Limoneira Company (LMNR) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 net revenue grew 6% to a record $191.5 million, driven by record avocado sales of $25.1 million and improved pricing in fresh lemons and avocados.

• Achieved volume guidance for both avocados (15.1 million pounds sold, highest in nearly 15 years) and lemons, with strategic focus on avocado acreage expansion and foodservice penetration for lemons.

• Strategic alternatives exploration to maximize stockholder value is ongoing, with strong interest in asset monetization and real estate development.

• Real estate joint venture milestones include completion of phase two lot sales, city approval to increase total residential units by 37%, and closed 554 homesites in April 2024.

Financial highlights

• Fourth quarter net revenue increased 6% year-over-year to $43.9 million; agribusiness revenue rose to $42.5 million.

• Adjusted EBITDA for Q4 was $1.2 million, up from a loss of $1.3 million in Q4 2023.

• Fiscal year 2024 net income applicable to common stock was $7.2 million, with adjusted net income per diluted share at $0.62, compared to an adjusted net loss per share of $0.43 in 2023.

• Operating loss for the year was $6.2 million, primarily due to the absence of prior year asset disposal gains.

• Gross margin for fiscal year 2024 was $26.7 million, down from $35.8 million in 2023.

Outlook and guidance

• Fiscal 2025 guidance: fresh lemon volumes of 5–5.5 million cartons and avocado volumes of 7–8 million pounds, with lower avocado volume expected due to alternate-bearing cycle.

• Plans to expand avocado production by 1,000 acres through 2027, targeting 30 million pounds annually by 2029 and supporting long-term EBITDA growth.

• Projected $180 million in real estate proceeds over seven years, with $15 million received in 2024.

• 1,000 acres of non-bearing lemons and avocados expected to become fully bearing in 4–5 years, supporting organic growth.