Total Produce's Dole investment sees fall in earnings

19th Nov 2018 14:32

(Sharecast News) - Fresh produce company Total Produce updated the market on its Dole Food Company investment on Monday, having completed the acquisition of 45% of the issued share capital of Dole on 31 July.The AIM-traded firm said Dole had recently finalised its results for the third quarter period ending 6 October, prepared under US GAAP.It said the S-1 adjusted EBITDA was $45.4m, compared to $50.1m for the same period in 2017, which reflected a $7.4m EBITDA reduction in fresh vegetables.In addition, during the third quarter, Dole sold its corporate headquarters for $50.0m and recognised a net gain of $7.3m, which was not included in the adjusted EBITDA."Dole Fresh Fruit has performed strongly," the Total Produce board said in its statement."Dole Fresh Vegetables has been affected by an industry-wide safety notice, not directly linked to Dole, and an oversupply resulting in lower pricing."As previously announced, this also reduced Dole's first-half EBITDA by $30m, prior to the investment by Total Produce."