Alico Bucks Trend Related To Current Citrus Struggles
August 10, 2015 Despite the current slump of the Florida citrus sector, Ft. Myers-based Alico Inc., is riding high on the state’s signature crop. According to the company’s recently announced financial results for the third quarter and nine months of fiscal year 2015, prospects are looking up.
- For the nine months ended June 30, the company sold 9.8 million boxes of citrus fruit and produced a total of 58.3 million pound solids.
- The recent Orange-Co. and Silver Nip Citrus acquisitions drove 5% pro forma year-over-year improvement in production.
“The company is delighted with the number of boxes harvested and sold this season,” Clay Wilson, Alico’s CEO, said. “Pro forma for a full year of Orange-Co and Silver Nip Citrus production, the company sold approximately 10.5 million boxes, an increase of 5% over the 10 million boxes sold in the prior season. This compares favorably to the 8% decrease the Florida orange crop experienced during the same period, as reported by USDA’s final tally of the 2014-2015 Florida orange crop production.”
Wilson attributes the encouraging results to the purchase of high-quality groves, plus superior crop care and growing practices in the field.
For the third quarter of fiscal year 2015, revenues were $68.8 million as compared to $33.9 million for the third quarter of fiscal year 2014. The increase in revenues was due primarily to the Orange-Co acquisition but also due to increased citrus production for the 2014-2015 season, but more than offset by lower citrus prices and decreased sales in the Improved Farmland segment as a result of the recent disposition of sugarcane operations.
Alico sold approximately 4.5 million boxes of oranges in the third quarter of fiscal year 2015 compared to approximately 1.7 million boxes in the same period of fiscal year 2014. Total pound solids were 27.6 million in the third quarter of fiscal year 2015 compared to pound solids production of approximately 11.1 million in the third quarter of fiscal year 2014. The market price per pound solid for the Valencia variety in the third quarter of fiscal year 2015 was approximately $2.07 compared to $2.37 in the same period of fiscal year 2014, a decrease of $0.30 per pound solid or 13%.
For the nine months ended June 30, 2015, revenues were $140.1 million, compared to $89.5 million for the same period of fiscal year 2014. Increased Citrus Groves revenues were offset by lower citrus prices and decreases in Agricultural Supply Chain Management and Improved Farmland revenues resulting from a reduction in external boxes handled, as well as the sale of sugarcane operations.
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