Farmer Bros. (US:FARM)2025-09-11 20:17Financial Performance - Fiscal 2025 net sales were $342.3 million, an increase of $1.2 million, or 0.3%, compared to fiscal 2024[6] - Gross profit for fiscal 2025 was $148.9 million, an increase of $15 million, or 11.2%, with gross margins increasing 420 basis points to 43.5%[6][15] - Adjusted EBITDA for fiscal 2025 was $14.8 million, an increase of $14.3 million compared to fiscal 2024[15] - Fourth quarter net sales were $85.1 million, an increase of $745,000, or 1%, compared to the fourth quarter of fiscal 2024[6] - Fourth quarter gross profit was $38.3 million, or 44.9%, compared to $32.8 million, or 38.8%, in the fourth quarter of fiscal 2024[6] - The company reported a full year net loss of $14.5 million, compared to a net loss of $3.9 million in fiscal 2024[15] - Adjusted EBITDA for the year ended June 30, 2025, was $14,832 million, compared to $558 million in 2024, indicating a significant improvement in operational performance[33] - The EBITDA margin for the year ended June 30, 2025, was -0.1%, compared to 3.1% in 2024, indicating a decline in profitability[31] Operating Expenses and Liabilities - Operating expenses for fiscal 2025 were $150.4 million, an increase of $14.3 million compared to fiscal 2024, primarily due to a decrease in net gains related to asset disposals[6][7] - Total liabilities decreased from $139,664 million in 2024 to $117,684 million in 2025, a reduction of approximately 15.7%[22] - Accounts payable decreased from $48,478 million in 2024 to $37,669 million in 2025, a decline of about 22.3%[22] - The company reported a depreciation and amortization expense of $11,448 million for the year ended June 30, 2025, slightly down from $11,588 million in 2024[24] - The company incurred $7,726 million in pension settlement charges during the year ended June 30, 2025, which was not present in the previous year[33] Cash Flow and Assets - As of June 30, 2025, the company had $6.8 million of unrestricted cash and cash equivalents and $14.3 million in outstanding borrowings[8] - Cash and cash equivalents at the end of the period increased to $6,974 million from $6,005 million, reflecting a net increase of $969 million[24] - Cash flows from operating activities improved to $16,097 million in 2025 from a negative $14,147 million in 2024[24] - Total current assets decreased from $102,981 million in 2024 to $85,546 million in 2025, a decline of approximately 16.9%[22] Market Outlook and Strategic Initiatives - The company expects challenging market conditions to continue throughout fiscal 2026 but believes it has created a strong foundation for growth[2] - The company launched a new specialty coffee brand, Sum>One Coffee Roasters, and upgraded its technology infrastructure[6]