Dole Food Company has announced improved operating results for 2009, with adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increasing to US$417m, up from US$410m in 2008.
According to the US-based multinational, lower year-end net debt fell to US$1.478bn, down from US$2.113bn in 2008, with the group's leverage ration down to 3.5 times from 5.2 times last year.
For fiscal 2009, revenues decreased 11 per cent to US$6.8bn, primarily due to the fourth quarter 2008 sale of Dole's JP Fresh and Dole France ripening and distribution subsidiaries and the benefit of a 53-week year in 2008 compared with a 52-week year in 2009.
'Dole had another outstanding year in 2009. We continued to build on the strong operating performance achieved in 2008, generating outstanding cash flow, which allowed us to pay down a significant amount of debt,' said group president and CEO David DeLorenzo. 'In addition, we had cash proceeds from asset sales in 2009 totalling approximately US$185m, bringing the two year total for asset sales to over US$400m – while growing EBITDA.'
'We are pleased with the outstanding results achieved in 2009,' he added. 'Our operating results and our recent IPO have greatly strengthened our balance sheet. We are optimistic as we look forward to improving earnings and further reductions in costs and debt in 2010.'
Additionally, the group announced that it had launched amendments to its senior secured credit facilities that it expects will reduce its interest expense, extend its maturities and provide for the redemption of the remaining US$70m principal amount of its senior notes due 2011. This will put Dole's nearest debt maturity in 2013, the group said.
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