Fri, Sep 13, 9:01 PM (98 days ago)
For the quarter ending July 31, 2024, Coffee Holding Co., Inc. reported a net income of $626,796, contrasting with a net loss of $111,881 in the same quarter of 2023. This improvement is attributed to a 19% increase in net sales, totaling $18,813,162, driven by new private label customers. Gross profit rose to $3,926,064 (20.9% of net sales) from $2,448,763 (15.5% of net sales) due to effective pricing strategies and favorable inventory management. Operating expenses increased to $3,206,201, primarily due to higher administrative costs. The company successfully reduced its line of credit from $9,620,000 to $1,900,000, enhancing liquidity with working capital of $19,494,786. Cash flow from operations surged to $5,209,235 compared to $799,162 in the prior year, indicating robust operational performance. Despite past compliance issues with financial covenants, the company received a waiver in May 2024 and is currently in compliance. However, uncertainties remain regarding commodity price volatility and operational risks. Future strategies will focus on maintaining profitability while managing supply chain challenges.