Farmer Brothers Co. reported its financial results for the three months ended September 30, 2024, showing a net sales increase of 3.9% to $85.1 million, up from $81.9 million in the same period of 2023. The gross profit for the quarter rose significantly by 21.2% to $37.3 million, compared to $30.8 million a year earlier, resulting in a gross margin improvement from 37.6% to 43.9%. However, the company experienced a net loss of $5.0 million, a substantial increase from the $1.3 million loss reported in the prior year, reflecting a 282.7% decline in profitability.
Operating expenses for the quarter increased to $40.1 million, up from $32.9 million in 2023, representing 47.2% of net sales. The loss from operations before taxes also widened to $4.9 million from $1.4 million in the previous year. Additionally, the company reported a loss on the disposal of assets amounting to $1.7 million, contrasting with a gain of $6.8 million in the same quarter of 2023.
In terms of liquidity, Farmer Brothers Co. had cash and cash equivalents of $3.3 million as of September 30, 2024, down from $5.8 million at the end of June 2024. Total current assets slightly decreased to $102.7 million, while total liabilities increased to $141.1 million from $139.7 million. The total stockholders' equity also declined to $40.9 million from $45.5 million.
The company’s strategic developments included the completion of an asset sale related to its direct ship and private label business to TreeHouse Foods, Inc. on June 30, 2023. This move is part of a broader strategy to streamline operations and focus on core business areas. Additionally, Farmer Brothers Co. is managing its exposure to commodity price risks, particularly concerning green coffee, through forward and option contracts.
The company’s capital expenditures for the quarter were $3.3 million, with anticipated capital expenditures for fiscal 2025 projected between $9.0 million and $11.0 million. As of September 30, 2024, Farmer Brothers Co. had outstanding borrowings of $23.3 million under its Revolver Credit Facility, with $27.1 million available for borrowing. The company remains in compliance with all financial covenants under this facility.
About FARMER BROTHERS CO
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