Limoneira Reports 35% Boost in Revenue for Q2 2017
SANTA PAULA, CA - Limoneira has closed out the second quarter of fiscal 2017 on a high note, touting an increase in revenue and an eye on further growth.
"Our solid lemon sales in the second quarter coupled with the efficiencies we are realizing from our packing facility drove a significant increase in our profit margins and cash flow,” said Harold Edwards, President and Chief Executive Officer. “We are very proud of the team's efforts at our new lemon packing facility, which resulted in a per carton packing cost reduction of 19% in the second quarter. We continue to focus on the strategic expansion of our One World of Citrus™ marketing program and increased relationships throughout the world which are enabling us to expand our share of the global citrus market."
Limoneira also successfully closed its acquisition of 90% of the outstanding stock of privately owned Chilean corporation Pan de Azucar S.A ("PDA") for $5.8 million in cash at the end of February, according to the financial report.
"The acquisition of PDA continues to position us to execute on our long-term strategy to expand our agribusiness internationally as a year-round supplier of citrus, complementing our One World Of Citrus™ strategy,” commented Senior Vice President Alex Teague. “We are also pleased with the performance of our new lemon packing facility. During the first six months of fiscal year 2017, we packed 300,000 more cartons of lemons for approximately $300,000 less cost compared to the same period last year. We are proud of the gains we are making in our new packing house and intend to maintain this momentum in the future."
Additional highlights from the company’s second quarter, ended April 30, 2017, include:
- Total net revenue of $36.9 million, a 35% increase from a total net revenue of $27.4 million in the second quarter of the previous fiscal year
- Total costs and expenses were $30.7 million, compared to $25.2 million in the second quarter of last fiscal year, primarily attributable to increases in agribusiness costs and are consistent, Limoneira said, with its strategy of increasing sales volumes for fruit procured from third-party growers.
- Operating income for the second quarter of fiscal year 2017 increased to $6.2 million, compared to income of $2.2 million in the second quarter of the previous fiscal year.
- Adjusted EBITDA was $7.8 million in the second quarter of fiscal year 2017 compared to $3.4 million in the same period of fiscal year 2016.
Much of the increased revenue was attributed to strong lemon sales, and Limoneria said in the report that, based on improved total lemon revenues for the second quarter of fiscal year 2017 and an improved pricing outlook for avocados, it’s raising its earnings guidance range for the fiscal year ending October 31, 2017.
"As we enter the third quarter of fiscal 2017, we remain confident that the key drivers of our growth that contributed to our first half performance will remain in place in the second half. Based on anticipated favorable avocado pricing and robust lemon revenues, we are raising our full year fiscal 2017 earnings guidance," Edwards concluded.
With a leading global agribusiness that includes prime agricultural land and operations, real estate and water rights in California, Arizona, and Chile, and a monthly strategy to continue to boost citrus consumption, AndNowUKnow will continue to keep you up to date on this and other growing produce companies.