Coffee Holding (JVA) investor relations material

Executive summary

• Net sales increased 20% year-over-year to $25.566 million, driven by higher sales to legacy and new customers, a full quarter of Second Empire customer sales, and strong performance across private label, branded, and green unroasted bean segments, partially offset by the loss of Comfort Foods customer sales.

• Net income was $1.65 million ($0.29 per share), up from $1.15 million ($0.20 per share) in the prior year period.

• Profitability improved due to reduced tariff expenses and consolidation to a single east coast manufacturing facility.

• Gross profit rose to $7.0 million, with gross margin steady at 27% year-over-year.

• The company declared a $0.08 per share dividend, representing one-third of net income.

Financial highlights

• Operating income increased to $2.38 million from $1.59 million year-over-year.

• Operating expenses rose to $4.65 million, mainly due to higher selling and administrative costs.

• Cash and cash equivalents grew to $2.75 million from $701,872 at the prior fiscal year-end.

• Working capital remained stable at $22.6 million.

• Net cash provided by operating activities was $6.6 million, a significant improvement from a $0.4 million use in the prior year.

Outlook and guidance

• Management expects to fund operations, capital expenditures, and debt payments over the next twelve months through operating cash flow and credit facility availability.

• Management expects core businesses to remain strong despite ongoing coffee market volatility and macroeconomic challenges.

• No material changes to risk factors or forward-looking statements since the last annual report.

• Positive outlook for continued strong results based on current business fundamentals.