In a recent development, Alico , Inc. (NASDAQ:ALCO), a Florida-based agribusiness company with a market capitalization of $240.5 million, has mutually agreed to terminate a significant contract with Tropicana Manufacturing Company, Inc. According to InvestingPro data, the company has maintained dividend payments for 21 consecutive years despite recent challenges. The original agreement, which was centered on orange purchases and dated April 11, 2024, was officially ended on Friday, May 23, 2025.
The decision to end the Orange Purchase Agreement came after Alico’s attempt earlier this year to modify the terms of the contract by removing certain acreage. On January 3, 2025, Alico had sought consent from Tropicana for these changes. However, the discussions ultimately led to a complete termination of the agreement.
According to the termination agreement, both parties have consented to fulfill their respective obligations for the 2024/2025 Crop Year. They have also agreed to settle all outstanding accounts and obligations by July 15, 2025. Additionally, the termination agreement contains a mutual release clause, which absolves each party from any potential claims related to the agreement. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 5.56, indicating sufficient resources to meet its short-term obligations.
Alico, Inc., listed under the ticker (NASDAQ:ALCO), is known for its agricultural production in the crops sector. The termination of this agreement marks the end of a particular business arrangement but does not affect the company’s overall operations or its other business activities.
This news was disclosed in a Form 8-K filing with the Securities and Exchange Commission, which provides investors and the public with essential information regarding significant events that may affect the company’s financial position or the value of its shares. The termination of a material definitive agreement is considered a significant event that requires timely disclosure to maintain transparency with stakeholders.
Investors and interested parties should note that the information regarding the termination of the agreement between Alico, Inc. and Tropicana Manufacturing Company, Inc. is based on the statements made in the SEC filing.
In other recent news, Alico Inc. reported its second-quarter fiscal 2025 earnings, revealing a revenue of $18 million, marking a 1% decrease from the previous year. Despite this dip, the company showed a significant improvement in adjusted EBITDA, with a gain of $12.7 million compared to a previous loss of $16.5 million. The company faced a net loss of $111.4 million, primarily due to $119 million in accelerated depreciation. Alico is undergoing a strategic shift from citrus operations to land management and development, which includes a $50 million share repurchase program. The company’s earnings per share (EPS) of -14.58 significantly missed analyst forecasts of -0.28, mainly due to depreciation expenses, though revenue exceeded expectations. Looking forward, Alico anticipates an adjusted EBITDA of $20 million and potential land sales of up to $50 million, reflecting its focus on land management. The company has also submitted development applications for the Corkscrew Grove Villages project, with construction potentially starting between 2028 and 2029. These developments underscore Alico’s commitment to transforming its business model to create long-term value.
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