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Apr 30, 2022
Limoneira Q2 2022 Earnings Report
Reported a 4% increase in revenue compared to the previous year, driven by higher avocado and orange revenues.
Key Takeaways
Limoneira Company reported a revenue increase driven by avocados and oranges. They are expanding One World of Citrus and exploring the sale of certain assets for an "Asset Lighter" business model.
Revenue increased by 4% in Q2 2022 compared to the previous year, driven by higher avocado and orange revenues.
Avocado segment outperformed expectations with pricing over 50% higher year-over-year.
Announced fallowing program in Yuma, AZ, saving over 1.3 billion gallons of water and increasing operating results by $1.0 million.
Strategic plan formulated to expand One World of Citrus, increase avocado plantings, and sell certain assets to increase cash flow.
Forward Guidance
The Company expects 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.
Positive Outlook
- Fresh lemon volumes are expected to be in the range of 4.5 million to 5.0 million cartons for fiscal year 2022.
- Avocado volumes are expected to be in the range of 6.0 million to 7.0 million pounds for fiscal year 2022.
- Strong avocado profitability is expected for the third quarter of fiscal year 2022.
- Cash distributions are expected to be $95 million from Harvest at Limoneira during the next five fiscal years, beginning in fiscal year 2022.
- 200 of the 1,000 acres are expected to become full bearing in fiscal year 2022.
Challenges Ahead
- COVID-19 pandemic continues to affect the Company’s food service business and industry logistics on a global basis.
- The resurgence of COVID-19 during the first half of this year pressured lemon prices.
- Lemon pricing remained challenged in the second quarter as the domestic lemon market works through a surplus of inventory.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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