Q2 2025 Limoneira Co Earnings Call Transcript
Key Points
- Limoneira Co (LMNR) is merging its citrus sales and marketing operations with Sunkist Growers, which is expected to improve supply chain efficiency and reduce costs.
- The partnership with Sunkist is projected to save approximately $5 million annually in selling and marketing expenses, enhancing EBITDA by the same amount.
- The merger provides Limoneira Co (LMNR) access to a broader range of food service and retail customers, enhancing its market reach.
- The company is expanding its avocado production by 2,000 acres by the end of fiscal year 2027, which is expected to significantly enhance EBITDA as trees mature.
- Limoneira Co (LMNR) is making progress in its real estate development project, Harvest at Limoneira, with strong home sales activity potentially accelerating Phase 3.
- Total net revenue for the second quarter of fiscal year 2025 decreased to $35.1 million from $44.6 million in the same quarter of the previous year.
- Agribusiness revenue declined due to an oversupplied lemon market, leading to significant pricing pressure.
- The company reported a net loss applicable to common stock of $3.5 million for the second quarter of fiscal year 2025, compared to a net income of $6.4 million in the same period of fiscal year 2024.
- Adjusted EBITDA for the second quarter of fiscal year 2025 was a loss of $167,000, compared to a gain of $16.6 million in the same period of fiscal year 2024.
- The transition of the citrus brokerage business to Sunkist will reduce Limoneira Co (LMNR)'s topline revenue, although it is expected to improve operational capabilities and cost structure.
Greetings, and welcome to the Limoneira second-quarter 2025 financial results conference call. (Operator Instructions)
It is now my pleasure to introduce your host, John Mills with ICR. Thank you. Sir, you may begin.
Good afternoon, everyone, and thank you for joining us for Limoneira's second-quarter fiscal year 2025 conference call. On the call today are Harold Edwards, President and Chief Executive Officer; and Mark Palamountain, Executive Vice President and Chief Financial Officer. By now, everyone should have access to the second quarter fiscal year 2025 earnings release, which went out today at approximately 4 PM Eastern Time. If you've not had the chance to review the release, it's available on the Investor Relations portion of the company's website at limoneira.com. This call is being webcast, and a replay will be available on Limoneira's website as well.
Before we begin, we'd like to remind everyone that prepared remarks contain forward-looking statements, and management
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