Limoneira announces Q2 results and rise in revenue for 2014
For the second quarter of fiscal year 2014, revenue was $24.8 million, compared to revenue of $23.3 million in the second quarter of the previous fiscal year. Agribusiness revenue was $23.6 million, compared to $22.2 million in the second quarter last year, primarily reflecting higher lemon revenue. Rental operations revenue was $1.2 million in the second quarter of fiscal year 2014, compared to $1.1 million in the second quarter last year. Real estate development revenue was $31,000, compared to $41,000 in the second quarter last year.
Agribusiness revenue for the second quarter of fiscal year 2014 includes $18.1 million in lemon sales, compared to $15.5 million of lemon sales during the same period of fiscal year 2013, reflecting a higher average price per carton due to more favourable market conditions, partially offset by a lower number of cartons of fresh lemons sold. The decrease in volume in fiscal year 2014 compared to fiscal year 2013 is primarily due to weather conditions and the related timing of fruit harvest. The Company generated avocado sales of $1.2 million in the second quarter of fiscal year 2014, compared to $2.7 million in the same period of fiscal year 2013, reflecting lower pounds of avocados sold, partially offset by higher prices. The Company recognized $3.4 million of orange revenue in the second quarter of fiscal year 2014, compared to $2.3 million of orange revenue in the same period of fiscal year 2013, reflecting higher average prices per field box partially offset by a lower number of field boxes sold. Speciality citrus and other crop revenues were $0.9 million in the second quarter of fiscal year 2014, compared to $1.7 million in the second quarter of fiscal year 2013, reflecting lower average prices and lower volume.
The Company continues to benefit from the success of its direct lemon sales and marketing strategy. In the second quarter of fiscal year 2014, lemon sales were comprised of approximately 78% to U.S. and Canada-based customers, 19% to domestic exporters and 3% to international customers.
Alex Teague, Senior Vice President, stated, “We currently have over 140 direct lemon customers, underscoring the success of our sales team. Our business is also benefiting from strategic acquisitions that we made last year, including the acquisition of Associated in Yuma, Arizona, and Lemons 400 in Porterville, California. We are better positioned to provide lemons to our customers on a year round basis. In addition, the lemon prices we are currently enjoying are significantly higher than historical averages, and while we expect favourable prices to continue for the remainder of the year, we anticipate a settling back to historical averages in the coming months. We look forward to another strong year of agribusiness in fiscal year 2014.”
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