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Dec 30, 2024
Alico Q1 2025 Earnings Report
Alico, Inc. reported financial results for the first quarter ended December 31, 2024, with a decrease in net income and EPS, despite an increase in total revenue.
Key Takeaways
Alico, Inc. experienced a significant decline in net income and EPS for the first quarter of fiscal year 2025, primarily due to the absence of land sales compared to a substantial gain in the prior year. Despite this, total revenue increased by 20.8%, driven by growth in Land Management and Other Operations. The company is undergoing a strategic transformation to become a diversified land company, exiting capital-intensive citrus production.
Total revenue increased by 20.8% to $16.894 million compared to the prior year.
Net loss attributable to common stockholders was $9.167 million, a significant decrease from a net income of $42.945 million in the prior year, mainly due to no land sales in the current quarter.
Diluted EPS was a loss of $1.20, down from earnings of $5.64 in the prior year.
The company maintains a robust liquidity position with $73.5 million in available credit facilities and no significant debt maturities until 2029.
Alico
Alico
Alico Revenue by Segment
Revenue by Segment
Alico Citrus Revenue
CapyFin.comLand Mgmt & Other Ops Revenue
CapyFin.com Forward Guidance
Alico expects lower harvest volumes in 2025 compared to 2024, but anticipates approximately $20 million in land sales and aims to have sufficient cash to cover operating expenses through fiscal years 2026 and 2027.
Positive Outlook
- Company expects to realize approximately $20 million in land sales in fiscal year 2025.
- Anticipated proceeds from land sales and cash from Valencia harvest expected to fund operations through fiscal 2027.
- Additional $73.5 million in unused credit facilities available if needed.
- Strategic transformation to become a diversified land company, balancing alternative agricultural operations with strategic land monetization opportunities.
- Exiting capital-intensive citrus production is expected to strengthen financial position.
Challenges Ahead
- Company expects harvest volumes in 2025 to be lower compared to 2024 levels.
- Current season production trends and persistent impacts of citrus greening disease and environmental factors indicate lower total harvest volume for fiscal 2025 compared to fiscal 2024.
- Strategic decision to wind down Alico's citrus operations due to economic non-viability.
- Citrus operations will wind down after the current crop is harvested in the first half of calendar year 2025.
- No significant debt maturities until 2029, but total debt increased to $104.9 million from $92.1 million in the prior quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income