Alico, Inc. announces financial results for the second quarter of fiscal 2022 and the six months ended March 31, 2022, the highlights of which are as follows:

• Box production is down from the previous year due to greater fruit drop and frost events.
• Average pound-per-box solids this quarter are down from the prior year.
• Market prices per pound of solids increase in fiscal year 2022.
• The company signed a three-year option agreement with a third party to sell approximately 899 acres of citrus for $11,500 per acre.
• The momentum in ranch land sales continued with the latest transaction of approximately 645 acres at $5,400 per acre.
• The balance sheet remains solid with a working capital ratio of 2.88 to 1.00.

Operating results
For the six months ended March 31, 2022, the Company recorded net earnings attributable to common shareholders of Alico of approximately $30.8 million and earnings of $4.08 per diluted common share, compared to earnings net income attributable to common shareholders of Alico of approximately $8.7 million and earnings of $1.16. per diluted ordinary share during the same period last year.

The increase in net income attributable to common shareholders of Alico is due to (i) an increase in the amount of gain on sale of real estate, property, plant and equipment and assets held for sale recorded during the six months ended March 31, 2022, compared to the six months ended March 31, 2021, primarily due to the sale of certain land parcels at Alico Ranch and (ii) the Company’s recognition during the six months ended March 31, 2022 of a charitable deduction associated with the sale of certain acres to the State of Florida, which led the Company to recognize a tax benefit over the period.

This increase in net income attributable to common shareholders of Alico was partially offset by (i) reduced revenue from the citrus business due to lower processed box production and lower solids per box due to a greater decline in fruit and a freeze event that occurred in late January 2022, (ii) the Company’s receipt of a lower amount of proceeds under the Florida Citrus Recovery Block program Grant (“CRBG”) during the six months ended March 31, 2022, compared to the six months ended March 31, 2021, as the repayment under the CRBG program is now substantially complete and (iii) the increased cost of sales, as a higher percentage of costs was allocated to cost of sales during the six months ended March 31, 2022 because the Company harvested a greater percentage of boxes, compared to the total estimated number of boxes to be harvested for the entire season, during the six months ended March 31, 2022, compared to the same period of the previous year.

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