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Jul 31, 2024
Limoneira Q3 2024 Earnings Report
Reported a strong third quarter with increased revenue and improved profitability.
Key Takeaways
Limoneira Company reported a 21% increase in net revenue to $63.3 million for the third quarter of fiscal year 2024, driven by strong avocado revenues and improved pricing in fresh lemons and avocados. The company achieved operating income of $9.0 million, a significant improvement compared to the previous year's operating loss of $1.5 million. Increased avocado volume guidance for fiscal year 2024 was also announced.
Net revenues increased by 21% to $63.3 million compared to the prior year.
Operating income reached $9.0 million, a significant improvement from the previous year's operating loss.
Avocado revenues grew by over 300% to $13.9 million.
The company anticipates avocado segment contributing approximately four million to five million pounds in the fourth quarter.
Limoneira
Limoneira
Limoneira Revenue by Segment
Revenue by Segment
Agribusiness Revenue
CapyFin.com Forward Guidance
The Company provided updated guidance for avocado and fresh lemon volumes for fiscal year 2024. Avocado volumes are expected to be in the range of 14.5 million to 15.5 million pounds, while fresh lemon volumes are expected to be in the range of 4.5 million to 5.0 million cartons.
Positive Outlook
- Avocado volumes are expected to be in the range of 14.5 million to 15.5 million pounds for fiscal year 2024, a more than 50% increase compared to prior guidance.
- The company expects to complete the avocado harvest in the fourth quarter with approximately 4.0 million to 5.0 million pounds remaining.
- The company continues to expect to receive total future proceeds of $180 million from Harvest, LLCB II, LLC and East Area II spread out over the next seven fiscal years.
- The Company has 600 acres of non-bearing lemons and avocados 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.
- The company plans to expand its plantings of avocados over the next three years and expects to have an increase in third-party grower fruit.
Challenges Ahead
- Fresh lemon volumes are expected to be in the range of 4.5 million to 5.0 million cartons for fiscal year 2024, compared to previous guidance of 5.0 million to 5.5 million cartons, due to lower fresh utilization from late season rains.
- The lemon harvest for fiscal year 2024 is approximately 85% complete.
- The company expects fiscal year 2025 avocado volume to be lower compared to fiscal year 2024 due to the alternate bearing nature of avocado trees.
- The company believes avocado pricing may be slightly lower compared to the current year pricing environment due to international circumstances.
- Operational results do not take into account expected additional earnings from Harvest at Limoneira.