Coffee Holding Reports 5.1% Sales Decline and Net Income Drop to $262K
JVA•Coffee Holding’s net sales for quarter ended April 30 dropped 5.1% year-over-year to $22.13 million following a 25% plunge in green coffee prices, driving promotional discounts and lower wholesale rates. Net income fell to $262 489 ($0.05 per share) from $644 055 as gross margin declined to 15.8%.
1. Quarterly Financial Results
For the three months ended April 30, net sales totaled $22,126,156, down 5.1% from $23,320,061 a year earlier. Cost of sales was $18,639,088, or 84.2% of net sales, yielding gross profit of $3,487,068 and a margin of 15.8%, compared with 16.0% last year.
2. Green Coffee Price Impact
A rapid 25% decline in green coffee prices beginning in late January led the company to reduce prices and increase promotional activity for both wholesale roasted and green coffee customers, which pressured sales volumes and average selling prices.
3. Operating Expenses and Net Income
Total operating expenses rose by $303,015 to $3,144,572 driven by higher selling and administrative costs. Net income fell to $262,489, or $0.05 per share, versus $644,055, or $0.11 per share, in the prior year period.
4. Future Outlook and Opportunities
Management highlighted new substantial business awards that should benefit from lower input costs and is focusing on reducing inventory levels. Despite the adverse commodity pricing, the company expects to maintain profitability for the remainder of 2026.
