The following is a summary of the Limoneira Company (LMNR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Limoneira reported a total net revenue increase of 5% to $39.7 million in Q1 2024 compared to $37.9 million in the same quarter last year.
Agribusiness revenue was $38.3 million, while operations revenue remained consistent at $1.4 million for both periods.
The company reported an operating loss of $7.7 million for Q1 of FY 2024 compared to the previous year's $25.9 million operating income due to the sale of Northern Properties.
Net loss applicable to common stock was $3.7 million, compared to a net income of $15.5 million in Q1 of FY 2023.
Adjusted net loss for diluted EPS was $3.2 million, an improvement from $9.3 million in the same period of FY 2023.
Debt levels as of the end of Q1 2024 were $51.4 million.
Business Progress:
Limoneira is transitioning towards asset-lighter operations to streamline operations, sell non-strategic assets, improve earnings and dividends per share, reduce debt, and boost return on invested capital.
The company plans to increase its avocado production by using its Ventura County land in the next three years due to a predicted opportunity in the American market from April to July.
The company decided to pause the sale of remaining non-strategic assets and stopped pursuing a packinghouse in Chile.
The company anticipates fresh lemon volumes to be in the range of 5 million to 5.5 million cartons and avocado volumes to be in the range of 7 million to 8 million pounds for fiscal year 2024.
Limoneira plans to expand its plantings of avocados over the next three years.
Their long-term growth plan involves pivoting away from the Chilean packing house and toward growing more avocados, as the estimated operating profit per acre for avocados is 3 to 4 times that of lemons.
More details: Limoneira IR
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