Limoneira Co. notes seasonally increased lemon pricing in results
Santa Paula, Calif.-based Limoneira Co. reported financial results for the fiscal fourth quarter and full year ended Oct. 31 that reflected improved lemon pricing compared with a year ago.
“I am pleased with our performance in the fiscal year 2023 as we achieved our full year avocado and revised lemon volume guidance despite harsh weather conditions and softer pricing throughout most of the year,” company President and CEO Harold Edwards said in a news release. “We ended the year with fresh lemon pricing improving year-over-year in the seasonally soft fourth quarter to the highest level since 2019. Additionally, our company’s strategic shift towards an 'asset-lighter' business model progressed this year and is reflected in our latest results with brokered lemons and other lemon sales growing year-over-year for the second quarter in a row in the fourth quarter and our farm management revenue reaching close to $10 million this fiscal year. “
Edwards said in the late December release that the company made progress monetizing or eliminating certain nonstrategic assets, with the sale of its Northern Properties for $98 million in net cash proceeds, extending a waterfallowing program in Yuma, Ariz., for expected annual proceeds of $1.3 million and exiting its unprofitable farming operations in Cadiz.
“All of these actions have positioned our company to be in a much stronger financial position with our balance sheet rightsized and our year-end net debt position at the lowest level since becoming a publicly traded company,” Edwards said. “This has led us to commence the exploration of a range of strategic alternatives that management and the board believe may maximize value for our stockholders.”
Results
For the fourth quarter of fiscal year 2023, total net revenue increased 4% to $41.4 million for the company, according to the release. Agribusiness revenue was $40.1 million, compared with $38.2 million in the fourth quarter of last fiscal year, the release said.
Agribusiness revenue in the fourth quarter of fiscal year 2023 includes $11.3 million in fresh lemon sales, compared with $13.1 million of fresh lemon sales during the same period of fiscal year 2022, the company said.
Approximately 550,000 cartons of U.S. packed fresh lemons were sold in aggregate during the fourth quarter of fiscal year 2023 at a $20.39 average price per carton, compared with approximately 680,000 cartons sold at a $19.33 average price per carton during the fourth quarter of fiscal year 2022, the release said.
Brokered lemons and other lemon sales were $14.4 million and $12.7 million in the fourth quarter of fiscal years 2023 and 2022, respectively.
Total costs and expenses in the fourth quarter of fiscal year 2023 were $51.1 million, compared with $41.5 million in the fourth quarter of last fiscal year. The increase of $9.6 million was primarily due to farm management costs expensed in fiscal year 2023 but capitalized as cultural costs in fiscal year 2022 and decreased gain on asset disposals, the release said.
Operating loss for the fourth quarter of fiscal year 2023 was $9.7 million, compared with an operating loss of $1.9 million in the fourth quarter of the previous fiscal year, primarily due to increased costs and expenses, the release said.
For the fiscal year ended Oct. 31, 2023, the release said Limoneira revenues were $179.9 million, compared with $184.6 million in fiscal year 2022. Operating income for fiscal year 2023 was $10.8 million, compared with operating income of $2.2 million in the prior fiscal year. Net income applicable to common stock was $8.9 million for the fiscal year 2023, compared with a net loss applicable to common stock of $737,000 for the fiscal year 2022.
Limoneira has 700 acres of nonbearing lemons and avocados estimated to become full bearing over the next four to five years, which the company expects will enable strong organic growth in the coming years, the release said. Additionally, the company plans to expand its plantings of avocados over the next three years, and it expects to have a steady increase in third-party grower fruit, according to the release.
