Alico, Inc. Announces New Supply Contract with Tropicana
June 10 2024 - 8:00AM
Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today
announced that it entered into a new agreement with its largest
customer to supply citrus fruit. This agreement is effective June
5, 2024 through July 31, 2027, subject to its terms and conditions.
This supply agreement succeeds existing agreements that are set
to expire at the end of July 2024. This agreement effectively sells
the citrus fruit grown on approximately 65% of Alico’s currently
planted acres to Tropicana Brands Group (“Tropicana”) at prices per
pound solids that are approximately 33% to 50% higher over the term
of the contract than the average price for all the citrus fruit
sold to Tropicana last season. Alico has another supply contract
with Tropicana that remains in effect through the 2024-25 harvest
season.
John Kiernan, Alico’s President and Chief Executive Officer,
commented, “We are pleased to announce that we have extended our
relationship with our largest customer for three additional years.
Alico is proud of the successful business relationship we have been
able to develop with Tropicana Brands over the past decade and we
are both committed to meeting the challenges facing the Florida
citrus industry together with near-term patience and long-term
focus. This new supply agreement, in addition to our other
continuing agreement, commit the majority of our citrus fruit at
more certain pricing provisions over the next several seasons.”
LEARN MORE ABOUT ALICO INC.
Alico, Inc. primarily operates two divisions: Alico Citrus, one
of the nation’s largest citrus producers, and Land Management and
Other Operations, which includes land leasing and related support
operations. Learn more about Alico (Nasdaq: "ALCO") at
www.alicoinc.com.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements include, but are not limited
to, statements regarding our new supply agreement with Tropicana,
business strategy, plans and objectives of management for future
operations or any other statements relating to our future
activities or other future events or conditions or any other
statements relating to our future activities or other future events
or conditions. These statements are based on our current
expectations, estimates and projections about our business based,
in part, on assumptions made by our management and can be
identified by terms such as “will,” “should,” “expects,” “plans,”
,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,”
“contemplates,” “believes,” “estimates,” “forecasts,” “predicts,”
“potential” or “continue” or the negative of these terms or other
similar expressions.
These forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or forecasted in the
forward-looking statements due to numerous factors, including, but
not limited to: adverse weather conditions, natural disasters and
other natural conditions, including the effects of climate change
and hurricanes and tropical storms, particularly because our citrus
groves are geographically concentrated in Florida; damage and loss
from disease including, but not limited to, citrus greening and
citrus canker; any adverse event affecting our citrus business; our
ability to effectively perform grove management services, or to
effectively manage an expanded portfolio of groves; our dependency
on our relationship with Tropicana and Tropicana’s relationship
with certain third parties for a significant portion of our
business; our ability to execute our strategic growth initiatives
and whether they adequately address the challenges or opportunities
we face; product contamination and product liability claims; water
use regulations restricting our access to water; changes in
immigration laws; harm to our reputation; tax risks associated with
a Section 1031 Exchange; risks associated with the undertaking of
one or more significant corporate transactions; the seasonality of
our citrus business; fluctuations in our earnings due to market
supply and prices and demand for our products; climate change, or
legal, regulatory, or market measures to address climate change;
ESG issues, including those related to climate change and
sustainability; changes in investor or other stakeholder sentiment
or demand; increases in labor, personnel and benefits costs;
increases in commodity or raw product costs, such as fuel and
chemical costs; transportation risks; any change or the
classification or valuation methods employed by county property
appraisers related to our real estate taxes; liability for the use
of fertilizers, pesticides, herbicides and other potentially
hazardous substances; compliance with applicable environmental
laws; loss of key employees; material weaknesses and other control
deficiencies relating to our internal control over financial
reporting ; macroeconomic conditions, such as rising inflation, the
deadly conflicts in Ukraine and Israel; system security risks, data
protection breaches, cyber-attacks and systems integration issues;
our indebtedness and ability to generate sufficient cash flow to
service our debt obligations; higher interest expenses as a result
of variable rates of interest for our debt; our ability to continue
to pay cash dividends; and the other factors described under the
sections "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in our Annual
Report on Form 10-K for the fiscal year ended September 30, 2023
filed with the Securities and Exchange Commission (the “SEC”) on
December 6, 2023, and in our Quarterly Reports on Form 10-Q, which
are available on the SEC’s website at http://www.sec.gov. Except as
required by law, we do not undertake an obligation to publicly
update or revise any forward-looking statement in this press
release, whether as a result of new information, future
developments, or otherwise.
This press release also contains financial projections that are
necessarily based upon a variety of estimates and assumptions which
may not be realized and are inherently subject, in addition to the
risks identified in the forward-looking statement disclaimer, to
business, economic, competitive, industry, regulatory, market and
financial uncertainties, many of which are beyond the Company’s
control. There can be no assurance that the assumptions made in
preparing the financial projections will prove accurate.
Accordingly, actual results may differ materially from the
financial projections.
INVESTOR RELATIONS CONTACTAny questions can be
emailed to: investorrelations@alicoinc.com
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