FORT WORTH, Texas, USA – Farmer Bros. Co. yesterday reported its first quarter fiscal 2025 financial results for the period ended Sept. 30, 2024. The company filed its Form 10-Q, which can be found on the Investor Relations section of the company’s website.
“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 Farmer Brothers President and 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.”
Farmer Bros. Co.: 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 $3.2 million, or 4%, to $85.1 million compared to $81.9 million in the first quarter of fiscal 2024.
- Gross profit was $37.3 million, or 43.9%, compared to $30.8 million, or 37.6%, 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 $40.1 million or 47.2% of net sales. This was a $7.3 million increase compared to the prior year period, which saw an operating expense of $32.9 million, or 40.1% of net sales. This increase was primarily due to a $8.5 million decrease in asset sales, as there were no branch sales during the first quarter of fiscal 2025.
- Net loss was $5 million compared to a net loss of $1.3 million for the first quarter of fiscal 2024. This was primarily driven by a $1.7 million loss associated with the disposal of assets and $500,000 of non-cash stock compensation. The $1.3 million net loss for the first quarter of fiscal 2024 included a $6.8 million gain from the disposal of assets and $1.6 million of non-cash stock compensation.
- Adjusted EBITDA was $1.4 million, an increase of almost $2 million, compared to a loss of $452,000 in the first quarter of fiscal 2024.
Balance Sheet and Liquidity
As of Sept. 30, 2024, Farmer Bros. Co. had $3.3 million of unrestricted cash and cash equivalents, $1.9 million in restricted cash, $23.3 million in outstanding borrowings and $27.1 million of borrowing availability under its revolving credit facility.
