Coffee Holding Company Reports Annual Results.

Core Viewpoint - Coffee Holding Co., Inc. reported a 23% increase in revenues for the fiscal year ended October 31, 2025, despite facing challenges such as tariffs and consumer dissatisfaction with higher retail prices, which negatively impacted net income [1][9]. Financial Performance - The company achieved sales of $96.3 million, reflecting a 23% increase compared to fiscal 2024 [9]. - Net income was reported at $0.25 per share, down from $0.39 per share in fiscal 2024 [9]. - A cash dividend of $0.08 per share is scheduled to be paid to shareholders [9]. Impact of Tariffs - The tariffs imposed during the second half of fiscal 2025 led to a negative cash balance of approximately $1 million as the company absorbed costs to protect its customers [2]. - With the elimination of tariffs on coffee imports, the company does not expect a recurrence of this cost imbalance in fiscal 2026 [3]. Integration of Empire Coffee Company - The integration of Empire Coffee Company resulted in an aggregate loss of over $1 million, taking longer than expected to regain customers and set up manufacturing [4]. - The closure of the Comfort Foods facility is anticipated to yield annualized cost savings of between $750,000 to $1 million, which should enhance profitability in fiscal 2026 [5]. Cost Management - The company does not expect to incur additional costs related to the discontinuation of operations at a subsidiary, which previously included inventory and receivables write-downs totaling approximately $350,000 [6]. - Despite various challenges, gross profit only declined by 1% during fiscal 2025 [6]. Future Outlook - Moving into fiscal 2026, the company anticipates expanded gross margins in its retail and wholesale business, particularly for its flagship brand, Café Caribe [7].