The conference call discusses Lionero's second quarter fiscal year 25 financial results, featuring remarks from the company's CEO and CFO. The call highlights the release of earnings, the availability of a webcast replay, and cautions about forward-looking statements, emphasizing risks and uncertainties. Adjusted financial measures are discussed for a better understanding of the company's performance.

Beginning in Q1 FY26, the company will merge its citrus sales and marketing operations with Sunkiss Growers, aiming to improve supply chain efficiency, reduce costs, and access premium food service and retail customers. The move is expected to save approximately $10 million annually in selling and marketing expenses and improve EBITDA by $500 million yearly. The merger reunites two organizations founded in 1893 with a shared legacy, enabling a unified system with aligned teams and strategic direction. The combined sales and marketing effort targets growth in the quick serve restaurant sector and strong retail opportunities, offering a full category of citrus to meet customer needs. The transaction will enhance operational capabilities, optimize the supply chain, and deliver value-added services for customers, accelerating the company's strategy to grow its citrus business and long-term returns.

Despite facing a temporarily oversupplied lemon market leading to significant pricing pressure, the company reports total net revenue of $1 million for the second quarter of fiscal year 2025. Agribusiness revenue, particularly from lemons, avocados, and oranges, experienced fluctuations compared to the previous year, influenced by market conditions and strategic harvest postponements to capture more favorable pricing. The company also highlights its citrus sales and marketing plan aimed at enhancing resilience against market volatility.

Limonero Company reported a decline in farm management revenues in Q2 FY25 due to the termination of a Farm Management Agreement, resulting in an operating loss improvement and a net loss applicable to common stock. Despite this, the company anticipates strong visibility on multiple value drivers and a robust EBITDA outlook, expecting additional gains from asset monetization and avocado production expansion. A partnership with Sunki is set to strengthen the citrus business model, creating operational cost savings from the upcoming fiscal year.

The company is estimating significant increases in carton processing through their packing house due to a strategic partnership, aiming for enhanced ability to recruit growers and access more customers. This partnership is expected to stabilize pricing, increase packing margins per carton, and support sustainable EBITDA growth, providing a strong foundation for long-term value creation. The company is executing a comprehensive strategy for both near-term resilience and long-term growth, leveraging assets, strategic partnerships, and operational improvements. Questions arise concerning the transition of revenue bases and the continuation of third-party carton processing through the company's facility.

The discussion highlights the strategic decision to divest Oxnard Lemon assets and lease them back, leading to high costs. By rejoining Sunkist, the company benefits from utilizing Sunkist's existing wash and storage facilities closer to them on an as-needed basis without lease requirements. Additionally, the sales and marketing staff transitions to Sunkist, reducing costs significantly due to a fixed fee arrangement. This move also enables offering a full category of citrus to customers, enhancing service capabilities. Administration and accounting services behind sales and marketing are included in the fixed fee to Sunkist, further streamlining operations. The packing margins for own and grower fruit are expected to strengthen due to a more streamlined infrastructure and the elimination of the Oxnard lease. These changes are projected to increase EBITDA by $Ed million year over year, offering confidence in future financial improvements.

The discussion highlights the minimal balance sheet impact post-Sunkist transaction, focusing on accounts receivable and inventory changes. Additionally, it addresses the current avocado harvest condition, noting the delay in harvest and the focus on fruit size and quality.

The favorable weather conditions this year, characterized by warm days, cool nights, and well-distributed rainfall, are expected to contribute to larger avocado sizes and increased volumes. Holding avocados on the tree longer is anticipated to result in better pricing and weight, benefiting the market. Plantings made over the past few years are queried regarding their potential to increase yield between fiscal 24 and 26, with maturity possibly extending into fiscal 27 and beyond.

Early plantings are exceeding expectations, with recent harvests yielding £10,000 per acre from three-year-old trees. The confidence gained from this success supports the goal of achieving 50 million EBITDA by 2030 from 2000 acres.

A significant deal is celebrated and concluded by a CEO, followed by a Q&A session where attendees are invited to ask questions by pressing star one on their telephones. The session concludes with the CEO expressing gratitude for the interest shown and wishing everyone a great day.