SANTA PAULA, CA - In spite of ongoing hurdles created by the pandemic, Limoneira has announced that the company is still on the path to growth in it’s Third Quarter Fiscal Year 2021 report. Wielding strong fresh lemon utilization and an ongoing digital transformation, the citrus grower has announced plans to increase yields and operational efficiencies while also reducing its water consumption.
“Lemon pricing and fresh utilization were strong for the third quarter, and we are well positioned for solid lemon growth in fiscal year 2022,” Harold Edwards, President and Chief Executive Officer, stated. "Our results were partially offset by the reduced sizing of our avocado fruit due to lack of rainfall. Driven primarily by fresh lemon utilization, we increased operating income by 86 percent during the third quarter even with the widely publicized global logistical delays that are affecting the entire agriculture industry and reduced exports to Asia due to COVID-19. We do believe these logistical challenges will improve in fiscal year 2022, and with the expectation of reduced exports, we are very confident in domestic pricing improvements in fiscal year 2022.”
The report, which recorded financial results for the third fiscal quarter ending July 31, 2021, also showed that the company’s total costs and expenses decreased to $45.8 million, compared to $51.7 million in the third quarter of last fiscal year. According to a press release, its operating income increased from $3.4 million from $1.8 million in the third quarter last fiscal year.
Other highlights include:
- Adjusted EBITDA was $7.8 million in the third quarter of fiscal year 2021, compared to $6.0 million in the same period of fiscal year 2020
- Adjusted net income of $3.7 million or $0.20 per diluted share, compared to the third quarter of fiscal year 2020 of $2.4 million or $0.13 per diluted share
To foster further evolution, Limoneira revealed that it will also be implementing a digital transformation plan that will help increase yields and operational efficiencies. Additionally, it will continue to focus on its real estate projects to create further revenue.
“We are implementing a digital information system we call our ‘Farm to Table via Tablet’ initiative. This innovative program will monitor daily tree health and fruit growth along with tying together the entire distribution chain from tree to customer. This real time information system will combine the entire One World of Fresh Citrus™ worldwide team together on one accessible platform to raise yields and quality while increasing the efficiencies of farming, harvest, packing, and sales,” continued Edwards. “Lastly, our real estate development project, Harvest at Limoneira, continues to perform very well and has now closed 556 lots since inception, including 92 new lot closings in the third quarter of fiscal year 2021. We are confident in the timing of the expected $80 million of cash distributions from Harvest at Limoneira over the next six years beginning in fiscal year 2022. In addition, we believe there is potential upside to our stated cash distributions due to increased number of sellable lots entitled in Harvest at Limoneira as well as the potential opportunity of the recently announced medical campus in our East Area 2 development.”
To read the report in full, click here.
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