Sunday 05 February 2023

Farmer Bros reports second quarter net sales of $104.6 million, down 31.4% on year

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NORTHLAKE, Texas, U.S. — Farmer Bros Co reported on February 4, 2021, financial results for its second fiscal quarter ended December 31, 2020. Second Quarter Fiscal 2021. Volume of green coffee processed and sold decreased by 8.0 million to 21.4 million pounds, a 27.1% decrease compared to the prior year period primarily due to the impact of the COVID-19 pandemic discussed below.

Green coffee pounds processed and sold through our DSD network were 5.4 million, or 25.3% of total green coffee pounds processed and sold.

Direct ship customers represented 16.0 million, or 74.7%, of total green coffee pounds processed and sold.

Net sales were $104.6 million, a decrease of $47.9 million, or 31.4%, from the prior year period. Gross margin decreased to 25.1% from 28.8% in the prior year period. Net loss was $17.7 million compared to net income of $7.8 million in the prior year period and adjusted EBITDA was $8.3 million compared to $7.4 million in the prior year period.*

As of December 31, 2020, total debt outstanding was $82.0 million and cash and cash equivalents was $5.9 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 Co., said: “As I previously communicated last quarter, despite COVID-19, we are cautiously optimistic as we see measurable progress and completion of key initiatives. As announced earlier this week, our West Coast distribution center is now operational and we are excited to return to California, where we expect to see improved service for our customers and distribution efficiencies on the West Coast.

Further, our handheld technology has been fully implemented across our DSD network and we will complete the transition out of our Houston, Texas facility in the coming quarter. I want to personally thank all the team members across the organization that have worked so hard to bring these projects to completion. All of these efforts will allow us to better serve our customers and position Farmer Brothers for success as we recover from the pandemic.”

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