Limoneira Q4 2023 Earnings Report
Key Takeaways
Limoneira Company reported a 4% increase in total net revenue for the fourth quarter of fiscal year 2023, reaching $41.4 million compared to $39.7 million in the previous year. The company achieved improved fresh lemon pricing and growth in brokered lemon sales, alongside progress in monetizing non-strategic assets.
Total net revenue increased by 4% to $41.4 million compared to the previous fiscal year.
Fresh lemon pricing improved year-over-year to the highest level since 2019.
Brokered lemons and other lemon sales grew year-over-year for the second quarter in a row.
Farm management revenues were $3.1 million.
Limoneira
Limoneira
Limoneira Revenue by Segment
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. Avocado volumes are expected to be in the range of 7.0 million to 8.0 million pounds for fiscal year 2024.
Positive Outlook
- Fresh lemon volumes are expected to be in the range of 5.0 million to 5.5 million cartons for fiscal year 2024.
- Avocado volumes are expected to be in the range of 7.0 million to 8.0 million pounds for fiscal year 2024.
- The Company now expects to receive a 14% increase in total proceeds of $131 million from Harvest at Limoneira, LLCB II and East Area II spread out over nine fiscal years, with approximately $8 million received in fiscal year 2022.
- The Company has 700 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 also expects to have a steady increase in third-party grower fruit.
Challenges Ahead
- The Company’s food service business and industry logistics continue to experience slowdown due to supply chain and inflationary pressures on a global basis.
- The Company expects fresh lemon volumes to be in the range of 5.0 million to 5.5 million cartons for fiscal year 2024.
- Avocado volumes are expected to be in the range of 7.0 million to 8.0 million pounds for fiscal year 2024.
- Rising interest rates this past year caused a temporary slowdown in our Harvest at Limoneira project.
- The Company plans to expand its plantings of avocados over the next three years and also expects to have a steady increase in third-party grower fruit.