Sunday 14 July 2024
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Farmer Bros Co reports net sales of $97.3 million, down 29.8% in 1Q Fiscal 2021

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NORTHLAKE, Texas, U.S. — Farmer Bros. Co. has reported financial results for its first fiscal quarter ended September 30, 2020. Volume of green coffee processed and sold decreased by 5.0 million to 20.9 million pounds, a 19.4% decrease compared to the prior year period primarily due to the impact of the COVID-19 pandemic. Green coffee pounds processed and sold through our DSD network were 4.8 million, or 22.8% of total green coffee pounds processed and sold.

Direct ship customers represented 16.2 million, or 77.2%, of total green coffee pounds processed and sold. Net sales were $97.3 million, a decrease of $41.3 million, or 29.8%, from the prior year period.

Net sales declined at the height of the COVID-19 in April 2020 by approximately between 65% to 70% compared to a decline of approximately 45% of pre COVID-19 weekly sales at the end of the fourth quarter of fiscal 2020, and improved to an approximate decline of 33% from the pre COVID-19 weekly average at the end of the first quarter ended September 30, 2020.

Gross margin decreased to 23.0% from 29.3% in the prior year period.

Operating expenses as percentage of sales increased to 34.8% from 24.3% in the prior year period.

Net loss was $6.3 million compared to net loss of $4.7 million in the prior year period and adjusted EBITDA was $5.7 million compared to $4.0 million in the prior year period.*

As of September 30, 2020, total debt outstanding was $69.8 million and cash and cash equivalents was $11.0 million compared to $122.0 million and $60.0 million, respectively, as of June 30, 2020.

(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled to its corresponding GAAP measure at the end of this press release.)

Deverl Maserang, President and CEO of Farmer Bros. said, “I’m proud of our team and the focus we have had on execution this quarter. We are seeing measurable progress on the rollout of the new handheld technology that allows for greater efficiencies in order and inventory management in real time and our team members are excited about this tool. Also, during this quarter, we selected Rialto, California as the location for our new West Coast distribution center, which we expect to begin operating in the third quarter. While we continue to face challenges from the impact of COVID-19, we remain focused on maintaining cost savings and we’re seeing promising trends as our customers’ businesses are showing signs of recovery. As a result, we have been able to bring back some of our team members to support these customers. Due to COVID-19, many challenges remain, but we are cautiously optimistic given these promising developments.”

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