Limoneira, a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, reported financial results for Q1 2023, with $99 million in net cash proceeds. Results for the quarter were impacted by heavy rains in California pushing the avocado and lemon harvest into the second quarter, as well as softer pricing for lemons due to surplus inventory. However, the company expects to recoup the delayed revenue in the second and third quarters, keeping the full-year 2023 volume guidance intact. Additionally, the company anticipates that pricing for fresh lemon cartons will increase in the second half of the fiscal year through to the end of FY 2023.
The CEO stated, "We have made tremendous progress in a short time, advancing our strategy to monetize certain non-strategic assets, expand our One World of Citrus initiative, and execute on Harvest at Limoneira. Management will be meeting with our Board of Directors this month for our annual strategic planning session to implement a new strategic capital allocation plan.”
The outlook for the company is positive, with improved year-over-year results in FY 2023 compared to FY 2022 due to the company's stronger position in retail food and club grocery. The fresh lemon volumes are expected to be in the range of 5.0 million to 5.4 million cartons for FY 2023, with avocado volumes ranging from 4.0 million to 5.0 million pounds. The company has organic growth opportunities, and it expects to have a steady increase in third-party grower fruit. The company mentioned potential acquisition opportunities for its fragmented industry.
The company cautions investors that results of future periods may differ materially from those expressed or implied in the forward-looking statements. Factors responsible for such deviations include but are not limited to, changes in laws, regulations, rules, tariffs and import laws, weather and growing conditions, and international conflict. Limoneira undertakes no obligation to subsequently update or revise the forward-looking statements made in the press release, except as required by law.