Fri, Mar 21, 12:51 PM (37 days ago)
**Coffee Holding Co., Inc. (JVA) Q1 2025 Financial Performance Summary** **Revenue and Profitability:** - **Revenue:** $21,305,285 (up 9% from $19,540,402 in Q1 2024). - **Gross Profit:** $5,731,926 (up 64.7% from $3,480,299 in Q1 2024), with a gross margin of 26.9%. - **Net Income:** $1,153,256 (up from a net loss of $351,024 in Q1 2024), with earnings per share of $0.20. **Operational Performance:** - **Cost of Sales:** $15,573,359 (down 3% from $16,060,103 in Q1 2024), representing 73.1% of net sales. - **Operating Expenses:** $4,140,895 (up 45.6% from $2,863,388 in Q1 2024). - **Other Income (Expense):** $31,683 (down from $123,550 in Q1 2024). **Cash Flow:** - **Operating Activities:** Used cash of $401,898 (down from providing $4,594,849 in Q1 2024). - **Investing Activities:** Used cash of $817,906 (up from $0 in Q1 2024). - **Financing Activities:** Used net cash of $2,200,000 (down from $4,920,963 in Q1 2024). **Liquidity and Financial Health:** - **Working Capital:** $22,386,733 (up from $21,526,983 in Q1 2024). - **Cash and Cash Equivalents:** $2,361,218 (up from $1,381,023 in Q1 2024). - **Line of Credit:** $2,200,000 outstanding (up from $0 in Q1 2024). **Future Outlook and Uncertainties:** - **Hedging Policy:** The company is scaling back its use of hedging and short-term trading of coffee futures and options contracts. - **Acquisitions:** The acquisition of Empire Coffee Company is expected to contribute to future growth. - **Market Risks:** The company faces risks related to commodity price volatility, supply chain disruptions, and competitive pressures. **Management's Discussion:** - **Strategic Focus:** The company aims to increase profitability and endure coffee price volatility through diversified product offerings and strategic acquisitions. - **Financial Covenants:** The company is in compliance with its financial covenants and expects to meet its obligations. **Segment Information:** - **Single Segment:** The company operates in one segment: coffee, with revenue derived from wholesale green coffee, private label coffee, and branded coffee. **Controls and Procedures:** - **Material Weaknesses:** The company identified material weaknesses in its internal controls over financial reporting and is implementing remediation plans. **Conclusion:** Coffee Holding Co., Inc. demonstrated strong revenue growth and improved profitability in Q1 2025. The company's strategic focus on diversified product offerings and strategic acquisitions positions it well for future growth. However, it faces risks related to commodity price volatility and supply chain disruptions. The company is addressing material weaknesses in its internal controls and expects to meet its financial obligations.