Alico, Inc. Announces Strong Financial Results for Q1 2025

Alico, Inc. (Nasdaq: ALCO) has announced its financial results for the first quarter ended December 31, 2024, showcasing a robust performance driven by strategic initiatives and a strong liquidity position. The company's revenue increased by 20.8% year-over-year, reaching $16,894 million, while net income attributable to Alico common stockholders decreased by 121.3% to $(9.2) million. However, it is essential to note that the decrease in net income was primarily due to the absence of land sales in the current quarter, as compared to the three months ended December 31, 2023, in which the company recognized a gain of $77.0 million from the sale of 17,229 acres of the Alico Ranch to the State of Florida.



Alico's strategic transformation to become a diversified land company is paying off, with the company expecting to realize approximately $20 million in land sales in fiscal year 2025. This transformation enables Alico to pursue commercial and residential development opportunities while maintaining diversified farming operations across its portfolio, positioning it to deliver enhanced returns for shareholders. The company's robust liquidity position, with $73.5 million in available credit facilities and no significant debt maturities until 2029, further strengthens its financial position and provides the flexibility to fund operations and pursue growth opportunities.



Alico's strategic transformation is supported by the following data and facts:

1. Land Sales: Alico expects to realize approximately $20 million in land sales in fiscal year 2025, which will generate significant proceeds to fund operations through fiscal 2027. This demonstrates the company's ability to monetize its land assets and create value for shareholders.
2. Robust Liquidity Position: Alico has a robust liquidity position with $73.5 million in available credit facilities and no significant debt maturities until 2029. This financial flexibility allows the company to pursue growth opportunities and navigate potential challenges.
3. Reduced Operational Expenses: By winding down its citrus operations, Alico will reduce its operational expenses, improving its overall financial stability. This is evident in the decrease in net income attributable to Alico common stockholders for the three months ended December 31, 2024, which was principally the result of there being no land sales in the current quarter compared to the three months ended December 31, 2023.
4. Diversified Revenue Streams: As a diversified land company, Alico will have multiple revenue streams, including alternative agricultural operations, land monetization, and development opportunities. This diversification will reduce the company's reliance on a single revenue source and improve its long-term growth prospects.

In conclusion, Alico's strong financial performance in the first quarter of 2025 is a testament to the company's strategic transformation and robust liquidity position. By exiting capital-intensive citrus production, the company is well-positioned to fund operations and pursue growth opportunities, ultimately delivering enhanced returns for shareholders.