Good lemon market drives Limoneira sales in Q2

The American company, Limoneira, saw their revenue increase by 17% in the second quarter of the financial year, ending 30 April. This is thanks to the good lemon market. The business is active in the fresh fruit and vegetable sector as well as the property market. They closed the quarter with a turnover of $43,1 million.

This was according to the quarterly figures that were presented.

Limoneira's agribusiness division's $35,4 million second-quarter revenue from last year increased to $41,9 million this year. Lemon sales were responsible for the most significant share of sales by far: $33,6 million. In the second quarter of 2017, lemon sales amounted to $26,2 million. This increase is mainly thanks to a larger volume and higher prices in comparison to the previous year. Limoneira sold in the region of 1.157.000 boxes of lemons at an average price of $23,42 per box in quarter two. A year earlier, this was 985.000 boxes at about $21,50 each.

Avocado revenues remain at $0,9 million. A sharp drop when compared to the $2 million recorded a year earlier. This decrease was primarily caused by a lower average price and smaller volumes than those recorded in 2017.

The turnover for oranges came to $5,2 million. This is an increase when compared to 2017's $4,9 million. Higher average prices in the second quarter more than compensated for the smaller volumes. Sales of speciality citrus and other products also amounted to $2,1 million. A year earlier, sales in this group of products totalled $2,3 million.

Limoneira's property division's rental income dropped to $1,3 million. A year ago, this was still $1,5 million. The company saw expenses increase to $33,8 million (2017: $30,7 mill). Higher packaging, harvesting and cultivation costs in the agribusiness branch were the main reasons for the increase in costs.

These second quarter figures can make up the balance for the fiscal year's first quarter. Turnover came to $74,7 million. In the previous year, it was $65 million. EBITDA for the first six months stood at $11,2 million versus 2017's $6,4 million.

Limoneira expects to sell between 3,1 and 3,3 million boxes of lemons this year. These will be sold at an average price of $24,50 per box. For avocados, sales of between 2,7 and 2,9 million kg (6,0-6,5 mill pounds) at an average price of $1,30 per pound, are estimated.

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