On The Market Citrus Fruits Company Limoneira Beats On Q4 Revenue & Posts EPS In-Line: Details

Limoneira Co LMNR reported a Q4 FY23 revenue increase of 4% to $41.4 million, beating the consensus of $37.8 million.

Agribusiness revenue rose to $40.1 million from $38.2 million a year ago. in the quarter.

In Q4, the company sold around 550,000 cartons of U.S. packed fresh lemons at a $20.39 average price per carton. 

Also, brokered lemons and other lemon sales stood at $14.4 million in the quarter. The company witnessed no avocado revenue in the quarter.

LMNR reported an operating loss of $(9.7) million vs. a loss of $(1.9) million a year ago due to higher costs and expenses.

Adjusted EBITDA loss came in at $(1.3) million in Q4 vs. a loss of $(3.8) million the prior year.

Adjusted EPS loss of $(0.15) came in line with the consensus. 

For FY23, net cash used in operating activities stood at $(15.9) million; as of October 31, 2023, cash in hand stood at $3.6 million.

Outlook: LMNR expects food service business and industry logistics to continue to see a slowdown due to supply chain and inflationary pressures on a global basis.

LMNR projects fresh lemon volumes of 5.0 million to 5.5 million cartons and avocado volumes of 7.0 million to 8.0 million pounds in FY24.

The company expects an estimated 700 acres of non-bearing lemons and avocados to become full-bearing over the next four to five years.

Harold Edwards, President and Chief Executive Officer,said, "We also anticipate selling the remaining two identified non-strategic assets this next fiscal year for an expected $50 million in proceeds.....We have adjusted our cash flow projections to account for increased sales prices and now expect to receive $131 million in total proceeds spread out over nine fiscal years, with approximately $8 million received in fiscal year 2022 and $3 million expected in fiscal year 2024."

Earlier this month, the Board of Directors commenced a process to explore potential strategic alternatives aimed at maximizing value for stockholders. 

Price Action: LMNR shares closed higher by 1.32% at $19.19 on Thursday.

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