Alico posts higher sales

FORT MYERS — Increased citrus yields and favorable prices for sugarcane boosted Alico's revenues in the third quarter of its fiscal year by 2.8% to $40.4 million compared with the same quarter in 2011.

Alico's net income rose 61% to $9.6 million in the third quarter ending in June in part due to recent land sales. You can read about one recent land sale here.

“With the recent announcements of the land sales in Polk and Lee counties, we will be able to bring approximately $20 million in cash to our balance sheet,” says JD Alexander, Alico's president and CEO, in a statement. “We will continue to market and sell underproductive assets that are surplus to our operations in order to reinvest in assets that more appropriately align with our return criteria.”

Meanwhile, Alico's citrus production rose significantly, offsetting price decreases for some varieties such as Valencia oranges. “Overall citrus crop production for all varieties for the 2012 fiscal year was approximately 20% greater than the prior year,” says Alexander.

Alico says its citrus production is among the most productive in the state and Alexander says the company plans to increase citrus acreage. The company also converted 4,500 acres of pasture to irrigated land to grow more sugarcane.