Reports Limoneira Company Reports Q1 Fiscal 2025 Financial Results
Limoneira Company (Nasdaq: LMNR), a diversified citrus growing, packing, and marketing company with agribusiness and real estate development operations, has announced its financial results for the first quarter of fiscal year 2025, which ended on January 31, 2025.
Management Comments
Harold Edwards, President and Chief Executive Officer, highlighted the positive impact of the Reports company’s strategic transition toward an asset-lighter model and revenue optimization. Despite a temporary oversupply in the lemon market affecting revenue, the company reported reduced operating expenses and overall financial Reports improvements.
Edwards emphasized Limoneira’s multi-faceted strategy, which includes land and water asset monetization, increased avocado production, and citrus market expansion, including quick-serve restaurant partnerships. These initiatives have reinforced the company’s financial Reports stability and demonstrated its ability to navigate market fluctuations.
He also noted that the Reports company’s strategic evaluation process is providing valuable insights to enhance operational efficiency. Limoneira is repositioning its farm management services to function as a leading agricultural technology partner, expanding its reach and fostering industry collaboration. Additionally, the company’s water monetization efforts have gained momentum, exemplified by three recently announced transactions, with more anticipated throughout the year. Looking forward, Limoneira expects growth through third-party lemon sourcing, continued avocado production expansion, and further monetization of water and real estate assets.
Fiscal Year 2025 First Quarter Financial Results
For the first quarter of fiscal year 2025, Limoneira reported total net revenue of $34.3 million, compared to $39.7 million in the same quarter of fiscal year 2024. Reports Agribusiness revenue stood at $32.9 million, down from $38.3 million, while revenue from other operations increased slightly to $1.5 million from $1.4 million.
Fresh packed lemon sales contributed $21.2 million, compared to $23.9 million in the prior year’s quarter. The company sold approximately 1,147,000 cartons of fresh lemons at an average price of $18.44 per carton, down from 1,137,000 cartons at $21.06 per carton in the previous year. Brokered and other lemon sales totaled $2.2 million, compared to $2.9 million.
Limoneira recorded $162,000 in avocado revenue, marking an increase from no revenue in the first quarter of fiscal year 2024 due to the timing of harvest. Approximately 73,000 pounds of avocados were sold at an average price of $2.25 per pound.
Orange revenue rose to $1.6 million, up from $1.1 million in the previous year. The company sold approximately 75,000 cartons of oranges at an average price of $20.91 per carton, compared to 80,000 cartons at $14.26 per carton in the first quarter of fiscal year 2024.
Specialty citrus and wine grape revenue totaled $0.5 million, down from $1.1 million due to the timing of harvest. No wine grape revenue was recognized in the first quarter of fiscal year 2025, compared to $0.6 million in the prior year.
Farm management revenue was $1.2 million, compared to $2.0 million, reflecting strategic adjustments based on weather and crop conditions.
Total costs and expenses declined to $39.7 million from $47.5 million, contributing to an improved operating loss of $5.3 million, compared to $7.7 million in the previous year.
The company reported a net loss of $3.2 million, or $0.18 per diluted share, compared to a net loss of $3.7 million, or $0.21 per diluted share, in the same period of fiscal year 2024.
Adjusted net loss for diluted EPS improved to $2.5 million ($0.14 per share) from $3.2 million ($0.18 per share) in the prior year. Adjusted EBITDA showed a loss of $2.3 million, compared to a loss of $4.8 million in the first quarter of fiscal year 2024.
Balance Sheet and Liquidity
Net cash used in operating activities was $12.9 million, compared to $10.3 million in the prior year. Investing activities used $3.5 million, up from $1.6 million, while financing activities provided $14.5 million, compared to $8.8 million.
As of January 31, 2025, long-term debt stood at $57.9 million, compared to $40.0 million at the end of fiscal year 2024. Net debt, after accounting for $1.1 million in cash on hand, was $56.8 million. Additionally, Limoneira’s real estate joint venture with The Lewis Group of Companies had $62.4 million in cash and equivalents.
Real Estate Development and Water Transactions
In October 2023, Limoneira’s joint venture completed Phase 1 lot sales. In April 2024, it closed sales for 554 residential units in Phase 2, bringing total sales to 1,261 units. In May 2024, Santa Paula City Council approved an expansion of the development, increasing residential units from 1,500 to 2,050, with 250 additional single-family homes and a separate project for 300 multi-family rental homes.
In January 2025, Limoneira sold water pumping rights in the Santa Paula Basin for $30,000 per acre-foot, generating $1.7 million in total proceeds and recording a $1.5 million gain.
Fiscal Year 2025 Guidance
Limoneira projects fresh lemon volumes between 5.0 million and 5.5 million cartons and avocado volumes between 7.0 million and 8.0 million pounds for fiscal year 2025. The company anticipates $180 million in proceeds from its real estate developments over seven years, with approximately $15 million received in fiscal year 2024.
Additionally, 1,000 acres of non-bearing lemons and avocados are expected to reach full bearing over the next four to five years, fueling organic growth. The company also plans to expand avocado plantings and increase third-party lemon sourcing.
Looking ahead, Limoneira forecasts strong EBITDA growth, supported by an expansion of avocado production by 1,000 acres through fiscal year 2027. Although 2025 avocado volume may be lower due to the alternate bearing cycle, the company remains confident in its long-term growth potential. Future financial performance will also benefit from anticipated gains from asset monetization.
