STATEN ISLAND, New York, USA – Coffee Holding Co., Inc. (the “Company” or “we”) announced its operating results for the fiscal year ended October 31, 2024. The Company is pleased to report extremely strong results to our shareholders. Net sales for fiscal 2024 increased 15% compared to fiscal 2023. Gross margins increased from 16% in fiscal 2023 to 20% in fiscal 2024 and Net income for fiscal 2024 was $2,245,132, or $0.39 per share, compared to a net loss of ($835,576), or ($0.15) per share, in fiscal 2023.
With coffee prices remaining over $2.00/lb. for the majority of 2024, we were able to capitalize on our long-term strategy of having a horizontally-integrated product mix.
High green coffee prices increased our profitability to our wholesale green coffee customers while mitigating the margin compression to our private label customers, many of whom were behind the growth in our total revenues.
“Adding all this new business on the roasted side of the balance sheet was both a boon and a concern at the same time” said Andrew Gordon, President and CEO of Coffee Holding Co.
“Even with commodity prices rising as fast as they did, especially during the second half of the year, we still were required to hold off on increasing our prices to our large supermarket and wholesale customers until the national brands increased their prices, which clearly had a negative effect on both revenues and earnings up until when the majority of these price increases were implemented during the latter half of fiscal Q4 of 2024.
Now, we believe that these increases, combined with an elevated Arabica futures market, should provide us with a strong tailwind heading into fiscal 2025.
Although 2024 proved to be a challenging year due to the macro inflationary environment, which saw coffee prices approach life of contract highs, in addition to increases in the costs of transportation, healthcare and insurance, we believe we successfully navigated these issues to deliver strong results.
We strengthened our balance sheet, dramatically reducing our debt load even though interest rates remained elevated, as well as renegotiating our lease at our main offices in Staten Island, which will result in an annual savings of approximately $72,000 a year.
These continued efforts on our part to focus on ways to reduce our operating costs along with an expected continued growth trajectory in revenues, give me reason to believe that we will continue to execute as a company and give our shareholders the value that they have missed out on over the past several years.” ended Andrew Gordon, President and CEO.
