no material change to the CapEx outlook.

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    Gary Martin's questions to Dole PLC (DOLE) leadership • Q1 2025

    Question

    Gary Martin asked for an overview of Dole's capital allocation policy following the recent refinancing, particularly regarding internal versus external growth initiatives. He also sought clarification on the components driving the like-for-like EBITDA growth in the Diversified Americas segment and requested a specific figure for the incremental CapEx required for the Honduras reinvestment.

    Answer

    CEO Rory Byrne explained that all capital allocation options, including acquisitions, dividends, and internal projects, remain under consideration, but the final strategy is contingent on the outcome of the Fresh Vegetable business sale. For the Diversified Americas segment, he credited the strong like-for-like EBITDA to robust performance in North American distribution and handling businesses, which offset a more normalized export season from South America compared to an exceptional 2024. Byrne also quantified the incremental CapEx for Honduras at approximately $10 million to $12 million above insurance proceeds, which will be used to improve yields and flood protection.

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    Gary Martin's questions to Dole PLC (DOLE) leadership • Q4 2024

    Question

    Gary Martin of Davy inquired about Dole's capital allocation priorities, specifically the balance between continued deleveraging and potential M&A. He also sought color on the causes of profit weakness in the Diversified EMEA segment and asked about demand elasticity risk for high-value products like avocados if tariffs were imposed.

    Answer

    CEO Rory Byrne stated that capital allocation is a high priority, with major decisions pending the outcome of the Fresh Vegetables business disposal. He highlighted a focus on internal development projects across various regions and product lines, which are benchmarked against share buybacks, while noting a valuation gap in the M&A market. For the EMEA segment, Byrne attributed performance variations to the diversity of its businesses and geographies, seeing more opportunity than concern. On avocados, he reiterated that tariffs are less likely on products the U.S. does not produce in significant quantities.

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    Gary Martin's questions to Dole PLC (DOLE) leadership • Q3 2024

    Question

    Gary Martin from Davy asked if a more normalized cherry season and Diversified Americas profitability should be expected for Q4 and into Q1 2025. He also sought details on the supply and demand factors driving the Fresh Fruit segment's outperformance and inquired about the growth potential from the two newly acquired vessels.

    Answer

    COO Johan Linden confirmed a more normalized cherry season is expected, with some volume potentially shifting into the current year due to the timing of the Chinese New Year. He attributed Fresh Fruit's strength to solid banana demand and tight supply from weather events. CEO Rory Byrne added that acquiring the two vessels provides capacity flexibility for dry docking, ensures service levels for retailers, and creates growth opportunities, particularly for avocados from Colombia.

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