Farmer Bros.: Reports Fiscal Q1-2025 Financial Results

Northlake / TX. (fbc) Farmer Bros. Company reported its first quarter fiscal 2025 financial results for the period ended September 30, 2024. «We are encouraged by the improvements we saw during the first quarter, particularly in terms of gross margins and adjusted Ebitda on a year-over-year basis, as well as positive trends related to sales and customer growth and retention,» said Interim Chief Executive Officer John Moore. «Our focus is on driving top-line growth and sustainable profitability improvements while proactively navigating the near-term macroeconomic and commodity pricing environments. Overall, we believe this quarter’s performance provides a glimpse into the long-term potential of Farmer Brothers.»

First quarter 2025 business highlights

• Completed additional milestones related to its SKU rationalization initiative, which is on track to be completed in the third quarter of fiscal 2025.
• Continued progress related to its brand pyramid initiative, including the completion of the refresh of its premiere, premium Boyd ‘s Coffee brand.
• Made marked progress related to its branch and direct store delivery (DSD) route optimization efforts.

First quarter fiscal 2025 financial results

• Net sales increased USD 3.2 million, or 4 percent, to USD 85.1 million compared to USD 81.9 million in the first quarter of fiscal 2024.
• Gross profit was USD 37.3 million, or 43.9 percent, compared to USD 30.8 million, or 37.6 percent, in the prior year period. The increase in gross profit was primarily due to improved pricing compared to the same period in the prior fiscal year.
• Operating expenses were USD 40.1 million or 47.2 percent of net sales. This was a USD 7.3 million increase compared to the prior year period, which saw an operating expense of USD 32.9 million, or 40.1 percent of net sales. This increase was primarily due to a USD 8.5 million decrease in asset sales, as there were no branch sales during the first quarter of fiscal 2025.
• Net loss was USD 5 million compared to a net loss of USD 1.3 million for the first quarter of fiscal 2024. This was primarily driven by a USD 1.7 million loss associated with the disposal of assets and USD 500,000 of non-cash stock compensation. The USD 1.3 million net loss for the first quarter of fiscal 2024 included a USD 6.8 million gain from the disposal of assets and USD 1.6 million of non-cash stock compensation.
• Adjusted Ebitda was USD 1.4 million, an increase of almost USD 2 million, compared to a loss of USD 452,000 in the first quarter of fiscal 2024.

Balance Sheet and Liquidity: As of September 30, 2024, the company had USD 3.3 million of unrestricted cash and cash equivalents, USD 1.9 million in restricted cash, USD 23.3 million in outstanding borrowings and USD 27.1 million of borrowing availability under its revolving credit facility.