Alico, Inc.: Anticipating Q4 and FY 2024 Results

Alico, Inc. (Nasdaq: ALCO) investors are eagerly awaiting the company's fourth quarter and full year 2024 financial results, set to be released on Monday, December 2, 2024. As the citrus giant prepares to share its performance, let's explore the potential impacts of its citrus production and pricing agreements, real estate activities, and strategic moves on the upcoming results.

Alico's citrus production and pricing agreements have the potential to significantly influence its financial performance. In 2024, the company secured a new three-year agreement with Tropicana for orange sales, with prices 33% to 50% higher than the previous season's average. This deal, coupled with the treatment of 4.5 million producing trees with Oxytetracycline (OTC), supports meaningful production growth in the 2024-25 harvest season. These factors could contribute to a boost in revenue and EBITDA, although Hurricane Ian-related inventory adjustments and insurance proceeds may affect earnings.



Alico's real estate activities and land sales have proven to be a significant driver of its financial performance. In the third quarter, the company sold 798 acres of citrus land for approximately $7.2 million, with an option for the buyer to purchase an additional 680 acres at the same price per acre within the next nine months. This transaction, along with Alico's commitment to real estate activities through the hiring of Mitch Hutchcraft as Executive Vice President of Real Estate, has bolstered the company's financial health. As Alico continues to pursue real estate opportunities, investors can expect this segment to play a crucial role in the company's overall performance.

Alico's strategic moves, such as the appointment of Adam Putnam as the next Chairman of the Board, may indicate a focus on continuity and industry expertise. Putnam's background in agriculture and politics could enhance Alico's citrus production and land management operations, potentially driving shareholder value through improved operational efficiency and strategic partnerships. However, the true impact of this succession plan on Alico's financial performance will depend on Putnam's ability to execute on his vision and navigate industry challenges.

As Alico, Inc. prepares to announce its fourth quarter and full year 2024 financial results, investors can expect the company's citrus production and pricing agreements, real estate activities, and strategic moves to influence its overall performance. With a balanced and analytical perspective, investors can make informed decisions based on the company's latest financial data and market trends. The upcoming results will provide valuable insights into Alico's ability to capitalize on its strengths and adapt to the dynamic market conditions.