Alico, Inc. reported net income of approximately $8.7 million and earnings of $1.16 per share for the six-month period ending March 31, 2021. That’s about double the net income of approximately $4.4 million and earnings of 58 cents per share in the same period of the prior year. The increase in net income is primarily due to greater revenue generated from the Alico Citrus segment. The greater revenue was a result of the increase in the price per pound solids for fruit.
The increase in fruit price was partially offset by a significant reduction in both production and average pound solids per box in the current period compared to the same period in the prior year.
The company harvested approximately 4.6 million boxes of fruit, a decrease of 17.6% from the same period in the prior fiscal year. The decrease was principally related to there being fewer pieces of fruit on the citrus trees, as well as greater fruit drop being experienced in the current harvest season.
Alico saw an increase in its average realized/blended price per pound solid, from $1.81 in the prior fiscal year to $2.34 in the current fiscal year. That price increase is largely due to increased consumption of not-from-concentrate orange juice by retail consumers since March 2020. This has resulted in decreased inventory supply levels at Florida citrus juice processors. For the 24-week period ended March 20, 2021, consumption of not-from-concentrate orange juice by retail consumers increased by 8.4% compared to the same period a year earlier.
The company experienced an overall decrease in the blended average pound solids per box, which was 5.54 for the six months ended March 31, 2021, compared to 5.85 for the same period in 2020.
“We are encouraged that consumption of not-from-concentrate orange juice by retail consumers has remained strong since March 2020,” said John Kiernan, Alico president and chief executive officer. Kiernan said the rise in consumption has led to improved market pricing for all orange varieties.
“As we have continued through the fiscal year 2021 harvest season, we have seen, along with the entire Florida citrus industry, a decrease in processed box production … as compared to the same period last year,” Kiernan said. He said Alico anticipates its production decline will be in the 15 to 20% range.
See the company’s results for the fiscal quarter that ended Dec. 31, 2020.
Source: Alico, Inc.
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