Loading...
•
Jun 30, 2023
Alico Q3 2023 Earnings Report
Alico reported mixed financial results due to Hurricane Ian's impact and strategic land sales.
Key Takeaways
Alico, Inc. reported net income attributable to common stockholders of $11.8 million for Q3 2023, but also reported an adjusted net loss of $5.6 million. The company faced challenges due to decreased box production from Hurricane Ian, but also benefited from approximately $21.4 million in crop insurance proceeds and $2.7 million in gross proceeds from ranch land sales. They also have $76.8 million of undrawn credit available.
Net income attributable to Alico, Inc. common stockholders was $11.8 million, while adjusted net loss was ($5.6) million.
EBITDA was $18.8 million, while Adjusted EBITDA was ($1.3) million.
Box production decreased due to fruit drop from Hurricane Ian.
Approximately $21.4 million was received in crop insurance proceeds through June 30, 2023.
Alico
Alico
Alico Revenue by Segment
Revenue by Segment
Alico Citrus Revenue
CapyFin.com Forward Guidance
Alico anticipates improved citrus production for the 2023-24 season due to grove care practices and citrus greening therapy, but faces potential challenges from labor and fuel costs.
Positive Outlook
- Expects Alico’s production will substantially increase for the 2023-24 citrus harvest season, as compared to the 2022-23 citrus harvest season.
- Many of the millions of trees planted beginning in 2017 are now mature enough to produce meaningful quantities of fruit this season.
- Pricing next season will be in line with the past season.
- The two-year extension is through the 2024-2025 harvest season, with improved pricing.
- Observing lower market prices for some of our required fertilizer and chemicals.
Challenges Ahead
- The 2022-2023 citrus harvest season has been a difficult one for Alico, because of the impacts from Hurricane Ian last September.
- Overall decrease in box production for Alico was 51.4% for the 2022-2023 harvest season vs. the prior year.
- Lower level of production was insufficient to support our operating cash flow requirements.
- Labor and fuel remain critical resources for us, and although we utilize both as efficiently as possible in our daily operations, inflation over the past few years has increased the base level of those operating expenses.
- Alico is not making any financial projections for the next fiscal year at this time.