DENVER – Marley Coffee reports fiscal first quarter sales increased 153 percent compared with last year’s comparable sales.
Commenting on the results for fiscal first quarter 2015, Brent Toevs, Chief Executive Officer of Marley Coffee, said, “First quarter results were in line with our expectations, as we continued to implement our objectives for the year.
The key highlight of the quarter was our strategic agreement and capital raise with Mother Parkers, which we believe is an integral growth catalyst for us in the upcoming year and beyond. Subsequent to the end of the quarter, we have spent time integrating with the Mother Parkers team to help leverage its resources to drive Marley Coffee sales.
Our focus during the quarter was on continuing to implement effective marketing campaigns to help increase our velocity of turning products off the shelf, expanding distribution to key retailers and increasing the talent at Marley Coffee as we complete our team.”
Mr. Toevs added, “We believe we’ve successfully executed on our objectives, and our quarterly numbers reflect our continued focus. We remain confident in our ability to substantially increase our sales this year and reach our goal of more than $10 million in gross revenues and have identified a clear path to attain $25 million in the near future.”
Financial Highlights for the Fiscal First Quarter Ended April 30, 2014
Sales revenue for the fiscal quarter ended April 30, 2014 increased 153 percent to $2.1 million compared with $846 thousand in the year-ago quarter.
Cost of sales for the quarter were $1.7 million compared with $318 thousand last year, primarily attributable to increased sales.
Gross profit was $453 thousand for the first quarter compared with gross profit of $499 thousand in the year-ago quarter. Gross profit margins were 21 percent compared with 59 percent in the year-ago quarter.
The expected decrease in gross profit and gross profit margins was the result of our expansion into new markets and lower initial margins on sales. We expect gross profits to increase in upcoming quarters as we mature in our current grocery operations.
Selling and marketing expenses for the three months ended April 30, 2014 and 2013 were $823 thousand and $168 thousand, respectively, which represents an increase of $655 thousand or 389% from the prior period. The increase was principally the result of increased in-store demos and advertising to drive awareness and trial.
Total operating expenses (including selling and marketing expenses) for the first quarter increased to $2.7 million compared with $813 thousand in the year-ago quarter. Increased expenses reflected greater costs to support sales growth, as well as overall business expansion and professional fees.
Net loss for the first quarter was $1.9 million or a loss of $0.02 per share, compared with $419 thousand or $0.00 per share in the year-ago quarter.
Its cash position was $2.4 million as of April 30, 2014, compared with $857 thousand as of January 31, 2014.
Source: company’s press release