Mon, Jun 9, 8:06 PM (7 days ago)
Limoneira Company (LMNR) reported a challenging quarter ending April 30, 2025, with significant declines in revenue and profitability. Total net revenues decreased by 21% to $35.1 million for Q2 2025, compared to $44.6 million in Q2 2024, primarily due to a 22% drop in agribusiness revenues. The company's operating loss widened to $3.3 million from a loss of $4.7 million in the same period last year. The net loss attributable to Limoneira Company was $3.4 million, compared to a profit of $6.4 million in Q2 2024. For the six months ended April 30, 2025, total net revenues fell by 18% to $69.4 million, and the operating loss increased to $8.7 million from $12.4 million in the prior year. The company's net loss for the six months was $6.4 million, compared to a profit of $2.9 million in the same period last year. The decline in revenues was driven by lower sales volumes and prices for lemons, partially offset by higher avocado and orange revenues. Costs and expenses decreased by 22% for the quarter and 19% for the six months, primarily due to reductions in agribusiness costs and selling, general, and administrative expenses. The company's cash flow from operations was negative $4.0 million for the six months ended April 30, 2025, compared to a negative $13.3 million in the same period last year. Limoneira Company's liquidity and capital resources are supported by cash flows from operations, use of the revolving credit facility, sales of assets, and distributions from equity investments. The company believes that its revenue-generating operations, distributions from equity investments, and credit facilities will provide sufficient cash to operate beyond the next 12 months. Limoneira Company faces several uncertainties, including adverse weather conditions, market responses to industry volume pressures, and disruptions in the global supply chain. The company is committed to executing its business plans and managing risks associated with its operations.