Coffee Service

COVID-19 hammers Farmer Brothers' Q2 2021 sales, earnings

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February 5, 2021

Farmer Bros. Co.'s net sales in the second quarter of fiscal 2021 were $104.6 million, reflecting a decrease of $47.9 million, or 31.4%, from the $152.5 million in the prior year period, driven primarily by lower sales of coffee, beverage and allied products due to the COVID-19 pandemic, according to an earnings release.

Net loss was $17.7 million in the second quarter of fiscal 2021 as compared to net income of $7.8 million in the prior year period.

Net loss available to common stockholders was $17.9 million, or $1.02 per common share, in the second quarter of fiscal 2021, compared to net income available to common stockholders of $7.6 million, or 44 cents per common share, in the prior year period.

The second quarter revenue missed analyst projections by $4.83 million, according to Seeking Alpha.

Shares traded at $6.95 Thursday against a 52-week range of $3.47-$14.80.

"As I previously communicated last quarter, despite COVID-19, we are cautiously optimistic as we see measurable progress and completion of key initiatives." Deverl Maserang, president and CEO, said in the release. "As announced earlier this week, our West Coast distribution center is now operational and we are excited to return to California, where we expect to see improved service for our customers and distribution efficiencies on the West Coast."

Although the company experienced improvements early in the current quarter ended Dec. 31, 2020 to where weekly sales were down 32% from pre-COVID levels due to the surge in the U.S. of COVID-19 cases later in the quarter, DSD revenues deteriorated back to approximately 40% compared to the same quarter in the prior year.

The largest DSD revenue declines were from restaurants, hotels and casino channels. This still represents significant improvement since the worst effects on the business from COVID-19 in April 2020 when DSD sales were down by approximately 65% to 70%.

Direct ship sales declined 13% compared to the prior year period due to lower coffee volume related to COVID-19 and the impact of coffee prices for cost plus customers, partially offset by improved volume from retail business and third party e-commerce platforms.

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