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Jan 31, 2023
Limoneira Q1 2023 Earnings Report
Reported revenue of $37.9 million, operating income of $25.9 million, and net income of $15.5 million.
Key Takeaways
Limoneira Company reported first quarter fiscal year 2023 financial results with a revenue of $37.9 million. The company's operating income was $25.9 million, driven by a $40.0 million gain on the sale of Northern Properties. Net income applicable to common stock was $15.5 million, or $0.84 per diluted share.
Achieved $37.9 million of revenue in the first quarter despite heavy rainfall delaying lemon and avocado harvests.
Operating income for the first quarter was $25.9 million, compared to a prior-year operating loss of $9.6 million, driven by a $40.0 million gain on the sale of Northern Properties.
Net debt position reduced by 72% from $105.0 million at the end of fiscal year 2022 to $28.9 million at the end of the first quarter of fiscal year 2023.
The company expects total proceeds of $180 million from the sale of six non-strategic assets and has successfully closed on the sale of four of these assets for a total of $130 million over the past six months.
Limoneira
Limoneira
Limoneira Revenue by Segment
Revenue by Segment
Agribusiness Revenue
CapyFin.com Forward Guidance
The Company believes it will experience improving year-over-year results in fiscal year 2023 compared to fiscal year 2022 due to its stronger position in retail food and club grocery.
Positive Outlook
- Expects fresh lemon volumes to be in the range of 5.0 million to 5.4 million cartons for fiscal year 2023.
- Expects avocado volumes to be in the range of 4.0 million to 5.0 million pounds for fiscal year 2023.
- The company expects to receive total proceeds of $115 million from Harvest at Limoneira, LLCB II and East Area II spread out over seven fiscal years, with approximately $8 million received in fiscal year 2022.
- Has 900 acres of non-bearing lemons 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.
- Also expects to have a steady increase in third-party grower fruit.
Challenges Ahead
- The Company’s food service business and industry logistics continue to experience slowdown due to supply chain and inflationary pressures on a global basis.
- Results for the first quarter were impacted by heavy rains in California pushing the initial first quarter avocado harvest and a portion of the lemon harvest into the second quarter.
- Softer pricing for lemons as the markets continue to work through surplus inventory.
- Net cash used in operating activities was $21.2 million, compared to $8.2 million in the prior fiscal quarter
- Adjusted EBITDA was a loss of $7.9 million in the first quarter of fiscal year 2023, compared to a loss of $5.6 million in the same period of fiscal year 2022.