Limoneira Company reported its financial results for the second quarter ended April 30, 2019.
Harold Edwards, President and Chief Executive Officer, stated, "We believe we will continue facing pricing headwinds from the overabundance of larger fresh lemons due to previous heavy rains, until the end of July 2019. This unusual larger sized fruit curve currently being harvested is now expected to cycle through over the next 5 to 7 weeks with a normal size curve returning by end of July, which is longer than we previously expected. While the larger sized fruit is selling for approximately $18.00 per carton, which is below our expected annual average carton price for fiscal 2019, current market pricing for the smaller and medium sized fruit is selling for approximately $30.00 per carton, which is above our expected annual average carton price for fiscal 2019.”
Mr. Edwards continued, “We expect to achieve record domestic and international fresh lemon volume in fiscal year 2019, but our operational costs are temporarily higher than previous expectations due to lower fresh lemon utilization and the size of our fruit and timing of new fruit on our trees being ready for picking is hard to predict. Even though fiscal 2019 expected results have been temporarily affected by the weather, we are well positioned for solid growth and improved profitability in the coming years. Based on our organic lemon growth for next year, expected rebound in avocado revenue and all recent acquisitions coming on-line for a full fiscal year, we are very excited about our continued long-term growth opportunities.”
Fiscal Year 2019 second quarter results
For the second quarter of fiscal year 2019, total net revenue was $42.0 million, compared to total net revenue of $43.1 million in the second quarter of the previous fiscal year. Agribusiness revenue was $40.8 million, compared to $41.9 million in the second quarter of last fiscal year. Rental operations revenue was $1.2 million, compared to $1.3 million in the second quarter of last fiscal year. There were no real estate development revenues in the second quarter of fiscal year 2019 or 2018.
Total costs and expenses for the second quarter of fiscal year 2019 increased to $43.0 million, compared to $33.8 million in the second quarter of last fiscal year. The second quarter of fiscal year 2019 increase in operating expenses was primarily attributable to increases in agribusiness and selling, general and administrative costs and expenses. Costs and expenses associated with its agribusiness include packing costs, harvest costs, growing costs, costs related to the fruit procured and sold for third-party growers and depreciation and amortization expense.
Operating loss for the second quarter of fiscal year 2019 was $1.0 million, compared to operating income of $9.4 million in the second quarter of the previous fiscal year.
For the full second quarter FY 2019 report, please click here.
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