Direct-store-delivery continues to boost sales for Farmer Bros

Farmer Bros has credited efficiencies generated through its direct-store-delivery for an increase in its quarterly revenues | Photo credit: Farmer Bros

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Farmer Bros has credited efficiencies generated through its direct-store-delivery (DSD) and direct ship channels for a 28% increase in third quarter revenues to $119.4m.

The Texas-based coffee roaster and distributor said its distribution methods, which create cost and time efficiencies through avoiding retailers’ distribution centres, were part of ongoing efforts to optimise its business, with weekly DSD sales currently at their highest level since the onset of the pandemic. 

Farmer Bros also reported a 4.2% increase in total green coffee pounds sold compared to 2021.

Nevertheless, the company still made a $4m net loss during the period, albeit improved on the $13.7m loss reported for the same period in 2021. 

“Our 2022 fiscal third quarter performance demonstrated a continuation of strong sequential improvements driven by economic recovery and our business optimisation efforts. We delivered our seventh consecutive quarter of gross margin expansion and achieved our highest adjusted EBITDA since the onset of the Covid-19 pandemic, which speaks to the execution against our strategy that we laid out two years ago,” said Deverl Maserang, CEO, Farmer Bros.

“These efforts continue to improve the efficiency of our businesses, and despite the significant constraints posed by the pandemic, have put us in position to drive attractive performance gains as business conditions further recover throughout the 2022 calendar year,” he added.

Farmer Bros generated net sales of $397.8m in its fiscal 2021. The company delivers beverage planning services to coffee and food service operators, including restaurants, hotels, offices, convenience stores, healthcare facilities, as well as private brand retailers. Its primary brands include Farmer Brothers, Superior, Metropolitan, China Mist and Boyds.