On September 9, 2024, Limoneira Co (LMNR, Financial) released its 8-K filing for the third quarter of fiscal year 2024. Limoneira Co, an agribusiness company with segments including Fresh Lemons, Lemon Packing, Avocados, and Other Agribusiness, reported significant growth in net revenues and operating income.
Q3 FY2024 Financial Highlights
Limoneira Co reported total net revenue of $63.3 million for Q3 FY2024, a 21% increase from $52.5 million in the same quarter last year. However, this figure fell slightly short of the analyst estimate of $63.57 million. The company achieved an operating income of $9.0 million, a significant turnaround from an operating loss of $1.5 million in Q3 FY2023.
Net income applicable to common stock was $6.5 million, translating to $0.35 per diluted share, surpassing the analyst estimate of $0.31 per share. This compares favorably to a net loss of $1.3 million, or $0.07 per diluted share, in the same period last year.
Segment Performance
The Fresh Lemons segment, which generates the maximum revenue for Limoneira Co, reported $25.8 million in sales, up from $24.2 million in Q3 FY2023. The Avocados segment saw a remarkable revenue increase of over 300%, reaching $13.9 million compared to $3.5 million in the same quarter last year. This growth was driven by the sale of approximately 8,855,000 pounds of avocados at an average price of $1.57 per pound, compared to 2,822,000 pounds at $0.99 per pound in Q3 FY2023.
Key Financial Metrics
| Metric | Q3 FY2024 | Q3 FY2023 |
|---|---|---|
| Total Net Revenue | $63.3 million | $52.5 million |
| Operating Income | $9.0 million | $(1.5) million |
| Net Income Applicable to Common Stock | $6.5 million | $(1.3) million |
| Diluted EPS | $0.35 | $(0.07) |
Management Commentary
"We are extremely pleased with the overall performance of our business this quarter, in particular our avocados experienced robust demand and favorable pricing dynamics. This strong market response positions us to achieve record avocado revenue this fiscal year," said Harold Edwards, President and Chief Executive Officer of Limoneira Co.
Balance Sheet and Cash Flow
As of July 31, 2024, Limoneira Co reported total assets of $307.3 million, up from $301.2 million at the end of fiscal year 2023. The company had a net debt position of $39.6 million, with long-term debt standing at $40.0 million. Net cash provided by operating activities was $11.3 million for the first nine months of FY2024, compared to net cash used in operating activities of $12.6 million in the same period last year.
Future Outlook
Limoneira Co has increased its avocado volume guidance for FY2024 to a range of 14.5 million to 15.5 million pounds, up from the previous guidance of 9.0 million to 10.0 million pounds. The company also expects fresh lemon volumes to be slightly lower than previously anticipated, in the range of 4.5 million to 5.0 million cartons.
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Explore the complete 8-K earnings release (here) from Limoneira Co for further details.
