Company Announces Plan to Merge Citrus Sales and Marketing into Sunkist Growers; Expected to Generate $5 Million in Annual Selling and Marketing Cost Savings and EBITDA Improvement Beginning Fiscal Year 2026

Operating Loss Improved 28% in Second Quarter of Fiscal Year 2025 Compared to Prior Year

Avocado Business Continued to Deliver Strong Pricing Performance in Second Quarter of Fiscal Year 2025

Company Reiterates Avocado Volume Guidance for Fiscal Year 2025

SANTA PAULA, Calif.--(BUSINESS WIRE)-- Limoneira Company (the “Company” or “Limoneira”) (Nasdaq: LMNR), a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, today reported financial results for the second quarter ended April 30, 2025.

Management Comments

Harold Edwards, President and Chief Executive Officer of the Company, stated, “The oversupplied lemon market created pricing pressure in our second quarter, yet we delivered strong results across our other business lines. Our avocado operations benefited from robust pricing that continued throughout the quarter, and we expect strong results in the third quarter when the majority of our harvest occurs. Our real estate development project, Harvest at Limoneira, maintained strong home sales velocity, which could potentially accelerate the timing of Phase 3, and we remain on track to close two additional water monetization transactions this fiscal year.”

Mr. Edwards continued, “Today we are announcing our decision to merge our citrus sales and marketing into Sunkist Growers as one of their largest lemon growers. This enables us to reunite with a partner with whom we share deep historical ties and common founding values as an exclusive Sunkist private licensed packer. We expect this to quickly improve the efficiency of our supply chain, significantly reduce costs and provide us access to many of the best food service and retail customers in the country.”

“We expect this partnership will begin in the first quarter of fiscal year 2026 when our sales and marketing personnel and related administrative support will transfer to Sunkist. We anticipate that this will enable us to achieve $5 million in annual selling and marketing cost savings beginning fiscal year 2026 while enhancing our market position and operational resilience. Looking ahead, we plan to execute across multiple value creation avenues – from expanding our avocado production, enhancing our citrus “go-to-market” plan, advancing our real estate development and monetizing our land and water assets. This approach leverages our unique asset base as we strive to build sustainable, long-term stockholder value.”

Fiscal Year 2025 Second Quarter Results

For the second quarter of fiscal year 2025, total net revenue was $35.1 million, compared to total net revenue of $44.6 million in the second quarter of the previous fiscal year. Agribusiness revenue was $33.6 million, compared to $43.3 million in the second quarter of last fiscal year. Other operations revenue was $1.5 million, compared to $1.3 million in the second quarter of last fiscal year.

Agribusiness revenue in the second quarter of fiscal year 2025 includes $19.7 million in fresh packed lemon sales, compared to $25.8 million of fresh packed lemon sales during the same period of fiscal year 2024. Approximately 1,357,000 cartons of U.S. packed fresh lemons were sold in aggregate during the second quarter of fiscal year 2025 at a $14.52 average price per carton, compared to approximately 1,446,000 cartons sold at a $17.85 average price per carton during the second quarter of fiscal year 2024. Brokered lemons and other lemon sales were $2.4 million and $3.8 million in the second quarter of fiscal years 2025 and 2024, respectively.

The Company recognized $2.8 million of avocado revenue in the second quarter of fiscal year 2025, compared to $2.3 million of avocado revenue in the second quarter of last fiscal year. Approximately 1,232,000 pounds of avocados were sold in aggregate during the second quarter of fiscal year 2025 at a $2.26 average price per pound, compared to approximately 1,595,000 pounds sold at a $1.47 average price per pound during the second quarter of fiscal year 2024.

The Company recognized $1.6 million of orange revenue in the second quarter of fiscal year 2025, compared to $1.2 million in the same period of fiscal year 2024. Approximately 92,000 cartons of oranges were sold during the second quarter of fiscal year 2025 at a $17.07 average price per carton, compared to approximately 66,000 cartons sold at a $17.58 average price per carton during the second quarter of fiscal year 2024.

Specialty citrus and wine grape revenue was $671,000 for the second quarter of fiscal year 2025, compared to $839,000 in the same period of fiscal year 2024. During the second quarter of fiscal years 2025 and 2024, approximately 22,000 and 29,000 40-pound carton equivalents were sold at average per carton prices of $30.77 and $29.24, respectively.

Farm management revenues were $0.3 million in the second quarter of fiscal year 2025, compared to $2.0 million in the same period of fiscal year 2024. The decrease in farm management revenues in the second quarter of fiscal year 2025 was due to termination of the farm management agreement with PGIM Real Estate Finance, LLC effective March 31, 2025.

Total costs and expenses in the second quarter of fiscal year 2025 were $38.5 million, compared to $49.3 million in the second quarter of last fiscal year.

Operating loss for the second quarter of fiscal year 2025 was $3.3 million, compared to operating loss of $4.7 million in the second quarter of the previous fiscal year.

Total other income was $0.3 million in the second quarter of fiscal year 2025, compared to $16.5 million in the same period of fiscal year 2024, primarily due to equity in earnings of investments recognized on the April 2024 sale of 554 residential homesites at Harvest at Limoneira.

Net loss applicable to common stock, after preferred dividends, for the second quarter of fiscal year 2025 was $3.5 million, compared to net income applicable to common stock of $6.4 million in the second quarter of fiscal year 2024. Net loss per diluted share for the second quarter of fiscal year 2025 was $0.20, compared to net income per diluted share of $0.35 for the same period of fiscal year 2024.

Adjusted net loss for diluted EPS in the second quarter of fiscal year 2025 was $3.1 million or $0.17 per diluted share, compared to the second quarter of fiscal year 2024 adjusted net income for diluted EPS of $8.1 million or $0.44 per diluted share. A reconciliation of net income or loss attributable to Limoneira Company to adjusted net income or loss for diluted EPS is provided at the end of this release.

Non-GAAP adjusted EBITDA was a loss of $167,000 in the second quarter of fiscal year 2025, compared to a gain of $16.6 million in the same period of fiscal year 2024. A reconciliation of net income or loss attributable to Limoneira Company to non-GAAP adjusted EBITDA is provided at the end of this release.

Fiscal Year 2025 First Six Months Results

For the six months ended April 30, 2025, total net revenue was $69.4 million, compared to $84.3 million for the same period in fiscal year 2024. The decrease was primarily due to decreased lemon revenues, partially offset by increased avocados and oranges agribusiness revenues. Operating loss for the first six months of fiscal year 2025 was $8.7 million, compared to operating loss of $12.4 million in the same period last fiscal year. Net loss applicable to common stock, after preferred dividends, was $6.7 million for the first six months of fiscal year 2025, compared to net income of $2.7 million in the same period last fiscal year. Net loss per diluted share for the first six months of fiscal year 2025 was $0.38, compared to net income per diluted share of $0.15 in the same period of fiscal year 2024.

For the first six months of fiscal year 2025, adjusted net loss for diluted EPS was $5.6 million compared to adjusted net income for diluted EPS of $4.8 million for the same period in fiscal year 2024. In the first six months of fiscal year 2025, adjusted net loss per diluted share was $0.32 compared to adjusted net income per diluted share of $0.27 for the same period in fiscal year 2024, based on approximately 17.8 million and 17.7 million, respectively, adjusted weighted average diluted common shares outstanding.

Balance Sheet and Liquidity

For the first half of fiscal year 2025, net cash used in operating activities was $4.0 million, compared to net cash used in operating activities of $13.3 million in the same period of the prior fiscal year. Net cash used in investing activities was $6.5 million, compared to net cash used in investing activities of $2.9 million in the same period last fiscal year. For the first half of fiscal year 2025, net cash provided by financing activities was $9.6 million, compared to net cash provided by financing activities of $14.0 million in the prior fiscal year.

Long-term debt as of April 30, 2025, was $54.9 million, compared to $40.0 million at the end of fiscal year 2024. Debt levels as of April 30, 2025, less $2.1 million of cash on hand, resulted in a net debt position of $52.9 million at quarter end. In April 2025, the Company received $10.0 million of its share of a $20.0 million cash distribution from its 50%/50% real estate development joint venture, Harvest at Limoneira, with The Lewis Group of Companies (“Lewis”). The distribution came from the joint venture’s available unaudited cash and cash equivalents, which as of April 30, 2025, totaled $37.3 million.

Real Estate Development and Water Transactions

In October 2023, the Company’s real estate joint venture completed the sell-out of Phase 1 of the development. In April 2024, the joint venture closed on lot sales representing 554 residential units, thus completing the sell-out of Phase 2 of the development. Total lot sales of 1,261 residential units closed since the project’s inception. In May 2024, the Company announced that the Santa Paula City Council approved the proposal brought by the joint venture to increase the total number of residential units for the project from 1,500 to 2,050 units. The 550-unit increase will provide 250 additional single family for-sale homesites within Phase 3 of Harvest at Limoneira. A separate joint venture with Lewis plans to construct 300 multi-family rental homes on a mixed-use portion of the project.

In January 2025, the Company sold water pumping rights in the Santa Paula Basin for $30,000 per-acre foot in three separate transactions. The total selling price was $1.7 million, and the Company recorded a gain on sales of water rights of $1.5 million.

Guidance

The Company now expects fresh lemon volumes to be in the range of 4.5 million to 5.0 million cartons for fiscal year 2025. The Company continues to expect avocado volumes to be in the range of 7.0 million to 8.0 million pounds for fiscal year 2025.

The Company expects to receive total proceeds of approximately $180 million from Harvest, LLCB II, LLC and East Area II spread out over seven fiscal years, with approximately $10 million received in April 2025 and $15 million received in fiscal year 2024.

Harvest at Limoneira Cash Flow Projections (in millions)

The Company has 700 acres of non-bearing avocados estimated to become full bearing over the next four to five years, which the Company expects will enable strong organic growth in the coming years. Additionally, the Company plans to continue expanding its plantings of avocados over three years. The foregoing describes organic growth opportunities and does not include potential acquisition opportunities for the Company in its highly fragmented industry.

Looking ahead, we continue to see a strong EBITDA outlook that is underpinned by plans to expand avocado production by an additional 500 acres through fiscal year 2027 to capitalize on expected robust consumer demand trends. During this transition, the Company expects fiscal year 2025 avocado volume to be lower compared to fiscal year 2024 due to the alternate bearing nature of avocado trees. These operational results do not take into account anticipated additional gains from asset monetization.

Conference Call Information

The Company will host a conference call to discuss its financial results on June 9, 2025, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Investors interested in participating in the live call can dial (877) 407-0789 from the U.S. International callers can dial (201) 689-8562. A telephone replay will be available approximately two hours after the call concludes and will be available through June 23, 2025, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations; the passcode is 13753683.

About Limoneira Company

Limoneira Company, a 132-year-old international agribusiness headquartered in Santa Paula, California, has grown to become one of the premier integrated agribusinesses in the world. Limoneira (lē moñ âra) is a dedicated sustainability company with 10,500 acres of rich agricultural lands, real estate properties and water rights in California, Arizona, Chile and Argentina. The Company is a leading producer of lemons, avocados and other crops that are enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Limoneira’s current expectations about future events and can be identified by terms such as “could,” “expect,” “may,” “anticipate,” “outlook,” “plans,” “intend,” “should,” “will,” “likely,” “strive,” and similar expressions referring to future periods.

Limoneira believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Limoneira cautions you against relying on any of these forward-looking statements. Factors that may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: success in executing the Company’s business plans and strategies, including the merger of the Company's citrus sales and marketing into Sunkist Growers and managing the risks involved in the foregoing; the ability of the merger to improve efficiency and reduce cost; changes in laws, regulations, rules, quotas, tariffs and import laws; weather conditions that affect production, transportation, storage, import and export of fresh produce; increased pressure from crop disease, insects and other pests; disruption of water supplies or changes in water allocations; disruption in the global supply chain; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest and currency exchange rates and the impact of inflation; availability of financing for land development activities; general economic conditions for residential and commercial real estate development; political changes and economic crises; international conflict; acts of terrorism; labor disruptions, strikes or work stoppages; loss of important intellectual property rights; inability to pay debt obligations; ability to maintain compliance with debt covenants under our loan agreement; government restrictions on land use; and market and pricing risks due to concentrated ownership of stock. Other risks and uncertainties include those that are described in Limoneira’s SEC filings that are available on the SEC’s website at http://www.sec.gov. Limoneira undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.

Non-GAAP Financial Measures

Due to significant depreciable assets associated with the nature of the Company’s operations and interest costs associated with our capital structure, management believes that earnings before interest, income taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA, which excludes stock-based compensation, loss (gain) on disposal of assets, net and severance benefits are important measures to evaluate our results of operations between periods on a more comparable basis. Such measurements are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and should not be construed as an alternative to reported results determined in accordance with GAAP. The non-GAAP information provided is unique to the Company and may not be consistent with methodologies used by other companies.

EBITDA and adjusted EBITDA are summarized and reconciled to net (loss) income attributable to Limoneira Company, which management considers to be the most directly comparable financial measure calculated and presented in accordance with GAAP, as follows (in thousands):

The following is a reconciliation of net (loss) income attributable to Limoneira Company to adjusted net (loss) income for diluted EPS (in thousands, except per share data):

Supplemental Information
(in thousands, except acres and average price amounts):

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Investors

John Mills

Managing Partner

ICR 646-277-1254

Source: Limoneira Company