Coffee Service
Farmer Brothers improves Q3 2022 sales, earnings
May 9, 2022
Farmer Brothers lifted its sales for Q3 2022 over the prior year period and reduced its loss, according to an earnings report. Highlights include:
- Net sales rose 28.2% from $93.15 billion in Q3 2022 to $119.4 billion for the quarter ending March 31, 2022.
- Net loss improved from $13.68 million in Q3 2021 to $4.01 million in Q3 2022.
- Net loss per common share on both a basic and diluted basis improved from 78 cents to 23 cents.
- Net sales on a 9-month basis rose from $294.9 million to $346.2 million.
- Net loss on a 9-month basis improved from $37.6 million to $11.8 million.
- Net loss on a 9-month basis per common share on both a basic and diluted basis improved from $2.17 to 58 cents.
- DSD sales volumes continued to recover and at quarter-end, posted volume improvements on a year-over-year and quarterly sequential basis.
- Direct ship channel sales improved 23.7% during the three months ended March 31, 2022 compared to the prior year period due to higher volumes on direct ship customers and price changes to customers utilizing commodity-based pricing arrangements where the changes in the green coffee commodity costs are passed on to the customer. This was also due to the recently optimized customer base and recovery from the impact of the COVID-19 pandemic by some direct ship customers.
Shares traded today at $5.87 against a 52-week range of $5.30-$13.08.
The quarterly revenue of $119.4 million beat analyst expectations by $3.4 million while the GAAP EPS of a 23-cent loss beat expectations by 5 cents, according to Seeking Alpha.
"Our 2022 fiscal third quarter performance demonstrated a continuation of strong sequential improvements driven by economic recovery and our business optimization efforts," CEO Daverl Maserang said in the press release. "We delivered our seventh consecutive quarter of gross margin expansion and achieved our highest adjusted EBITDA since the onset of the COVID-19 pandemic, which speaks to the execution against our strategy that we laid out two years ago."
