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Apr 30, 2024
Limoneira Q2 2024 Earnings Report
Limoneira's financial performance decreased slightly due to decreased lemons and avocados agribusiness revenues, but was offset by increased farm management agribusiness revenues, and the company increased its cash flow projections from the joint venture by 46%.
Key Takeaways
Limoneira Company reported a decrease in total net revenue for the second quarter of fiscal year 2024, with $44.6 million compared to $48.1 million in the same period last year. However, non-GAAP Adjusted EBITDA more than doubled, reaching $16.6 million. The company increased its cash flow projections from its Harvest at Limoneira joint venture by 46% and expects to receive $180 million in total future proceeds.
Closed an additional 554 homesites in Harvest at Limoneira joint venture, completing Phase 2 of the project.
Received approval to increase the total number of entitled lots for Harvest at Limoneira by 550, a 37% increase.
Increased cash flow projections from Harvest at Limoneira by 46%, expecting $180 million in total future proceeds.
Plan to expand avocado plantings by 1,000 acres over the next three years.
Limoneira
Limoneira
Limoneira Revenue by Segment
Revenue by Segment
Agribusiness Revenue
CapyFin.comOther operations Revenue
CapyFin.com Forward Guidance
The company expects fresh lemon volumes to be in the range of 5.0 million to 5.5 million cartons for fiscal year 2024. The company now expects avocado volumes to be in the range of 9.0 million to 10.0 million pounds for fiscal year 2024, compared to previous guidance of 7.0 million to 8.0 million pounds. Looking ahead, the Company is raising its outlook for non-GAAP EBITDA accretion to a range of $45 million to $55 million by fiscal year 2030, up from its previous target of $30 million.
Positive Outlook
- Fresh lemon volumes expected to be in the range of 5.0 million to 5.5 million cartons for fiscal year 2024.
- Avocado volumes expected to be in the range of 9.0 million to 10.0 million pounds for fiscal year 2024.
- Total future proceeds of $180 million expected from Harvest at Limoneira.
- Raising outlook for non-GAAP EBITDA accretion to a range of $45 million to $55 million by fiscal year 2030.
- Plans to significantly expand avocado production by 1,000 acres over the next three years.
Challenges Ahead
- FY 2025 and FY 2026 operational results expected to be similar to FY 2024.
- Decrease in lemons and avocados agribusiness revenues.
- Operating loss for the first six months of fiscal year 2024 was $12.4 million, compared to operating income of $22.0 million in the same period last fiscal year.
- Net income per diluted share for the first six months of fiscal year 2024 was $0.15, compared to net income per diluted share of $0.75 in the same period of fiscal year 2023.
- Total net revenue was $84.3 million, compared to $86.0 million for the same period in fiscal year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income