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Coffee Holding Co. Inc. (JVA-13.22%) has filed its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing an increase in net sales to $21,305,285 from $19,540,402 in the same quarter the previous year. The increase is attributed to higher sales of private label and branded coffee products.
Cost of sales for the quarter was $15,573,359, representing 73.1% of net sales, compared to 82.2% in the same quarter of the previous year. This decrease in cost ratio is due to improved inventory conditions and favorable green coffee prices.
The company reported a gross profit of $5,731,926 for the quarter, compared to $3,480,299 in the previous year, with the increase attributed to higher sales and improved margins.
Operating expenses increased to $4,140,895 from $2,863,388, primarily due to higher payroll costs and expenses related to the acquisition of Empire Coffee Company.
Net income for the quarter was $1,153,256, up from $351,024 in the previous year. Basic and diluted earnings per share were $0.20, compared to $0.06 in the previous year.
Cash used in operating activities was $401,898, while cash used in investing activities was $817,906, primarily due to the acquisition of machinery and equipment. Cash provided by financing activities was $2,200,000, related to credit line activity.
Coffee Holding Co. has a working capital of $22,386,733 as of January 31, 2025. The company expects to fund its operations through cash provided by operating activities and the use of its credit facility.
The filing also details various financial agreements, including a loan modification agreement with Webster Financial Corp., extending the maturity date to June 29, 2025, with a maximum facility amount of $10,000,000.
The company identified several material weaknesses in its internal controls over financial reporting, including issues with inventory misstatements and system access controls.
Coffee Holding Co. continues to focus on expanding its market presence and increasing sales of its private label and branded coffee products.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Coffee Holding Co. Inc. quarterly 10-Q report dated March 21, 2025. To report an error, please email earnings@qz.com.