Limoneira, a leading company in the citrus industry, is currently facing challenges in its food-service business due to supply-chain slowdowns and inflationary pressures. These issues are not unique to Limoneira, as they are affecting the entire global market.
Volume Expectations for Fiscal Year 2024
For the fiscal year 2024, Limoneira expects fresh lemon volumes to be between 5.0 million and 5.5 million cartons. Additionally, avocado volumes are anticipated to range from 7.0 million to 8.0 million pounds.
Non-Bearing Acres and Future Growth
Limoneira currently has 700 acres of non-bearing lemons and avocados. These acres are projected to reach full bearing capacity within the next four to five years, which will contribute to strong organic growth in the coming years. The company also has plans to expand its avocado plantings over the next three years and expects an increase in fruit from third-party growers.
Exploring Strategic Alternatives
With a solid financial position and a significantly reduced net debt, Limoneira is now exploring various strategic alternatives to maximize value for its stockholders. The company's management and board believe that this exploration will lead to improved margins in fiscal year 2024. Additionally, Limoneira intends to sell two non-strategic assets, expecting proceeds of approximately $50 million.
