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].

Core Viewpoint - Coffee Holding Co., Inc. is closing its Comfort Foods manufacturing facility in North Andover, Massachusetts, due to declining sales and profitability in the coffee industry, particularly for regional brands like Harmony Bay [1][5]. Company Strategy - The acquisition of Comfort Foods in 2017 was initially seen as a strategic move to enhance production capabilities on the East Coast, which was essential for competitiveness after the closure of the Brooklyn facility in 2009 [2][3]. - The company has successfully reestablished relationships with large East Coast supermarket chains, contributing to a rebound in annual revenues [4]. Sales and Profitability Challenges - The Harmony Bay product line has experienced a steady decline in sales, attributed to major supermarket chains reducing shelf space for regional brands in favor of national brands, leading to decreased profitability at Comfort Foods [5]. - Despite the challenges, the facility was still relied upon for producing products for new private label customers and increased sales of Café Caribe and Café Supremo Espressos [5]. Operational Improvements - Following the acquisition of Empire Coffee Company, the company plans to consolidate production at the Second Empire facility in Port Chester, New York, which is expected to improve manufacturing and logistical efficiencies [6]. - The closure of the Massachusetts facility is projected to yield annualized net savings of approximately $700,000 by eliminating redundant manufacturing operations on the East Coast [7]. Company Overview - Coffee Holding Co., Inc. is a leading integrated wholesale coffee roaster and dealer in the U.S., offering a wide range of coffee products across various consumer segments and also importing green coffee beans for resale [8].

Core Insights - Coffee Holding Co., Inc. reported strong operating results for the fiscal quarter ended April 30, 2025, with a 22% increase in sales and a maintained gross margin of 19% despite challenges with a major wholesale customer [1][3][10] - The company faced significant fluctuations in green coffee prices, with Arabica prices rising by 25% in early February, leading to necessary price increases for their products [4][5] - The acquisition of Empire Coffee Company showed promising results, with a reduction in losses and a return to previous sales levels, indicating a quicker-than-expected turnaround [6] Financial Performance - Earnings per share increased to $0.11 compared to a slight loss in the second quarter of 2024 [10] - Revenues increased by 22% compared to the same quarter in the previous year [10] Market Dynamics - The company navigated a challenging market environment, including a spike in coffee prices and potential tariffs on imports, which initially caused market volatility [4][5] - The company took advantage of lower market prices during a selloff to extend inventory positions, positioning itself favorably against competitors [5] Strategic Initiatives - The company announced the resumption of its annual dividend at 33% of net earnings, reflecting improved free cash flow and working capital [7] - Coffee Holding Co. offers a diverse range of coffee products and has a strong presence in the wholesale coffee market, catering to various consumer preferences [8]