Coffee Service

Quarterly sales, earnings fall for Coffee Holding

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June 14, 2021

Net sales for Coffee Holding Co., a wholesale coffee roaster and dealer, fell 28% from $20.01 million in for the three months ending April 30, 2020 to $14.5 million for the three months ended April 30, 2021, according to a press release.

The decrease in net sales was due to multiple factors, including the continued loss of sales of packed coffee to the company's customers who have not fully re-opened due to COVID-19 restrictions. The decreases in net sales were slightly offset by gains in sales to new private label accounts as well as an increase in sales of the company's flagship Café Caribe brand.

Net income fell from $498,518 in the three months ending April 30, 2020 or 9 cents per share basic and diluted, to $357,033 or 6 cents per share basic and diluted in the comparative 2021 quarter.

Shares traded at $5.96 today against a 52-week range of $2.77-$6.48.

"Despite a 28% decline in sales for the three months ended April 30, 2021 compared to the same period last year, we still earned 6 cents a share, as our gross margins continue to improve through a combination of higher selling prices on green coffee sales and lower operating costs," CEO Andrew Gordon said in the press release. "Sales were negatively impacted by a $5.2 million decline in sales of packed coffee beans compared to last year to customers who have not fully reopened due to continued Covid-19 restrictions in many states where a large percentage of our business is concentrated.

"In addition, we were not the beneficiary of the same boost in supermarket sales witnessed last year during the March and April months of the pandemic."

With most states fully reopening, the company should begin to see an increase in sales volumes compared to last year, as its has acquired new customers during the last 12 months, Gordon said.

For an update on how the coronavirus pandemic is affecting convenience services, click here.