Limoneira Co (LMNR) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Shifts

In This Article:

  • Net Revenue: $191.5 million for fiscal year 2024, a 6% increase from the previous year.

  • Adjusted EBITDA: $26.7 million for fiscal year 2024, compared to a loss of $224,000 in fiscal year 2023.

  • Net Debt: $37.6 million as of October 31, 2024.

  • Agribusiness Revenue: $42.5 million in Q4 2024, up from $40.1 million in Q4 2023.

  • Fresh Packed Lemon Sales: $8.4 million in Q4 2024, down from $11.3 million in Q4 2023.

  • Avocado Revenue: $8.9 million in Q4 2024, with 4.6 million pounds sold.

  • Operating Loss: $2.8 million in Q4 2024, compared to $9.7 million in Q4 2023.

  • Net Loss: $2 million in Q4 2024, compared to $3.6 million in Q4 2023.

  • Adjusted Net Loss Per Share: $0.09 in Q4 2024, compared to $0.15 in Q4 2023.

  • Cash and Cash Equivalents (Joint Venture): $66.9 million as of October 31, 2024, with Limoneira's share approximately $33.5 million.

Release Date: December 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Limoneira Co (NASDAQ:LMNR) achieved a record net revenue of $191.5 million for fiscal year 2024, marking a 6% increase from the previous year.

  • The company successfully sold 15.1 million pounds of avocados, the highest volume in nearly 15 years, validating their strategic expansion in avocado production.

  • Limoneira Co (NASDAQ:LMNR) is experiencing increased penetration in the food service and quick service restaurant channels for its lemon offerings, with expectations for further market penetration in fiscal year 2025.

  • The company's real estate joint venture with Lewis Group continues to perform well, with significant milestones achieved, including the approval to increase residential units from 1,500 to 2,050.

  • Limoneira Co (NASDAQ:LMNR) has reduced its net debt position and is exploring strategic alternatives to maximize stockholder value, indicating a strong financial position and potential for future growth.

Negative Points

  • The company experienced a decrease in fresh packed lemon sales, with a drop from $11.3 million in fiscal year 2023 to $8.4 million in fiscal year 2024, due to lower fresh utilization rates and weather-related delays.

  • Specialty citrus and other crop revenue decreased from $6.5 million in fiscal year 2023 to $3.6 million in fiscal year 2024, primarily due to decreased volume and wine grape revenue.

  • Limoneira Co (NASDAQ:LMNR) reported an operating loss of $6.2 million for fiscal year 2024, compared to an operating income of $10.8 million the previous year, largely due to the net gain on asset disposal.

  • The company anticipates lower avocado volumes in fiscal year 2025 due to the alternate bearing nature of avocado trees, which may impact revenue growth.

  • Despite improvements, the company still faces challenges with weather conditions affecting crop yields and fresh utilization rates, which can impact overall profitability.