Coffee Holding (JVA) investor relations material

Executive summary

• Net sales for the quarter ended April 30, 2026, were $22.1M, down 5.1% year-over-year due to a rapid decline in green coffee prices and increased promotional activity.

• Net income for the quarter was $262,489 ($0.05 per share), compared to $644,055 ($0.11 per share) in the prior year quarter.

• For the six months ended April 30, 2026, net sales rose 6.9% to $47.7M, with net income of $1.91M ($0.33 per share), up from $1.80M ($0.31 per share) year-over-year.

• Management highlighted the negative impact of a 25% drop in coffee commodity prices, which reduced both sales volumes and profitability.

• Despite challenges, new business was secured that is expected to benefit from lower input costs and improve margins going forward.

Financial highlights

• Gross profit margin for the quarter was 15.8%, slightly down from 16.0% year-over-year; for the six months, gross margin improved to 20.2% from 19.3%.

• Operating expenses increased to $3.14M from $2.84M, mainly due to higher selling and administrative costs.

• Cash and cash equivalents at April 30, 2026, were $2.32M, up from $701,872 at October 31, 2025.

• Working capital stood at $23.2M, up $0.56M from October 31, 2025.

• Other expense increased due to higher interest expense from increased borrowings.

Outlook and guidance

• Management expects to fund operations and meet obligations for at least the next twelve months through operating cash flow and credit facility.

• Management expects to maintain profitability for the remainder of 2026, citing new business wins and anticipated higher margins from lower input costs.

• Plans to reduce inventories as high green coffee prices are believed to be over.

• The company continues to scale back hedging and short-term trading of coffee futures and options, using these practices in a limited capacity.