Business
Alico, Inc. Announces Update on Harvest Season, Ranchland Sales, Other Business Activities and Financial Guidance
FORT MYERS, Fla., March 31, 2022 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announces updated financial guidance and
About this update from Alico, Inc.
[{"type":"text","content":"FORT MYERS, Fla., March 31, 2022 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announces updated financial guidance and other business activities that will continue to support its business strategy and generate greater returns for our shareholders. The current citrus harvest season has been a challenging one for Alico, as well as for the entire industry in Florida. In addition to a harvest season that was anticipated to produce less fruit than in the prior year, many of the state’s citrus groves, including Alico’s citrus groves, were impacted by a freeze event in late January 2022. Alico took precautionary measures to minimize the impact this weather event had on its groves and production. Nearly all of the Company’s early and mid-season fruit, which comprises approximately 40% of our annual box production, had already been harvested so it was not materially impacted by the freeze. Although the Company’s Valencia harvest will be smaller this season as a result of the freeze, we are pleased that there does not appear to be long-term measurable damage to Alico’s trees. The USDA, in its March 9, 2022 release, is forecasting a total citrus crop of approximately 41.2 million boxes of oranges for the state of Florida for the 2021/22 harvest season crop, which is an approximate 22% decline from 52.8 million boxes harvested in the 2020/21 harvest season. Alico currently estimates an 11% decrease in its annual box production this year, compared with the prior season. Pricing for citrus has increased for the second consecutive year and the Company expects its pricing will approach, and may even reach, the ceiling prices on its long-term supply contracts with Tropicana this season. The Company continues to sell portions of its non-core ranchland at attractive prices. Earlier this month, Alico sold approximately 6,286 acres to private buyers at an average sales price of $4,500 per acre, realizing $28.3 million of gross proceeds. This average sales price per acre represents a significant increase in pricing of ranchland acres resulting from the current market dynamics in Florida for undeveloped real estate in pristine condition. In addition, Alico is under contract to sell, or is in final negotiations to sell, another approximate 2,100 ranchland acres. Since the beginning of 2018, the Company has sold approx...