Limoneira Sees Substantial Rise in Lemon Sales for Q2 2014
Limoneira reported a strong increase in lemon sales in its second quarter, leading to an uptick in revenue and operating income. Lemon sales jumped 17% during the period, reaching $18.1 million.
“Based on lemon prices we are currently enjoying, our results for the first six months of fiscal 2014 and our positive outlook for the back half of the year, we are raising our previously issued guidance for the full year results of operations,” said Harold Edwards, President and CEO. Importantly, even with the well-publicized drought in California, we continue to believe that our extensive water rights, usage rights, and pumping rights will provide us with adequate supplies of water as we begin our seasonally strongest quarter of the year.”
Lemon sales were comprised of approximately 78% to U.S. and Canada-based customers, 19% to domestic exporters, and 3% to international customers, according to a press release. The company anticipates seeing favorable prices on lemons for the rest of the year, which are already significantly higher than historical averages.
Revenue increased to $24.8 million, compared to $23.3 million from the same period last year, an approximate 6.4% increase. Lemon sales accounted for $18.1 million of the company’s agribusiness revenue for the quarter, which was reported at $23.6 million compared to $22.2 million in the same period last year, an approximate 6.3% increase.
“Our second quarter financial results reflect the steady progress we are making with our business,” said Edwards. “We continue to grow our top line, reflecting our expanding agribusiness, including our lemon and citrus sales. We also remain pleased with the contributions of our acquired orchards, which generated approximately $2.6 million of operating income in the first half of fiscal year 2014.”
As of 6:31 ET on June 9, Limoneira shares were up $0.24 to $23.18, a 1.05% increase.