Limoneira Sheds Non-Strategic Assets, Projects Lemon Volumes Of 7M In 2028
Limoneira Co (NASDAQ: LMNR) provided a strategic update on its progress year-to-date and long-term forecast at an investor day.
Update: The company sold 4 of 6 non-core assets worth $180 million, of which $50 million is to be realized in the next 12 months. It also divested unprofitable operations in cadiz.
LMNR reduced net debt to $31.5 million and terminated its long-term retirement plan for annual savings of $1 million.
The company established a 3-year fallowing program in Arizona to drive an additional revenue of around $1.3 million.
Outlook: LMNR expects to garner planned incremental EBITDA growth of $25 million in the next five years.
The company expects additional 700 acres of non-bearing lemons to become full bearing in the next 4-5 years, with 200 acres to bear fruit in FY23.
LMNR plans to sell two non-core assets for $50 million and create a Farm Management Services Division.
The company targets domestic annual lemon volumes of 5.2 million in 2023 and 7.0 million in 2028.
Price Action: LMNR shares are trading lower by 0.54% at $15.60 on the last check Monday.
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