Coffee Holding (JVA) Q2 2024 earnings summary

Executive summary

• Net sales increased 24% year-over-year for the quarter and 15% for the six months, driven by new private label customers.

• Gross profit margin improved to 19.5% for the quarter and 18.6% for the six months, reflecting higher sales and better cost management.

• Net loss for the quarter was $21,841, a significant improvement from a $359,840 loss in the prior year quarter; six-month net income was $329,183 versus a $891,943 loss last year.

Financial highlights

• Quarterly net sales: $18.99M (up from $15.32M); six-month net sales: $38.54M (up from $33.65M).

• Quarterly gross profit: $3.70M (19.5% margin); six-month gross profit: $7.18M (18.6% margin).

• Quarterly operating expenses: $3.77M; six-month operating expenses: $6.63M.

• Quarterly net loss: $21,841; six-month net income: $329,183.

• Basic and diluted EPS: $0.06 for six months, $(0.06) for the quarter.

Outlook and guidance

• Substantial doubt remains regarding the ability to continue as a going concern until the line of credit, maturing June 30, 2024, is renewed.

• Management expects to fund operations through cash from operations and the credit facility, but renewal is pending.