SANTA PAULA, CA - Financial results from Limoneira Company came through, and the report contained some big numbers. The company reported it achieved $37.9 million in revenue in its Q1 Fiscal 2023. Limoneira also noted it sold some of its non-strategic assets, raising total expected proceeds by $30 million to $180 million.
“We ended the first quarter with the announced closing of our Northern Properties sale for approximately $99 million in net cash proceeds. The proceeds were used to significantly reduce our net debt position by 72 percent from year-end 2022 to $28.9 million,” Harold Edwards, President and Chief Executive Officer, stated. “We now expect total proceeds of $180 million from the sale of our identified six non-strategic assets and have successfully closed on the sale of four of these assets for a total of $130 million over the past six months. We have made tremendous progress in a short time, advancing our strategy to monetize certain non-strategic assets, expand our One World of Citrus initiative, and execute on Harvest at Limoneira. Management will be meeting with our Board of Directors this month for our annual strategic planning session to implement a new strategic capital allocation plan.”
According to the release, the company recognized $1.2 million of orange revenue in the first quarter of fiscal year 2023, compared to $0.9 million in the same period last year. Specialty citrus and other crops revenue was $1.2 million for Q1, compared to $0.9 million in the same period last year. Approximately 1,308,000 cartons of U.S. packed fresh lemons were sold in aggregate at an $18.88 average price per carton, reaching $24.7 million in fresh lemon sales.
Due to heavy rainfall that occurred during the first quarter of fiscal year 2023, the timing for avocado harvest was delayed. However, the company recognized $0.8 million of avocado revenue on approximately 365,000 pounds sold at a $2.10 average price per pound.
“Results for the first quarter were impacted by heavy rains in California pushing the initial first quarter avocado harvest and a portion of the lemon harvest into the second quarter, as well as softer pricing for lemons as the markets continue to work through surplus inventory,” Edwards continued. “We do not expect damage to our crops from the rain and fully expect to recoup the delayed revenue in the second and third quarters, keeping our full year 2023 volume guidance intact. Additionally, we expect pricing for fresh lemon cartons to increase in the second half of the fiscal year.”
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