Staten Island, NY's Coffee Holding Co. Inc. (Nasdaq: JVA) reported net sales of $63.9 million for its fiscal year, ended Oct. 31, 2021, a decrease of 14% compared with fiscal year 2020. CHC attributed the decrease in net sales to the pandemic's negative impact on the company’s green coffee customers who service the restaurant and foodservice industry who either closed or suspended their business operations.
CHC's cost of sales for the fiscal year was $47,9 million, or 75% of net sales, compared with $61.3, or 82% of net sales, for 2020.
The company's gross profit for its latest fiscal year was $16 million, rising $2.9 million from $13.1 million in 2020. Gross profit as a percentage of net sales increased 25% from 18%
The increase in gross profits was attributable to increased margins on CHC's roasted and branded products and green coffee sales in the last part of the year, partially due to the movement of lower cost green coffee inventory built up in previous quarters, which was partially offset by higher packaging costs due to increases in materials.
“Fiscal year 2021 presented both opportunities and challenges for our company. While coffee prices traded at ten-year highs during the fourth quarter of calendar year 2021, we were able to take advantage of our favorable green coffee inventory position to record $0.06 per share in earnings in our fourth quarter of fiscal year 2021, compared to a loss of $0.07 per share in our fourth quarter of fiscal year 2020," said CHC president and chief executive Andrew Gordon.
"For the fiscal year 2021, we earned $0.22 per share, compared to a loss of $0.02 per share for the fiscal year 2020," Gordon reported. "EBITDA for the fiscal year 2021 was approximately $3.4 million. Adjusted EBITDA for the fiscal year 2021 was approximately $4.2 million."
