Avocado prices were under pressure in the third quarter of Limoneira's financial year. The lower prices affected this American company's results. The higher revenue in lemons and oranges partially compensated for this shrinkage. Limoneira saw their total turnover drop slightly.
Limoneira closes its third quarter (ending on 31 July) with an income of $40 million. This amount is a slight decrease compared to the $40,4 million of 2017's third quarter. Their rental income remained stable at $1,3 million. There were no developments in the company's real estate component. This segment saw its revenue fall from $39,1 million in 2017 to $38,7 million this year.
"Strong results in lemons and oranges in the third quarter were partially negated by the lower avocado prices. These lower prices were due to the hot weather late in the third quarter," was Harold Edwards, President, and CEO of the company's reaction to the results.
Their Agribusiness division's turnover comprised of, among other factors, $30,7 million revenue from lemon sales. This branch noted a slight rise compared to the $30 million income from a year ago. This increase is mostly due to the larger volumes that were brought to market. Prices were, however, under pressure with regard to 2017. About 992.000 boxes of citrus were sold in quarter three at an average price of $25,91 per box. Over the third quarter of 2017, 919.000 boxes at $28,45 per box were brought to market.
Avocado sales dropped from $7,5 million in 2017 to $5,6 million this year. This decrease is mainly due to the lower price. However, this was partially compensated for by the larger volumes compared to the previous year.
Oranges, however, reported an increase in revenue to $2 million (2017, $1,1 million). The higher prices noted for oranges made up for the effect of the smaller volumes. Citrus specialties and other products booked a combined turnover of $0,3 million. A year earlier this was $0,4 million.
Costs increased to $28,5 million in the third quarter (2017, $27,1 million). This growth was caused by, among other factors, the bigger lemon, and avocado volumes. Operational income over these three months came to $11,4 million. This is less than the $13,2 million of the previous book year. The third quarter's EBITDA ended up on $13,4 (2017, $14,9 million) for the third quarter.
Over the first nine months of the fiscal year, Limoneira's revenue rose to $114,7 million (2017, $105,4 million). Its operational income climbed to $19,1 million against the $16,1 million of a year earlier. In June, Limoneira issued more than $3 million's worth of shares at a price of $22 per share. The $69 million raised by this was used to pay off debts. It was also used to buy the San Pablo ranch and Oxnard Lemon's packing station, land, and some fixed assets.