Thu, Sep 12, 9:04 PM (100 days ago)
Farmer Bros. Co. reported a slight increase in net sales for fiscal 2024, rising 0.3% to $341.1 million, primarily driven by higher pricing, despite a decline in sales volume. Gross margins improved significantly, reaching 39.3% compared to 33.7% in the previous year, attributed to price increases and delivery surcharges. However, operating expenses also increased due to higher selling and general administrative costs, resulting in a loss from continuing operations of $3.9 million, a substantial improvement from a loss of $34.0 million in fiscal 2023. The company’s EBITDA turned positive at $10.7 million, contrasting with a negative EBITDA of $16.9 million last year. Strategically, Farmer Bros. has focused on optimizing its manufacturing and distribution networks, enhancing its product offerings, and improving customer satisfaction. The company also completed the sale of assets related to its direct ship business, contributing to a gain of $21.5 million. Looking ahead, Farmer Bros. faces risks from fluctuating green coffee prices, economic conditions, and competition. As of June 30, 2024, the company maintained a debt of $23.3 million under its revolving credit facility, with cash reserves of $6.0 million, indicating a stable liquidity position.