Coffee Service

Farmer Brothers reports Q4, FY 2023 sales gains, earnings declines

Logo provided by Farmer Brothers Co.

September 13, 2023

Farmer Brothers Co., a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products, reported sales gains and earnings declines for Q4 and FY 2024, according to an earnings report. Highlights include:

• Net sales rose from $84.6 million in Q4 2022 to $85.5 million in the quarter ending June 30, 2023, reflecting increases in realized price largely offset by lower pound volumes.
• Net loss expanded from $4.4 million to $46.8 million in the comparative quarters.
• EPS loss on a basic and diluted basis rose from a 1-cent gain to an 84-cent loss.
• For fiscal 2023, net sales increased 8% from $314.7 million to $340 million, reflecting price driven sales growth offset by higher product costs due to unfavorable green coffee prices and hedging losses.
• Full year net loss fell from $15.6 million to $79.2 million.
• Full year loss per share on a basic and diluted basis rose from 75 cents to $2.30.

"Farmer Brothers ended a challenging fiscal 2023 on a strong note, including the strategic divestiture of our direct ship customers and early signs of improved pricing and margins late in the fourth quarter," CEO Deverl Maserang said in a press release. "The company enters fiscal 2024 with our full focus on a revitalized direct store delivery business, a stronger balance sheet and a favorable coffee pricing environment."

Shares traded today at $2.15 against a 52-week range of $1,75 to $2.15.

The quarterly revenue of $85.5 million beat analyst expectations by $300,000 while the Q4 GAAP EPS of an 84 cent loss missed expectations by 23 cents, according to Seeking Alpha.

The company reported last week that Maserang will step down as CEO on Sept. 30 and will complete his term as board member unless his successor is identified prior to the end of the term. John Moore, the head of coffee, will be interim CEO starting Oct. 1.