Limoneira Co. quarterly results show rise in total net revenue

Santa Paula, Calif.-based Limoneira Co. has reported that total net revenue for the quarter ending April 30 was $48.1 million, up from $46.8 million for the same quarter a year ago.

“We decreased our net debt position by 70% since the beginning of fiscal 2023, driven by our strategic shift towards our higher margin, ‘asset-lighter’ business model,” Harold Edwards, president and CEO, said in a news release. “We now expect total proceeds of $180 million from the sale of our identified six non-strategic assets and have successfully closed on the sale of four of these assets for a total of $130 million over the past nine months.

"We have made tremendous progress in a short time, advancing our strategy to monetize certain non-strategic assets, expand our One World of Citrus initiative and execute on Harvest at Limoneira," he continued. "We expect the transition to an ‘asset-lighter’ business model to be completed in the next 12 months.”

Results for the second quarter ending April 30 were affected in a few of the company’s growth areas by the highly publicized heavy rains in California that delayed a portion of the lemon harvest into the third quarter, Edwards said in the release. In addition, softer pricing for lemons and avocados was a reality as markets continue to work through surplus inventory, he said.

“Even with the recent rains, we continue to expect to achieve our full year fiscal 2023 lemon volume guidance,” Edwards said in the release. “In addition, we are seeing increased interest in home sales for the residential development of our East Area I real estate development project, Harvest at Limoneira.”

Fiscal year second quarter 2023 results

For the second quarter of fiscal year 2023, the company reported total net revenue of $48.1 million, compared with total net revenue of $46.8 million the same quarter the previous year.

Agribusiness revenue increased to $46.7 million, compared with $45.4 million in the second quarter a year ago, the release said. Agribusiness revenue for the second quarter of fiscal year 2023 includes $26.6 million in fresh lemon sales, compared with $27.3 million of fresh lemon sales a year ago.

Lemon revenues in the second quarter of fiscal year 2023 included settlement proceeds of $1.5 million allocated to lemons, the release said. Approximately 1.547 million cartons of U.S. packed fresh lemons were sold in aggregate during the second quarter of fiscal year 2023 at a $17.23 average price per carton, compared with approximately 1.552 million cartons sold at a $17.57 average price per carton during the second quarter of fiscal year 2022.

Of the 1.547 million and 1.552 million cartons of U.S. packed fresh lemons sold during the second quarter of fiscal years 2023 and 2022, 49% and 51%, respectively, were procured from third-party growers, the release said.

Limoneira recognized $3.6 million of avocado revenue in the second quarter of fiscal year 2023, similar to the same period last fiscal year. Avocado revenues in the second quarter of fiscal year 2023 included settlement proceeds of $2.4 million allocated to avocados, the release said.

Approximately 900,000 pounds of avocados were sold in aggregate during the second quarter of fiscal year 2023 at a $1.30 average price per pound, compared to approximately 1.9 million pounds sold at a $1.90 average price per pound during the second quarter of fiscal year 2022, the release said.

Limoneira reported $1.4 million of orange revenue in the second quarter of fiscal year 2023, compared with $2.6 million in the same period of fiscal year 2022. Approximately 88,000 cartons of oranges were sold during the second quarter of fiscal year 2023 at a $15.72 average price per carton, compared with approximately 328,000 cartons sold at a $7.98 average price per carton during the second quarter of fiscal year 2022, according to the release.

Specialty citrus and other revenue was $2.4 million for the second quarter of fiscal year 2023, compared with $1.4 million in the same period of fiscal year 2022, according to the release.

Total costs and expenses for the second quarter of fiscal year 2023 were $51.9 million, compared with $44.2 million in the second quarter of last fiscal year. The increase of $7.8 million was primarily due to the Cadiz Ranch asset disposal, the release said.

In April 2023, the company determined that citrus farming operations were economically unviable on 670 acres of leased agricultural land at the Cadiz Ranch. As a result, the company said it ceased farming operations, disposed of the related property, plant and equipment and recorded a loss on disposal of assets of $9 million as of April 30, 2023.

Operating loss for the second quarter of fiscal year 2023 was $3.9 million, compared with operating income of $2.6 million in the second quarter of the previous fiscal year, the release said.

Net loss applicable to common stock, after preferred dividends, for the second quarter of fiscal year 2023 was $1.7 million, compared with net income applicable to common stock of $1.4 million in the second quarter of fiscal year 2022, the release said.