ALICO INC

Management Comment

John Kiernan, President and Chief Executive Officer, commented:

I wanted to thank our investors who checked in over the weekend as Hurricane Debby approached the Florida coastline. Alico, and my fellow employees, had a wet weekend, and we expect rain to continue each day for the rest of the week, but we did not sustain any damage from Debby. Our thoughts are with all of our fellow Floridians who were impacted by this storm yesterday. Alico had been through dozens of storms over the past century, and we take every one seriously. Thank you again for your concern.

During the past quarter, Alico finished harvesting the last fruit in our 2023-24 season. Fruit quality was poor at the beginning of both our Early-Mid and Valencia crop harvests but improved; however, the rate of fruit drop accelerated during both harvests. Lower levels of production for the Early and Mid-Season and Valencia harvests this season resulted in lower levels of pounds solid being sold, which has led to a total inventory write-down of $28.5 million in fiscal year 2024. We believe that the Early and Mid-Season and Valencia box production was affected by the continued impacts of

Hurricane Ian. We managed our costs aggressively over the past year, but the lower revenue base was out of our control for the second year in a row.

We have several reasons to be more optimistic about our production next season. First, since 2017 Alico has planted 2.2 million trees, and nearly all of them are now producing fruit. Second, Alico began treating its citrus trees in January 2023 with an OTC product via trunk injection as a citrus greening therapy. In 2023, we were able to treat over 35% of our producing trees with OTC and in 2024, we treated approximately 4.5 million producing trees. Alico received $1.8 million of grant money from the Florida Citrus Research and Field Trial Foundation in January 2024 that covered substantially all of the costs of the 2023-24 harvest season OTC applications, and $1.1 million was received in June that will cover approximately 34% of the 2024-25 harvest season OTC applications. Although the small crop harvested this past season was not impressive, we believe that the continued recovery from Hurricane Ian was the most significant factor impacting fruit production and quality. We remain cautiously optimistic that being another year removed from the hurricane, along with the combination of a second round of injections for previously treated trees and a first round of injections for trees that were not treated in 2023, will show more significant improvements, not just in yield, but also in reduced fruit drop. In fact, in July it was reported that the Florida Department of Agriculture and Consumer Services approved a label change for the OTC product to remove the restriction that the product cannot be applied more than two years in a row. This change will enable us to apply the OTC treatment in calendar year 2025 to the trees that we started treating in 2023, which would be a relief to Alico and the Florida citrus industry overall. Third, as Alico’s production recovers next season, we will sell our fruit at higher prices. As we previously announced, the Company and Tropicana have extended our relationship for another 3 years. With our new contract to supply Tropicana with fruit, Alico will realize significantly higher prices per pound solid, which better reflect current market pricing, with price increases in the second and third years. This new contract covers production on approximately 65% of our acres. The remainder of our acres are covered by a contract with Tropicana, which expires at the end of the 2024-25 season but which also has higher pricing than the expiring contracts.

As the Atlantic hurricane season becomes more active over the next few months, Alico is prepared and focused on managing its world-class citrus operations, just as it has for more than 125 years. One of our greatest competitive advantages, as we face potential weather uncertainties, is our balance sheet liquidity. Our relationships with our lenders remain strong and we have approximately $94.8 million of undrawn capacity under a combination of a revolving line of credit, which matures in November 2029, and a working capital line of credit, which matures in November 2025, to provide ample liquidity as our trees continue to recover from Hurricane Ian. Our $70 million of term debt does not amortize, and is not due for repayment until 2029. We have steady access to workers and contractors, and our employee base is stable.

Outside of our citrus operations, Alico continues to invest resources as it evaluates the long-term highest and best use of our real estate assets. To be clear, Alico will continue to conduct our regular citrus operations at nearly all of our groves for years to come. We will continue evaluating all of our properties to explore creative solutions to enhance and extract value. We seek to provide our investors with the benefits and stability of a conventional agriculture investment, with the optionality that comes with active land management. Last year, after evaluating the direct hit it took from Hurricane Ian in 2022, we made a difficult decision to transition our TRB grove in Charlotte County from proprietary citrus operations to a mix of third-party mining, vegetable and fruit crop leasing activities. This year, we evaluated another grove and have decided to also move beyond citrus there to realize its highest and best use. In 2022, Alico entered into a Purchase Option Agreement (“Option Agreement”) with a third party, E.R. Jahna Industries, Inc. (“Jahna”) for the sale of approximately 899 acres of land at a price of approximately $11,500 per acre on our 2x6 grove located in Hendry County, Florida, which expires in January 2025. It is expected that this Option Agreement will be exercised by the end of December 2024. It is understood that Jahna plans to conduct sand mining operations on the land once regulatory approval has been obtained, and Alico will have the right to lease back most of these acres, including 340 net citrus acres, for de minimis lease payments. In April 2024, we entered into an agreement to sell another approximately 798 acres of land at the 2x6 grove to a third party for approximately $7.2 million ($9,000 per acre), that includes an option to purchase another 680 acres within ten months from the closing date of the sale, at the same price per acre and Alico will continue to grow citrus on those 680 acres for the next harvest season. This previously announced transaction, which closed at the end of June 2024, illustrates our strategy of monetizing citrus groves on a case by case basis to redeploy capital to generate better returns for our shareholders.

In addition to our citrus operations, Alico has been pursuing a diversified real estate strategy since early 2022, which began with a comprehensive analysis of our land holdings portfolio. That process encouraged us to begin the entitlement process for our 4,500 acre grove in Collier County. In May, we recruited Mitch Hutchcraft to lead our Real Estate activities to accelerate the entitlement activities at Corkscrew, as well as develop a comprehensive analysis of highest and best use for remaining properties and create a roadmap to execute these strategic initiatives. Alico is continuing to evaluate every acre for its highest and best use, against its near-term potential for continued cash flow generation from our existing agricultural operations.

I am also pleased to announce that, as part of our succession planning process, current board member Adam Putnam has been selected to be appointed Chairman of the Board of Alico following our next Annual General Meeting to be held in 2025. Adam will succeed George Brokaw, who has served as Chairman since February 2022 and as a Director since November 2013. George will continue to serve Alico as a Director of the Company.

Adam has served on the Alico Board of Directors since August 2020 and has extensive knowledge and experience in the areas of agriculture, sustainability, government affairs, supply chain, business leadership and finance. Adam has served as the Chief Executive Officer of Ducks Unlimited, a U.S. nonprofit organization dedicated to the conservation of wetlands and associated upland habitats for waterfowl, other wildlife, and people since April 2019. Prior to joining Ducks Unlimited, he served as Florida’s Commissioner of Agriculture from 2011 until 2019, where he focused on fostering the growth of Florida agriculture and protecting the state’s water supply, among other issues, and was a U.S. Congressman for five terms, from 2001 until 2011, where he engaged on issues such as agriculture, water and energy. He also was the House

Republican Conference Chair from 2007 until 2009. With his public policy and public service experience, Adam brings to the board expertise in understanding and navigating the physical and transition risks and opportunities of climate change, together with his knowledge of sustainability, water supply, and agricultural operations within Florida’s regulatory environment.