The US coffee roaster and distributor has achieved 12% sales growth to achieve revenues of $121.4m, but a ‘highly uncertain microeconomic environment’ has caused its losses to increase by $5m in the last 12 months
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Farmer Bros said some of the seasonal and inflationary pressures were ‘short-term in nature’ | Photo credit: Farmer Bros
Farmer Bros achieved a 12% increase in first quarter revenues to reach $121.4m but warned that an ‘exacerbated economic backdrop’ is aggravating its losses.
The Texas-based coffee roaster and distributor reported a $7.4m net loss during the three months ended 30 September 2022, compared to a net loss of $2.4m in the same period last year.
Farmer Bros’ total outstanding debt currently stands at $114m.
CEO Deverl Maserang said some of the seasonal and inflationary pressures that had impacted Farmer Bros in its first quarter were ‘short-term in nature’ and were already ‘beginning to reverse in the current second fiscal quarter'.
“As we navigate the current headwinds, we continue to make good progress on our growth strategy, including delivering new customer wins and renewals, executing on our alternative beverage platform with key new partnerships and building momentum with our espresso programs at Revive. While we are mindful of the highly uncertain macroeconomic environment and are managing spending and our balance sheet carefully, our streamlined operating platform combined with multiple growth opportunities in a normalising post-Covid business environment position Farmer to rebuild performance momentum looking ahead,” he said.
Farmer Bros generated net sales of $469.2m last year.
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.