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Jan 31, 2021
Limoneira Q1 2021 Earnings Report
Reported financial results for the first quarter ended January 31, 2021.
Key Takeaways
Limoneira Company reported a decrease in total net revenue to $38.3 million, compared to $41.7 million in the first quarter of the previous fiscal year. The decrease was primarily due to lower fresh lemon sales, which were impacted by COVID-19 related food service closures. Despite the revenue decrease, the company saw improved cost structure and cash flow compared to the same period last year.
Achieved record first quarter lemon volume despite the COVID-19 pandemic.
Experienced solid specialty citrus revenues.
Improved cost structure and cash flow compared to the same period last year.
Closed 44 Harvest at Limoneira lots during the first quarter of fiscal 2021.
Limoneira
Limoneira
Forward Guidance
Due to the ongoing impact of the COVID-19 pandemic on the food service business, the Company is not providing lemon guidance at this time. Management anticipates strong orange and avocado revenue in fiscal 2021 and expects improving results compared to last year in the second, third, and fourth quarters of fiscal 2021. The Company expects to receive $80 million from Harvest at Limoneira during the next six fiscal years, beginning in fiscal 2022.
Positive Outlook
- Orange and avocado revenue in fiscal 2021 will be strong due to market factors and positive initial crop indicators.
- Improving results compared to last year during the second, third and fourth quarters of fiscal 2021.
- Stronger position in grocery compared to last year.
- Food service and export markets are expected to recover.
- Cost control measures continue to show improvement.
Challenges Ahead
- COVID-19 pandemic continues to affect the Company’s food service business on a global basis.
- Uncertainty regarding the full impact and duration of the COVID-19 pandemic.
- Potential for additional impacts from the current COVID-19 pandemic.
- Changes in laws, regulations, rules, quotas, tariffs and import laws.
- Weather conditions that affect production, transportation, storage, import and export of fresh product.