FORT WORTH, Texas, USA – Farmer Bros. Co. reported its second quarter fiscal 2025 financial results for the period ended Dec. 31, 2024. The company filed its Form 10-Q, which can be found on the Investor Relations section of the company’s website. “The second quarter was one of our strongest performing quarters in quite some time despite the challenging market environment,” said Farmer Brothers President and Chief Executive Officer John Moore.
“We saw continued improvements in sales, operating expenses and adjusted EBITDA1, as well as gross margins above 43% for the second straight quarter. Farmer Brothers’ core focus at this time is on driving growth in top line, coffee pounds and customer counts, while continuing to optimize operations.”
“Looking ahead, we continue to focus on executing and navigating difficult macroeconomic conditions and believe these results underscore the positive impact of the changes we have made to focus on DSD operations and optimize the business over the last 18 months. We feel we are better positioned than we have been in a long time to realize significant positive gains and long-term growth and profitability once market conditions become more favorable.”
Farmer Bros. Co.: Second quarter 2025 business highlights
- Enhanced leadership team in January with the addition of Vice President of Sales Brian Miller to lead the sales force and the transition of Vice President and Chief Field Operations Officer Tom Bauer to an operations-focused leadership role.
- Completed additional milestones related to SKU rationalization and brand pyramid initiatives, which are on track to be completed in the third quarter of fiscal 2025.
- Rolled out specialty tier coffee brand to select customers with a full roll out slated by the end of the third quarter of fiscal 2025.
- Continued progress related to direct store delivery (DSD) route optimization and customer penetration efforts.
Second quarter fiscal 2025 financial results
- Net sales of $90 million compared to $89.5 million in the second quarter of fiscal 2024.
- Gross profit of $38.8 million, or 43.1%, compared to $36.1 million, or 40.4%, in the prior year period. The increase in gross profit was primarily a result of improved pricing compared to the prior year period.
- Operating expenses were $37.8 million, or 42% of net sales, compared to $31.7 million, or 35.4% of net sales, in the prior year period. The $6.1 million increase was primarily driven by a $7.7 million decrease in net gains related to asset disposals as there were no branch sales in the second quarter of fiscal 2025.
- Net income was $210,000, which included a $1.5 million net loss associated with the disposal of assets, compared to $2.7 million for the second quarter of fiscal 2024, which included a $6.1 million net gain associated with disposal of assets.
- Adjusted EBITDA1 was $5.9 million, an increase of almost $3.6 million, compared to $2.3 million in the second quarter of fiscal 2024.
Balance Sheet and Liquidity
As of Dec. 31, 2024, the company had $5.5 million of unrestricted cash and cash equivalents, $200,000 in restricted cash, $23.3 million in outstanding borrowings and $23.7 million of borrowing availability under its revolving credit facility.
