Limoneira Company has reported financial results for the first quarter ended January 31, 2021.
Management Comments
Harold Edwards, President and Chief Executive Officer of the Company, stated, “We achieved record first quarter lemon volume, solid specialty citrus revenues and improved cost structure and cash flow compared to the same period last year despite the COVID-19 pandemic. We have dramatically expanded our focus on retail food and club grocery business, and we are very well positioned to achieve a meaningful increase in domestic foodservice and exports once dining-out improves from COVID-19 vaccine distribution. It is early in the season, but current fresh lemon pricing is performing well compared to last year and we expect strong results from our avocado and oranges in fiscal 2021.”
Fiscal Year 2021 First Quarter Results
For the first quarter of fiscal year 2021, total net revenue was $38.3 million, compared to total net revenue of $41.7 million in the first quarter of the previous fiscal year. Agribusiness revenue was $37.1 million, compared to $40.5 million in the first quarter of last fiscal year. Other operations revenue was similar to the prior fiscal year at $1.1 million.
Agribusiness revenue for the first quarter of fiscal year 2021 includes $25.0 million in fresh lemon sales, compared to $27.0 million of fresh lemon sales during the same period of fiscal year 2020. The decrease was primarily the result of COVID-19 related food service closures reducing the demand for lemons in the food service marketplace and creating an over-supply in the retail marketplace, which resulted in lower average per carton prices in the first quarter of fiscal year 2021. Approximately 1,320,000 cartons of fresh lemons were sold in aggregate during the first quarter of fiscal year 2021 at a $18.91 average price per carton ($20.05 U.S. and $10.53 Argentina) compared to approximately 1,280,000 cartons sold at a $21.12 average price per carton (all U.S.) during the first quarter of fiscal year 2020.
The Company recognized $1.1 million of orange revenue in the first quarter of fiscal year 2021, compared to $2.3 million in the same period of fiscal year 2020, attributable to higher prices of oranges partially offset by a decrease in volume primarily due to harvest timing. Approximately 119,000 cartons of oranges were sold during the first quarter of fiscal year 2021 at a $9.17 average price per carton, compared to approximately 196,000 cartons sold at a $6.71 average price per carton during the first quarter of fiscal year 2020. Specialty citrus and other crop revenue was similar to the prior fiscal year at $1.8 million.