Coffee Service

Farmer Bros boosts Q2 2022 sales, widens its loss

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February 14, 2023

Farmer Bros. Co. lifted its Q2 2022 sales, which were boosted by price increases, but the company extended its loss over the prior year period, according to an earnings release. Highlights include:

• Net sales rose 12%, from $118.7 million in Q2 2022 to $132.7 million for the quarter ending Dec. 31, 2022. Growth in net sales primarily reflects traction with higher per-pound pricing in both DSD and direct ship sales channels as pricing increases continue to take effect.
• Net loss rose $5.4 million to $13.6 million in the comparative quarters.
• Net loss per common share on both a basic and diluted basis rose from 31 cents to 73 cents.
• The company continued to roll out pricing increases while reducing higher cost inventory, which helped drive revenue.

Shares traded at $4.57 today against a 52-week range of $4.24-$7.83.

The $132.7 million in quarterly revenue beat analyst expectations of $130.8 million, while the 73-cent EPS loss missed expectations of a 56-cent loss, according to investing.com.

"While our turnaround strategy has begun to yield improved financial results, there have been several factors that have impacted the business, including coffee pricing dynamics, customer inventory and purchasing adjustments," Deverl Maserang, CEO at Farmer Bros. Co., said in the press release. "We believe that the expected favorable pricing environment in the coming quarters will lead to meaningful improvement in our results."