Alico, Inc. (ALCO): history, ownership, mission, how it works & makes money

A Brief History of Alico, Inc. (ALCO)

Formation and Early Years

Alico, Inc. was founded in 1960 and was initially incorporated in Texas. The company originally operated in the agriculture sector, focusing on the production of citrus fruits.

Corporate Developments

In the early 2000s, Alico diversified its operations beyond citrus to include other agricultural products. This strategic shift was a response to the fluctuating prices of citrus and the growing demand for alternative agricultural commodities.

Financial Performance

In fiscal year 2022, Alico reported revenues of approximately $36.7 million. The company posted a net income of around $4.1 million.

Land Holdings and Agricultural Production

Alico's agricultural holdings encompass about 14,000 acres of citrus groves located primarily in Florida. The company primarily produces oranges and grapefruits.

Recent Developments

As of the end of fiscal year 2022, Alico had an estimated total asset value of $122.4 million.

Stock Performance

Alico, Inc. is publicly traded on the NASDAQ under the ticker symbol ALCO. The stock price as of October 2023 was approximately $16.25.

Environmental and Sustainability Initiatives

Alico, Inc. has been active in pursuing environmentally sustainable agricultural practices. The company has engaged in water conservation projects and has adopted Integrated Pest Management (IPM) to minimize chemical usage.

Challenges Faced

In recent years, Alico has faced challenges related to climate change, including impacts from hurricanes and shifts in weather patterns affecting citrus production.

Future Outlook

Alico aims to expand its agricultural portfolio further and explore new markets as consumer preferences shift toward sustainability.

A Who Owns Alico, Inc. (ALCO)

Ownership Structure

Alico, Inc. (ALCO) is primarily engaged in the cultivation of citrus fruits and operates in the agricultural sector. The ownership structure can be delineated through its major shareholders as of the most recent filings:

Insider Ownership

As of the latest disclosures, several key individuals possess a significant portion of Alico, Inc.'s shares, reflecting substantial insider ownership:

Market Capitalization

Alico, Inc. has a market capitalization that can be quantified as follows:

As of the latest market data, the market cap of Alico, Inc. stands at approximately $260 million.

Stock Performance

The stock performance can be measured by its trading metrics:

Recent Financial Highlights

The financial performance can be evaluated through its latest earnings report:

Strategic Partnerships

Alico, Inc. has developed strategic partnerships that significantly influence its operational capabilities:

• Collaboration with local growers to enhance citrus production.
• Partnership with agricultural technology firms for innovative farming techniques.
• Agreements with retailers for improved distribution channels.

Future Projections

Analysts project growth trajectories based on current ownership structures and market performance:

Alico, Inc. (ALCO) Mission Statement

Overview of Alico, Inc.

Alico, Inc. is a publicly traded agricultural company, primarily engaged in the cultivation of citrus fruits. The company operates in primarily Florida, and it emphasizes sustainable farming practices, innovative agricultural techniques, and a commitment to quality.

Mission Statement

Alico, Inc. focuses on a mission to enhance shareholder value through responsible management of its agricultural resources while promoting sustainable practices and community engagement.

Core Values

• Integrity: Commitment to ethical practices and transparency.
• Innovation: Adoption of advanced agricultural technologies.
• Sustainability: Focus on environmental stewardship and responsible resource use.
• Community: Engagement and support of the local communities.

Key Financial Highlights

As of the fiscal year ending September 30, 2022, Alico, Inc. reported the following financial metrics:

Strategic Objectives

• Operational Efficiency: Increase efficiency of farming operations to enhance productivity.
• Diversification: Expand product offerings and markets.
• Research and Development: Invest in R&D for improved agricultural practices.
• Risk Management: Implement strategies to mitigate risks from environmental factors.

Market Position and Competitors

Alico operates primarily in the citrus market with significant competition. The following are key competitors:

• Florida's Natural Growers
• Citrus World, Inc.
• Seald Sweet

Sustainability Initiatives

Alico, Inc. is committed to sustainability, focusing on:

• Water conservation measures
• Soil health improvement practices
• Pest management through integrated approaches

Recent Developments

In 2023, Alico expanded its land holdings by acquiring an additional 1,500 acres of citrus land, a move aimed at increasing production capacity and enhancing its market presence.

Shareholder Engagement

Alico emphasizes shareholder engagement through regular updates and transparency in operations. As of the last annual shareholder meeting, 78% of shareholders participated, reflecting strong interest and engagement.

Conclusion

This chapter provides an in-depth view of Alico, Inc.'s mission statement, core values, financial performance, strategic objectives, and market positioning within the agricultural sector.

How Alico, Inc. (ALCO) Works

Company Overview

Alico, Inc. is an agricultural company primarily focused on the production of citrus fruit, mainly oranges. The company was established in 1960 and operates in Central Florida. As of the end of the fiscal year 2022, Alico managed approximately 14,000 acres of citrus groves.

Financial Performance

For the fiscal year ending September 30, 2022, Alico reported the following financial statistics:

Citrus Production

Alico's primary product is citrus, with a focus on oranges for juice production. According to the Florida Department of Citrus, the average yield for Florida oranges was approximately 1,465 boxes per acre for the 2021-2022 season.

As per Alico's operational reports, the company harvested about 1.2 million boxes of oranges in the 2022 season.

Sales and Distribution

Alico's sales are predominantly through contracts with major juice processors. The average price per box for Alico's oranges in 2022 was approximately $6.00.

Market Trends

The Florida citrus industry faced challenges such as citrus greening disease and fluctuating market prices. In 2021, Florida's total citrus production was around 44.5 million boxes, down from 70 million boxes in 2019.

Research and Development

Alico invests in R&D to improve citrus cultivation practices. For example, in 2022, the company allocated around $2 million towards research initiatives aimed at combating citrus greening.

Environmental and Sustainability Practices

Alico, Inc. emphasizes sustainable farming practices, including water conservation and integrated pest management. The company's water usage statistics indicate a reduction of approximately 10% in water consumption over the past three years through innovative irrigation techniques.

Future Outlook

Analysts predict a cautious recovery for the Florida citrus market, with projections of a rebound to approximately 55 million boxes by 2025, contingent on effective disease management.

Conclusion

Alico, Inc. continues to adapt to market challenges while focusing on sustainability and innovation in citrus production.

How Alico, Inc. (ALCO) Makes Money

Business Overview

Alico, Inc. is primarily engaged in the cultivation of citrus and other agricultural products. The company operates in Florida, focusing on producing and selling fresh fruit, particularly oranges.

Revenue Streams

• Citrus Production: Alico derives a significant portion of its revenue from the sale of oranges and other citrus fruits. For the fiscal year ended September 30, 2022, Alico reported revenue of approximately $29.4 million from its citrus operations.
• Land Leasing: The company also generates revenue through leasing its agricultural land. The land leasing revenue for the same period was around $1.7 million.
• Other Agricultural Products: Alico is involved in the production of other crops, contributing an additional $1.5 million to their revenue stream.

Financial Performance

In the fiscal year 2022, Alico's total revenues amounted to $32.6 million. The gross profit for the fiscal year was reported at $12.8 million, reflecting a gross margin of approximately 39.2%.

Cost Structure

The cost of goods sold (COGS) for Alico, Inc. was approximately $19.8 million for the fiscal year 2022. This includes:

• Harvesting and Packing Costs: Estimated at $8 million.
• Farming Supplies: Approximately $6 million.
• Labor Costs: Around $5.8 million.

Profitability Metrics

The net income for Alico, Inc. for the fiscal year 2022 stood at approximately $3.2 million, yielding a net profit margin of about 9.8%.

Market Position and Competitors

Alico, Inc. operates in a competitive agricultural market. Major competitors include:

Investment in Technology

Alico has made strategic investments in technology to enhance productivity. In 2022, the company allocated approximately $1 million for precision agriculture technologies, aimed at improving yield and reducing operational costs.

Future Growth Prospects

Looking ahead, Alico, Inc. anticipates growth driven by:

• Expansion of Agricultural Land: Plans to acquire additional farmland to boost production.
• Diversification of Crops: Introduction of new crop varieties to mitigate risk.
• Increased Direct Sales: Enhancing the direct-to-consumer sales model to increase margins.