Limoneira Company Unveils Strong Fiscal Fourth Quarter and Record-Breaking Full Year 2024 Financial Results
Limoneira Company, a diversified agribusiness specializing in citrus growing, packing, selling, and marketing, along with real estate development operations, has reported its financial results for the fiscal fourth quarter and full year ended October 31, 2024.
Management Comments
Harold Edwards, President and CEO of Limoneira, remarked on the company’s strong performance, highlighting the company’s solid revenue from lemons and a record-breaking avocado harvest of 15.1 million pounds in 2024. “This demonstrates the strength of our agricultural platform and supports our strategy of focusing on the high-value avocado segment,” Edwards stated. He also emphasized the company’s continued commitment to expanding its avocado production, planning an additional 1,000 acres by 2027, which is expected to significantly boost EBITDA. Edwards noted that the company is seeing increased lemon sales in the foodservice and quick-service restaurant sectors and expects further market penetration in fiscal 2025.
Looking forward, Edwards mentioned the potential of the company’s real estate assets and water resources, which will contribute to long-term shareholder value. He also highlighted the ongoing success of the Harvest at Limoneira residential real estate joint venture with the Lewis Group of Companies, as well as the anticipated monetization of water assets in fiscal 2025. The company is exploring strategic alternatives for its assets and will keep shareholders informed if any new developments arise.
Fiscal Year 2024 Fourth Quarter Results
For the fourth quarter of fiscal year 2024, Limoneira reported total net revenue of $43.9 million, up from $41.4 million in the same period last year. Agribusiness revenue increased to $42.5 million from $40.1 million, while other operations revenue was $1.4 million, compared to $1.3 million in Q4 of fiscal year 2023.
Agribusiness revenue for Q4 2024 included $8.4 million in fresh packed lemon sales, down from $11.3 million in the prior year’s quarter. The company sold approximately 470,000 cartons of U.S.-packed fresh lemons at an average price of $17.95 per carton, compared to 550,000 cartons at an average price of $20.39 per carton in Q4 of fiscal year 2023. Brokered lemons and other lemon sales amounted to $14.6 million in Q4 2024, compared to $13.2 million in the same period last year.
Avocado revenue in Q4 2024 reached $8.9 million, driven by the sale of 4.6 million pounds of avocados at an average price of $1.92 per pound, marking a significant increase over the previous year when no avocado revenue was recorded.
Orange revenue was $1.7 million, slightly down from $1.9 million in Q4 2023. Approximately 91,000 cartons of oranges were sold at an average price of $18.99 per carton, compared to 69,000 cartons sold at an average price of $28.32 per carton last year.
Revenue from specialty citrus and other crops dropped to $3.6 million, compared to $6.5 million in the fourth quarter of fiscal 2023. The decrease was primarily due to lower volumes of specialty citrus and wine grapes sold, which led to a decline in wine grape revenue. Specialty citrus revenue was down, with the sale of approximately 8,000 cartons in 2024, compared to 75,000 cartons in the prior year.
Despite a decrease in revenue, total costs and expenses for the quarter decreased to $46.6 million from $51.1 million, helping to narrow the operating loss. The company reported an operating loss of $2.8 million for the quarter, an improvement from the $9.7 million loss in Q4 2023. The net loss applicable to common stock, after preferred dividends, was $2.0 million, or $0.11 per diluted share, compared to a net loss of $3.6 million, or $0.20 per diluted share, in Q4 2023.
Adjusted net loss for diluted EPS in Q4 2024 was $1.6 million, or $0.09 per diluted share, improving from an adjusted net loss of $2.6 million, or $0.15 per diluted share, in the same period last year. Non-GAAP adjusted EBITDA for Q4 2024 was $1.2 million, compared to a loss of $1.3 million in the prior-year quarter.
Fiscal Year 2024 Results
For the full fiscal year 2024, Limoneira posted total net revenue of $191.5 million, up from $179.9 million in the previous year. The increase was driven by higher agribusiness revenues, particularly from avocados, though this was partially offset by lower revenues from lemons and specialty citrus. Operating loss for fiscal year 2024 was $6.2 million, compared to operating income of $10.8 million in fiscal 2023, primarily due to a lower net gain from asset disposals.
Net income applicable to common stock for fiscal year 2024 was $7.2 million, or $0.40 per diluted share, down from $8.9 million, or $0.50 per diluted share, in fiscal 2023. Adjusted net income for diluted EPS in fiscal year 2024 was $11.0 million, or $0.62 per diluted share, reversing a loss of $7.6 million in the previous year.
Balance Sheet and Liquidity
The company ended fiscal year 2024 with net cash provided by operating activities of $17.9 million, a significant improvement from a net outflow of $15.9 million in the prior year. Net cash used in investing activities was $9.2 million, compared to net cash inflows of $90.6 million in fiscal 2023, which included proceeds from the sale of Northern Properties.
Long-term debt as of October 31, 2024, stood at $40.0 million, slightly down from $40.6 million a year earlier. The company’s joint venture with the Lewis Group, Harvest at Limoneira, had cash reserves of $66.9 million as of fiscal year-end.
Real Estate Development and Property Sales
In 2024, the joint venture completed significant lot sales in its residential development, including 121 units in Phase 1 and 554 units in Phase 2. The project is now approved to increase its total residential units from 1,500 to 2,050, which will include 250 additional single-family homes and 300 multi-family units.
Updated Guidance
For fiscal year 2025, Limoneira expects fresh lemon volumes to range between 5.0 million and 5.5 million cartons, with avocado volumes projected at 7.0 million to 8.0 million pounds. The company also anticipates approximately $180 million in proceeds from the Harvest joint venture over the next seven years, with $15 million expected in fiscal 2024.
Looking ahead, Limoneira is optimistic about its EBITDA growth, especially from the planned expansion of avocado production and further gains from asset monetization.
Conference Call Information
The company will hold a conference call on December 23, 2024, at 1:30 pm Pacific Time (4:30 pm Eastern Time) to discuss its financial results. Interested participants can join by calling (877) 407-0789 (U.S.) or (201) 689-8562 (international). A replay will be available through January 6, 2025, by calling (844) 512-2921 (U.S.) or (412) 317-6671 (international), with passcode 13749944.
