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Jan 31, 2022
Limoneira Q1 2022 Earnings Report
Achieved 3% revenue growth driven by increased avocado volume and higher lemon sales, but experienced increased operating loss due to higher costs.
Key Takeaways
Limoneira Company reported a 3% increase in revenue for the first quarter of fiscal year 2022, driven by higher avocado volume and pricing and higher lemon sales. However, the company's operating loss increased due to higher packing costs and third-party grower and supplier costs. The company has updated its full year avocado guidance from 5.0 to 6.0 million pounds to 6.0 to 7.0 million pounds and is raising its cash distribution expectations for Harvest at Limoneira from $80 million to $95 million.
Revenue increased by 3% compared to the same period last year, driven by higher avocado volume and pricing and higher lemon sales.
The company is raising its full year avocado guidance from 5.0 to 6.0 million pounds to 6.0 to 7.0 million pounds.
Lemon demand and pricing were challenged in the first quarter due to industry surplus and unfavorable weather conditions.
The company is raising its cash distribution expectations for Harvest at Limoneira from $80 million to $95 million.
Forward Guidance
The Company believes it will experience improving results in fiscal year 2022 compared to fiscal year 2021 due to its stronger position in retail food and club grocery and growing brokered fruit revenues. The Company continues to expect fresh lemon volumes to be in the range of 4.5 million to 5.0 million cartons for fiscal year 2022. The Company now expects avocado volumes to be in the range of 6.0 million to 7.0 million pounds for fiscal year 2022, compared to previous guidance of 5.0 million to 6.0 million pounds. The Company now expects to receive $95 million, compared to previous expectation of $80 million, from Harvest at Limoneira during the next five fiscal years, beginning in fiscal year 2022.
Positive Outlook
- Stronger position in retail food and club grocery.
- Growing brokered fruit revenues.
- Fresh lemon volumes expected to be in the range of 4.5 million to 5.0 million cartons for fiscal year 2022.
- Avocado volumes expected to be in the range of 6.0 million to 7.0 million pounds for fiscal year 2022.
- Expected to receive $95 million from Harvest at Limoneira during the next five fiscal years, beginning in fiscal year 2022.
Challenges Ahead
- The COVID-19 pandemic continues to affect the Company’s food service business and industry logistics on a global basis.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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