In its latest financial report, the Northlake, TX-based coffee roaster and distributor continued to make improvements. Farmer Bros. Co. posted net sales of $118.4 million, an increase of 13.3%, for its second 2022 quarter, ended Dec. 31. That was ahead of the Zacks Consensus Estimate by 2.28%.
“We saw further improvement across our business during the second fiscal quarter, highlighted by continued sequential growth in our sales trends," said Farmer Bros. chief executive Deverl Maserang. "Our second fiscal quarter marked the sixth quarter of sequential improvement in our DSD sales, and we ended the quarter with average weekly DSD sales down 17%, compared with pre-COVID levels, representing improvement from down 25% in the prior period and down 40% from one year ago."
Second-quarter highlights
- Net sales were $118.4 million, an increase of $13.9 million, or 13.3%, from the prior year period due to continued improvement in the direct-store-delivery (DSD) channel, compared with the prior year period.
- Gross margin increased to 29.5%, compared with 25.1% in the prior year period.
- Net loss was $5.4 million compared to a net loss of $17.7 million in the prior year period.
- Adjusted EBITDA was $4.5 million, compared with $8.3 million in the prior year period; the prior period included approximately $7.2 million in adjusted EBITDA benefiting from higher amortized gains resulting from the curtailment of the post-retirement medical plan.
- As of Dec. 31, Farmer Bros.' total debt outstanding was $91 million and cash and cash equivalents were $3.6 million.
Founded in 1912, Farmer Bros. Co. is a national roaster, wholesaler and distributor of coffee. It also markets tea and culinary products. The company's lines include organic, direct trade and sustainably produced coffee. Its customers comprise small independent restaurants, and foodservice and office coffee service operators, along with large institutional buyers like restaurant, department, grocery and convenience store chains, as well as hotels, casinos, healthcare facilities and gourmet coffee houses.
