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Farmer Bros lifts Q1 2023 sales, extends bottom line loss

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November 4, 2022

Farmer Brothers Co. reported improved sales and a bigger earnings loss for Q1 2023, according to an earnings release. Highlights include:

• Net sales rose 12% from $108.4 million in Q1 2022 to to $121.4 million for the quarter ending Sept. 30, 2022, primarily reflecting increased customer pricing on both the DSD and direct ship network, partially offset by lower volume.
• Net loss rose from $2.4 million to $7.4 million in the comparative quarters.
• Loss per share rose from 13 cents to 39 cents.

Shares traded at $5.89 today against a 52-week range of $4.33-$9.14.

The $121.4 million in quarterly revenue beat analyst expectations by $2.6 million, while the GAAP EPS of a 39-cent loss missed expectations by 6 cents, according to Seeking Alpha.

"Sales momentum continued in our fiscal first quarter, with revenue up 12% year-over-year despite a worsening economic backdrop," CEO Deverl Maserang said in the press release. "Profitability levels reflect an unusual combination of pricing related, seasonal and inflationary pressures on our sales and gross margins, a number of which are short-term in nature and beginning to reverse in the current second fiscal quarter, with substantial margin recovery already underway."