Coffee Holding Co. Reports 9% Revenue Increase to $21.3 Million for Quarter Ending January 31, 2025

Coffee Holding Co., Inc. reported a notable increase in financial performance for the three months ending January 31, 2025, with net sales reaching $21.3 million, up from $19.5 million in the same period last year, marking an increase of approximately 9%. The company's gross profit also saw a significant rise, climbing to $5.7 million compared to $3.5 million in the prior year, reflecting improved operational efficiency. Net income for the quarter was reported at $1.15 million, a substantial increase from $351,024 in the previous year, resulting in basic and diluted earnings per share of $0.20, up from $0.06.

The company experienced a shift in its cost structure, with cost of sales decreasing to $15.6 million from $16.1 million year-over-year. This reduction contributed to the improved gross profit margin. However, operating expenses increased to $4.1 million from $2.9 million, primarily due to higher selling and administrative costs, which rose to $3.9 million from $2.7 million. The increase in expenses was attributed to strategic investments in marketing and operational enhancements aimed at driving future growth.

In terms of operational developments, Coffee Holding Co. made a strategic acquisition of Second Empire, which cost $800,000 and is expected to enhance its product offerings and market reach. The company continues to focus on its core product lines, which include wholesale green coffee, private label coffee, and branded coffee. The revenue breakdown for the quarter showed that green coffee sales increased to $8.9 million from $7.5 million, while packaged coffee sales rose slightly to $12.4 million from $12.1 million, indicating steady demand across its product categories.

The company’s balance sheet reflects a solid financial position, with total assets increasing to $38.9 million from $34.0 million, driven by higher cash and accounts receivable. Current liabilities also rose to $9.1 million from $6.8 million, largely due to the establishment of a line of credit amounting to $2.2 million. Despite these increases, Coffee Holding maintains a net working capital surplus of $22.4 million, suggesting a strong liquidity position. The company reported compliance with its financial covenants, alleviating concerns about its ability to meet obligations in the near term.

Looking ahead, Coffee Holding Co. remains optimistic about its growth trajectory, bolstered by its recent acquisition and ongoing investments in product development and marketing. The company anticipates continued revenue growth driven by expanding its customer base and enhancing its product offerings. Management believes that the strategic decisions made during this quarter will position the company favorably in the competitive coffee market, supporting its long-term objectives.