Alico, Inc. has announced financial results for the second quarter ending March 31, 2025. The company reported a net loss of $111.4 million for the quarter, compared to a loss of $15.8 million in the same period in 2024. The sharp increase in losses is primarily due to $119.3 million in accelerated depreciation of citrus trees, following the company's decision to wind down its citrus operations.
CEO John Kiernan confirmed that Alico has completed its last major citrus harvest in April 2025. The company will conduct a final harvest on the remaining 3,783 acres of citrus groves in fiscal year 2026 and has secured agreements to lease 5,250 acres to third-party citrus growers. Additionally, discussions are ongoing with vegetable and fruit growers who may clear up to 1,000 acres in exchange for lease payments. Kiernan noted that Alico's decision to exit citrus production has strengthened its financial position.
Despite the losses, Alico's Strategic Transformation has already exceeded its fiscal year 2025 goals. The company expects to close the year with approximately $25 million in cash and $60 million in net debt, including only $2.5 million outstanding on its revolving line of credit. Adjusted EBITDA is projected to reach $20 million for fiscal year 2025, driven by $20 million from land sales and citrus harvest revenue. Land sales could potentially exceed $50 million, though the company acknowledges timing uncertainties.
Alico's financial performance remains influenced by the seasonal nature of citrus production, with most revenue typically generated in the second and third quarters. However, as the company exits citrus operations, this seasonal pattern is expected to diminish. Adjusted EBITDA for the second quarter was $12.7 million, compared to $(16.5) million in the same period in 2024.
The company's working capital requirements have also shifted, now peaking in the third and fourth quarters due to changes in harvest timing.
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For more information:
John Mills
Alico
Tel: +1 (646) 277 1254
Email: [email protected]
Brad Heine
Tel: +1 (239) 226-2000
Email: [email protected]