Coffee Service

Coffee Holding reports Q3 sales, earnings loss

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September 15, 2021

Coffee Holding Co. Inc. reported sales and earnings losses for Q3 2021, according to a press release.

Net sales fell 21.3% from $17.3 million in Q3 2020 to $13.6 million for the three months ending July 31, 2021.

Net income fell from $391,324 to a $127,051 loss for the comparative quarters.

Basic and diluted earnings per share fell from a 7-cent gain to a 2-cent loss.

Shares traded at $4.37 Tuesday against a 52-week range of $3.10-$6.48.

"Although we are disappointed with the results of the last three months, we believe we are extremely well positioned entering the fourth quarter to achieve stronger results," Andrew Gordon, president and CEO, said in the release. "Our sales for the third quarter were consistent with other companies during this timeframe as supermarkets continued to wind down inventory levels which were ramped up over the last year due to COVID-19 and supply chain concerns."

Net sales fell 14% from $56.7 million from the nine months ending July 31, 2020 to $46.24 million for 2021.

Net income jumped from $289,994 to $907,305 for the comparative nine-month periods, while basic and diluted earnings per share rose from 5 cents to 16 cents.

"Looking forward into the fourth quarter of 2021, we believe the rally in the coffee market, which began at the end of the third quarter and too late to have a significant impact on our third quarter results, will be a major tailwind for our sales of green coffee in the fourth quarter as well as for sales in fiscal 2022," Gordon said in the release. "Coffee prices are currently trading at six year highs and could potentially face additional upside risk, especially if the upcoming rainy season in Brazil does not materialize in a normal fashion."