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Mar 31, 2023
Alico Q2 2023 Earnings Report
Alico reported a net loss attributable to common stockholders and experienced a decrease in box production due to Hurricane Ian's impact.
Key Takeaways
Alico, Inc. reported a net loss of $7.8 million for the second quarter of fiscal year 2023, with adjusted net loss at $12.3 million. The company faced challenges due to reduced fruit production caused by Hurricane Ian, although they received $4.8 million in crop insurance proceeds during the quarter. Ranch land sales continued, generating $1.6 million in gross proceeds.
Reported net loss attributable to Alico, Inc. common stockholders of $7.8 million and EBITDA of ($3.2) million for second fiscal quarter of 2023.
Box production decreased compared to the previous year due to greater fruit drop from Hurricane Ian.
Received approximately $4.8 million in crop insurance proceeds through March 31, 2023.
Sold approximately 279 acres of the Alico Ranch for approximately $1.6 million in gross proceeds.
Alico
Alico
Alico Revenue by Segment
Revenue by Segment
Alico Citrus Revenue
CapyFin.com Forward Guidance
Alico anticipates it may take up to two full seasons, or more, for their groves to recover to pre-hurricane production levels. The Alico management team is focused on the caretaking of our groves and preparing them for the 2023-2024 harvest.
Positive Outlook
- Alico has been able to navigate through the impacts of Hurricane Ian and unseasonably warm and dry weather over the past several months only through the investments and actions that the Company has taken over the past several years.
- The Company continues to engage with interested third parties on certain parcels of ranch land at prices we continue to believe are competitive.
- We began treating our trees on January 16, 2023, as the product and application devices became available, and treated approximately ten percent of our trees as of March 31, 2023.
- Maintain crop insurance on all of our groves.
- Working closely with insurers and adjusters to determine the remaining amount of insurance recovery.
Challenges Ahead
- Alico, along with the Florida Citrus industry, has experienced significant reductions in revenue due to having less fruit available for sale as a result of the impacts of Hurricane Ian.
- The April 11, 2023 USDA Citrus Crop Forecast estimates a 61% decline in the Florida Orange box production, as compared to the prior year.
- Mechanism of the federal disaster relief funding is still unclear.
- Extent of any benefit of the OTC application will not be measurable until the completion of the fiscal year 2024 harvest.
- It may take up to two full seasons, or more, for our groves to recover to pre-hurricane production levels.