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Earnings fell 9% for the third quarter at fresh produce supplier Dole, after an oversupply resulted in lower pricing.
The California-headquartered producer saw EBITDA slip 9.3% to US$45.4m for the three months ended 6 October 2018.
The fall from US$50.1m EBITDA the previous year was driven by a US$7.4m decline in earnings in the fresh vegetable category.
Dole Fresh Vegetables was impacted by an “industry-wide safety notice” and the oversupply which reduced prices, the company said.
The pressure on pricing had previously pulled down earnings for the first-half of 2018 down by $30m, it said.
The results come three months after UK-listed supplier Total Produce (TOT) completed the acquisition of a 45% stake in the fruit and vegetable group.
The $300m investment was cleared in July, after purchasing the stake from owner David Murdock.
The deal, which was first agreed in February, was completed today following approval from the European Commission.
The commission approved the deal on the condition that Dole will divest its Swedish bagged salad business, Saba Fresh Cuts AB.
Dole added that during the third quarter it sold its corporate headquarters for $50m, and recognised a net gain of $7.3m which was not included in the results.
Total Produce itself posted a rise in first half sales and EBITDA despite the negative impact of currencies and “unusual” weather patterns in Europe.
Revenues for the six months to 31 June were up 1.8% to €2.2bn, benefitting from the contribution of acquisitions made in the past eighteen months.
Morning update
Private label hygiene and cleaning product manufacturer McBride (MCB) has completed the £12.5m sale of its personal care liquids business to Royal Sanders Group.
Funds from the deal, initially announced on 3 July, will be used to pay down the group’s net debt and transaction costs.
In the twelve months to 30 June, the disposed business comprised of two manufacturing sites at Bradford, UK and Leper, Belgium and generated revenues of £56.2m with an adjusted operating loss of £1.5m.
“With the sale of the European personal care liquids business, the group is now a focused Household business with a clear strategy to deliver sustainable profitable growth,” commented chief executive Rik De Vos.
“The transaction also enables colleagues working at the Bradford, UK and Ieper, Belgium sites to develop as part of a dedicated personal care manufacturer of greater scale and I would like to personally thank them for their efforts within McBride and wish them every success for the future.”
In July, McBride issued a profit warning to say it would fall behind targets after a slump in half-year sales.
Sucralose giant Tate & Lyle (TATE) has appointed Warren Tucker as a non-executive director and member of its audit, remuneration and nominations committees.
Tucker adds the role to non-executive directorships at Reckitt Benckiser Group and Thomas Cook Group, where he is the chair of its remuneration committee.
The chartered accountant served as CFO at defence manufacturer Cobham until 2013, when he co-led the company through a period of organic growth. This came after senior finance roles at Cable & Wireless and British Airways.
“I am delighted that Warren has agreed to join the board,” said Gerry Murphy, chairman of Tate & Lyle.
“His finance background and significant experience of strategy, acquisitions and expansion into developing markets, will be of significant benefit to the Board.”
The FTSE 100 has opened in the green, jumping 0.5% as the weak value of the pound helped the market.
The early risers this morning include Gusbourne (GUS), up 2.8% to 79.7p, Premier Foods (PFD), up 2.3% to 38.2p, Fevertree Drinks (FEVR), up 1.3% to 2,923p.
The fallers include Hilton Food Group (HFG), down 4.7% to 900p, Ocado Group (OCDO), down 3.1% to 744.6p, and Coca-Cola HBC (CCH), down 1.3% to 2,269p.
This week in the city
Aside from the inevitable Brexit drama, this week will see another batch of corporate updates to keep investors interested.
Tomorrow, catering giant Compass Group (CPG) will deliver its full-year figures, but after a disappointing first-half margins, the group said it is expecting to show modest progression.
The following day, Upper Crust owner SSP Group (SSP) will unveil its final-year results, alongside pub group Marston’s (MARS).
On Wednesday, Malibu maker Pernod Ricard will also be hosting its Annual General Meeting.
On Thursday, Naked Wines is once again expected to be at the centre of any of Rowan Gormley’s successes, as Majestic Wine (WINE), issues its half-year figures.
Investec predicts the wine wholesaler will see a jump in sales, although adjusted profits could drop by £4.5m.
Elsewhere in booze, Remy Cointreau will be issuing its interim figures earlier that day. Thursday will also see pub group Mitchell & Butler update its investors with its full-year results.
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