Coffee Service

Coffee Holding boosts 2021 earnings on pandemic driven sales loss

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February 1, 2022

Coffee Holding Co. managed to improve its earnings on a 14% sales loss in 2021 driven by the coronavirus pandemic, according to an earnings release.

Sales fell 14% from $74.3 million in fiscal 2020 to $63.92 million in fiscal 2021, due to the impacts of the COVID-19 pandemic which caused many of the company's green coffee customers who service the foodservice industry to either close or suspend operations, according to a press release.

Net income improved from a $94,301 loss in 2020 to a $1.25 million gain in 2021.

Basic and diluted earnings per share improved from a 2-cent loss in 2020 to a 22-cent gain in 2021.

Shares traded at $4.40 today against a 52-week range of $4.10-$6.48.

The $63.92 million in revenue missed analyst expectations by $29.88 million while the GAAP EPS of 22 cents beat expectations by 7 cents, according to Seeking Alpha.

"After years of depressingly low coffee prices, this year saw a return to a more traditional coffee market, characterized by wide swings in prices on a weekly basis and an increase in trading volumes with heightened volatility," Andrew Gordon, president and CEO, said in the press release. "We believe the higher coffee prices, partly caused by dry weather and a July frost in Brazil, will remain in the near term, as the market recalibrates the change in the fundamentals of world supply and demand."

For an update on how the coronavirus pandemic has affected convenience services, click here.