Oct 31, 2022

Limoneira Q4 2022 Earnings Report

Reported an increase in revenue and a reduced operating loss compared to the same quarter of the previous year.

Key Takeaways

Limoneira Company reported an 18% increase in total net revenue for the fourth quarter of fiscal year 2022, reaching $39.7 million. The company's operating loss improved to $1.9 million, and the net loss applicable to common stock was $2.8 million, or $0.16 per diluted share.

Total net revenue increased by 18% to $39.7 million compared to the previous year.

Agribusiness revenue was $38.2 million, up from $32.3 million in the prior year.

Operating loss improved to $1.9 million from $6.5 million in the fourth quarter of the previous fiscal year.

Net loss applicable to common stock was $2.8 million, compared to $5.0 million in the same period last year.

Total Revenue
$39.7M
Previous year: $33.5M
+18.4%
EPS
-$0.32
Previous year: -$0.28
+14.3%
Gross Profit
-$1.83M
Previous year: -$2.07M
-11.5%
Cash and Equivalents
$857K
Previous year: $439K
+95.2%
Total Assets
$369M
Previous year: $392M
-6.1%

Limoneira

Limoneira

Limoneira Revenue by Segment

Forward Guidance

The Company believes it will experience improving year-over-year results in fiscal year 2023 compared to fiscal year 2022 due to its stronger position in retail food and club grocery.

Positive Outlook

  • The Company expects fresh lemon volumes to be in the range of 5.0 million to 5.4 million cartons for fiscal year 2023.
  • Avocado volumes are expected to be in the range of 4.0 million to 5.0 million pounds for fiscal year 2023.
  • The company now expects to receive an over 20% increase in total proceeds of $115 million from Harvest at Limoneira and the addition of LLCB II and East Area II spread out over seven fiscal years, with approximately $8 million received in fiscal year 2022.
  • The Company has an additional 1,000 acres of non-bearing lemons estimated to become full bearing over the next four to five years, which enables the Company to achieve strong organic growth for many years to come.
  • The Company expects 200 of the 1,000 acres to become full bearing in fiscal year 2023.

Challenges Ahead

  • The Company’s food service business and industry logistics continue to experience slowdown in its supply chain.
  • The Company’s food service business and industry logistics continue to experience inflationary pressures on a global basis.