Limoneira Q4 2020 Earnings Report
Key Takeaways
Limoneira Company reported a decrease in total net revenue for the fourth quarter of fiscal year 2020 to $29.8 million, compared to $36.5 million in the fourth quarter of the previous fiscal year, with a net loss of $7.6 million, compared to a net loss of $3.2 million in the same period of fiscal year 2019.
Achieved record lemon volume in fiscal 2020.
Harvest at Limoneira real estate development project exceeded expectations.
Domestic lemon volume increased due to focus on grocery retail.
Pricing was lower than expected due to reduced exports to Asia related to the COVID-19 pandemic.
Limoneira
Limoneira
Limoneira Revenue by Segment
Forward Guidance
The COVID-19 pandemic continues to affect the Company’s food service business on a global basis. The Company believes it is prudent to not provide lemon guidance at this time until the COVID-19 vaccine is widely distributed. Management believes orange and avocado revenue in fiscal 2021 will be strong due to market factors and positive initial crop indicators. The Company expects to receive $80 million from Harvest at Limoneira during the next six fiscal years, beginning in fiscal 2022.
Positive Outlook
- Orange and avocado revenue in fiscal 2021 will be strong due to market factors and positive initial crop indicators.
- The Company expects to receive $80 million from Harvest at Limoneira during the next six fiscal years, beginning in fiscal 2022.
- Additional 1,200 acres of non-bearing lemons estimated to become full bearing over the next four years.
- Company expects 200 of the 1,200 acres to become full bearing in fiscal year 2021.
- Limoneira intends to plant an additional 250 acres of lemons in the next two years that it believes will further build its long-term pipeline of productive acreage.
Challenges Ahead
- COVID-19 pandemic continues to affect the Company’s food service business on a global basis.
- Company believes it is prudent to not provide lemon guidance at this time until the COVID-19 vaccine is widely distributed.