The following is a summary of the Alico, Inc. (ALCO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Alico experienced a net loss of $2 million in the third quarter of 2024, primarily impacted by previous hurricane events.

• For the 9 months ended June 30, 2024, net income soared to $25.1 million, bolstered by significant gains from land sales amounting to $74.9 million.

• The company announced inventory write-downs totaling $28.5 million due to declines in citrus production.

• Alico negotiated more favorable pricing in their new contract with Tropicana, promising improved revenue from citrus sales.

Business Progress:

• Alico has over 2.2 million newly planted trees since 2017, now contributing to production.

• OTC treatments for citrus greening show promising signs of improving fruit yield and quality.

• The company is continuing to reassess the use of its land assets, exploring opportunities beyond traditional citrus operations.

Opportunities:

• New contract terms with Tropicana are expected to significantly boost Alico's revenue from citrus operations.

• The recent label change approval for OTC products paves the way for continued treatments, potentially improving citrus production sustainably.

Risks:

• Ongoing recovery from damage by Hurricane Ian and resultant fluctuations in citrus output could affect future profitability.

• The Atlantic hurricane season poses a seasonal risk to operations, potentially impacting crop yields and operational stability.

More details: Alico IR

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