Coffee Holding Co., Inc. reports a 15% sales increase and net income of $2.25 million for fiscal 2024.
Quiver AI Summary
Coffee Holding Co., Inc. announced strong fiscal results for the year ending October 31, 2024, with net sales rising by 15% compared to the previous year, and gross margins improving from 16% to 20%. The company reported a net income of $2,245,132, or $0.39 per share, reversing a loss of $835,576 in fiscal 2023. Despite challenges such as high coffee prices and inflation, the company successfully managed to maintain profitability due to its horizontally-integrated product mix and strategic decisions regarding pricing. CEO Andrew Gordon highlighted operational improvements, including reduced debt and savings from a renegotiated lease, positioning the company for continued growth and value for shareholders in the future. Coffee Holding is a major wholesale coffee roaster and dealer, offering a variety of coffee products to meet diverse consumer preferences.
Potential Positives
- Net sales for fiscal 2024 increased by 15% compared to fiscal 2023, indicating strong revenue growth.
- Gross margins improved from 16% in fiscal 2023 to 20% in fiscal 2024, demonstrating better profitability.
- Net income for fiscal 2024 was $2,245,132, a significant recovery from a net loss of $835,576 in fiscal 2023, reflecting a strong turnaround in financial performance.
- The company successfully reduced its debt load and renegotiated its main office lease, resulting in annual savings of approximately $72,000, contributing to a stronger balance sheet and reduced operating costs.
Potential Negatives
- Despite reporting strong operating results, the company highlighted a significant concern regarding delayed price adjustments for large customers, which negatively impacted revenues and earnings prior to the latter half of fiscal Q4 2024.
- The statement mentions that macro inflationary pressures and rising commodity prices presented challenges, indicating potential vulnerability to external market conditions that could affect future performance.
- The reliance on national brands to raise prices before the company could adjust its own may suggest a lack of pricing power in a competitive market, raising concerns about the company's market positioning going forward.
FAQ
What were Coffee Holding Co.'s net sales for fiscal 2024?
Net sales for fiscal 2024 increased by 15% compared to fiscal 2023.
How did gross margins change from fiscal 2023 to 2024?
Gross margins increased from 16% in fiscal 2023 to 20% in fiscal 2024.
What was the net income per share for fiscal 2024?
Net income for fiscal 2024 was $2,245,132, or $0.39 per share.
How did Coffee Holding Co. manage rising coffee prices?
The company capitalized on a horizontally-integrated product mix to mitigate margin compression.
What are the future expectations for Coffee Holding Co.?
The company anticipates continued growth in revenues and improved operational execution heading into fiscal 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$JVA Hedge Fund Activity
We have seen 14 institutional investors add shares of $JVA stock to their portfolio, and 6 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SHEAFF BROCK INVESTMENT ADVISORS, LLC added 35,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $119,700
- MILLENNIUM MANAGEMENT LLC added 31,836 shares (+inf%) to their portfolio in Q3 2024, for an estimated $102,830
- OSAIC HOLDINGS, INC. added 30,200 shares (+3660.6%) to their portfolio in Q3 2024, for an estimated $97,546
- EMPOWERED FUNDS, LLC added 20,316 shares (+inf%) to their portfolio in Q4 2024, for an estimated $69,480
- QUINN OPPORTUNITY PARTNERS LLC added 13,401 shares (+49.5%) to their portfolio in Q3 2024, for an estimated $43,285
- DIMENSIONAL FUND ADVISORS LP added 12,745 shares (+inf%) to their portfolio in Q3 2024, for an estimated $41,166
- XTX TOPCO LTD added 10,519 shares (+inf%) to their portfolio in Q3 2024, for an estimated $33,976
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
STATEN ISLAND, New York, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Coffee Holding Co., Inc. (Nasdaq: JVA) (the “Company” or “we”) announced its operating results for the fiscal year ended October 31, 2024:
● | The Company is pleased to report extremely strong results to our shareholders: Net sales for fiscal 2024 increased 15% compared to fiscal 2023; | |
● | Gross margins increased from 16% in fiscal 2023 to 20% in fiscal 2024; and | |
● | Net income for fiscal 2024 was $2,245,132, or $0.39 per share, compared to a net loss of ($835,576), or ($0.15) per share, in fiscal 2023. |
With coffee prices remaining over $2.00/lb. for the majority of 2024, we were able to capitalize on our long-term strategy of having a horizontally-integrated product mix.
High green coffee prices increased our profitability to our wholesale green coffee customers while mitigating the margin compression to our private label customers, many of whom were behind the growth in our total revenues.
“Adding all this new business on the roasted side of the balance sheet was both a boon and a concern at the same time” said Andrew Gordon, President and CEO of Coffee Holding Co.
“Even with commodity prices rising as fast as they did, especially during the second half of the year, we still were required to hold off on increasing our prices to our large supermarket and wholesale customers until the national brands increased their prices, which clearly had a negative effect on both revenues and earnings up until when the majority of these price increases were implemented during the latter half of fiscal Q4 of 2024.
Now, we believe that these increases, combined with an elevated Arabica futures market, should provide us with a strong tailwind heading into fiscal 2025.
Although 2024 proved to be a challenging year due to the macro inflationary environment, which saw coffee prices approach life of contract highs, in addition to increases in the costs of transportation, healthcare and insurance, we believe we successfully navigated these issues to deliver strong results.
We strengthened our balance sheet, dramatically reducing our debt load even though interest rates remained elevated, as well as renegotiating our lease at our main offices in Staten Island, which will result in an annual savings of approximately $72,000 a year.
These continued efforts on our part to focus on ways to reduce our operating costs along with an expected continued growth trajectory in revenues, give me reason to believe that we will continue to execute as a company and give our shareholders the value that they have missed out on over the past several years.” ended Andrew Gordon, President and CEO.
About Coffee Holding
Founded in 1971, Coffee Holding Co., Inc. (NASDAQ: JVA) is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding’s product offerings consist of eight proprietary brands, each targeting a different segment of the consumer coffee market as well as roasting and blending coffees for major wholesalers and retailers throughout the United States who want to have products under their own names to compete with national brands. In addition to selling roasted coffee, Coffee Holding Co., Inc. also imports green coffee beans from around the world which it resells to smaller regional roasters and coffee shops around the United States and Canada.
Forward looking statements
Any statements that are not historical facts contained in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including the Company’s outlook on the revenue growth. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. We have based these forward-looking statements upon information available to management as of the date of this release and management’s expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, hedging activities, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions and other risks and uncertainties described in the “Risk Factors” section of documents filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.
Company Contact
Coffee Holding Co., Inc.
Andrew Gordon
President & CEO
(718) 832-0800