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Apr 30, 2025
Limoneira Q2 2025 Earnings Report
Limoneira reported a net loss in Q2 2025 amid lower lemon sales, while avocado pricing remained strong.
Key Takeaways
The company faced pricing pressure in lemons due to an oversupplied market, resulting in lower revenue and a net loss. However, strong performance in avocados and real estate monetization initiatives provided some offset.
Total revenue declined to $35.1M, primarily due to lower lemon sales volume and pricing.
The company reported a net loss of $3.5M and an adjusted EPS of $(0.17).
Avocado sales remained strong, driven by favorable pricing despite lower volumes.
Limoneira announced a strategic merger of citrus sales with Sunkist to achieve $5M in annual cost savings.
Revenue by Segment
Forward Guidance
Limoneira expects fresh lemon volume to range between 4.5 to 5.0 million cartons and avocado volumes between 7.0 to 8.0 million pounds for FY2025, with plans to expand avocado acreage and enhance real estate monetization.
Positive Outlook
- Avocado volume expected to reach up to 8.0 million pounds.
- $5M annual cost savings expected from Sunkist merger starting FY2026.
- 700 acres of non-bearing avocado trees maturing over 4-5 years.
- Phase 3 of real estate development could accelerate.
- Expected cash flow from Harvest project over next 5 years.
Challenges Ahead
- Lemon pricing remains under pressure from oversupply.
- Operating loss persists despite cost reductions.
- Lower equity earnings from real estate compared to last year.
- Avocado volume for FY25 to be lower than FY24 due to alternate bearing.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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