California-based citrus group Limoneira Company (NASDAQ: LMNR) has announced revenues increased 12% to US$28.1 million in the first quarter of fiscal year 2017, thanks largely to strong lemon sales. 

The company said agribusiness revenue represented US$26.8 million of the total while rental operations made up the remainder. 

The agribusiness revenue includes US$26 million in lemon sales, compared to US$21.9 million during the same period last year. The increase was primarily the result of higher volume of fresh lemons sold partially offset by lower prices.

Some 909,000 cartons of fresh lemons were sold during the period at an average price of US$23.10, compared to 753,000 cartons sold at a an average of US$23.46 last year.

Limoneira recognized no avocado revenue in the quarter due to the seasonality of the crop. 

Orange revenues halved to US$500,000, due largely to the increased rainfall which curtailed the available harvesting days in January. Specialty citrus and other crop revenues were similarly impacted by the rainfall and delayed harvest.

Costs and expenses were similar to the same period last year at US$31.3 million, with slight increases in agribusiness costs offsetting a decrease in real estate development costs.

EBITDA was negative US$1.3 million in the period compared to negative US$4.7 million in the same period in 2016.

The company also said it was raising its earnings guidance range for the fiscal year ending Oct. 31, 2017, thanks to improved total lemon revenues for this first quarter and a "positive pricing outlook for avocados."

Fiscal year 2017 EBITDA is now expected to be in the range of US$21.5-22 million compared to the previous range of US$18.3-18.8 million.

"The Company continues to expect to sell between 3.1 million and 3.5 million cartons of fresh lemons at an average price per carton of approximately $23.00, however it anticipates total lemon revenues, which includes sales of fresh cartons, lemon by-products and shipping and handling revenue to be higher than previously estimated," Limoneira said.

"In addition, the Company continues to expect to sell approximately 8.5 million to 9.0 million pounds of avocados, but currently estimates an average price per pound of $1.00 compared to previous expectations of$0.80 per pound."

The Limoneira's president and CEO Harold Edwards said the company achieved record lemon sales for the quarter, adding the results also benefitted from efficiencies relating to the recently completed packing facility.

"Over the past few years, we have made many strategic investments including the purchase of additional citrus acreage, expansion of our One World of Citrus™ marketing program and increased partner relationships throughout the world which are enabling us to expand our share of the global citrus market," he said.

"As we enter the second quarter of fiscal 2017, we are excited about the drivers of our top and bottom line growth. These drivers include anticipated increase in avocado pricing and better than expected lemon revenues.

"Based on our first quarter results and an improved outlook for the year, we are raising our full year fiscal 2017 earnings guidance."

The company also highlighted that on Feb. 24 it had completed the acquisition of 90% of the outstanding stock of Chilean company Pan de Azucar S.A for US$5.8 million in cash.

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